European Investment Bank lifts African Private Sector impacted by COVID

EIB (www.EIB.org) Global confirms EUR 62 million for six high-impact private sector investment initiatives; new support for African tech startups, rural microfinance, agriculture, and businesses in sectors affected by the pandemic; The EIB President confirms the importance of cooperation between Africa and the EU to support the African private sector ahead of the first EU-AU summit since the pandemic.

Private sector investment across Africa, essential to weather the impact of COVID and unlock sustainable growth, will be accelerated by new financing totalling €62 million confirmed today by EIB Global, the Bank‘s new specialized arm European Investment. The announcements come ahead of the first physical Africa-Europe summit since the start of the COVID-19 pandemic.

The six new partnerships will support targeted private sector investments, including high-tech innovation, rural microfinance and business financing from Cameroon to Malawi.

Werner Hoyer, President of the European Investment Bank, the world’s largest international public bank, highlighted the crucial need to expand cooperation, as part of Team Europe, between African financial institutions and international partners to ensure that the private sector in Africa can boost economic and social growth Speaking before his participation in the EU-AU Summit in Brussels, he said:

“Ensuring that African start-ups, entrepreneurs, small farmers and businesses can seize new opportunities, create jobs and expand is essential for Africa, Europe and the world. For the past six decades, the EIB has worked with financial partners across the continent to support Africa’s private sector. Today, as EIB Global, we are presenting innovative high-impact cooperation that will support companies across the continent, strengthening economic resilience to the impact of COVID-19 and building a better future. The EU-Africa Business Forum ensures that the impact of increasing sustainable private sector investment in Africa is recognized ahead of the EU-African Union summit.”

Speaking at the EU Business Forum in Africa, Thomas Östros, Vice President of the European Investment Bank (EIB): “I am very proud to announce 6 new deals in the private sector. These agreements are the result of this new spirit of cooperation from Team Europe to make every penny of development count. As an EU bank, we are committed to supporting entrepreneurs and companies of all sizes across the African continent. Increasing the impact of international partnerships and development finance. Our investments aim to benefit all sectors of the society: big cities, small towns, vulnerable regions, entrepreneurs and, of course, women and girls”.

Accelerating investment in African tech startups

EIB Global is supporting two of Africa’s leading technology investors, Atlantica Ventures and Janngo, through the Boost Africa initiative. This is a joint initiative with the African Development Bank (AfDB) (www.AfDB.org/en), with the financial support of the European Commission and the Secretariat of the Organization of African, Caribbean and Pacific States (OACPS ) within the framework of the 11th European Development Fund. (FED) (https://bit.ly/3uYezug).

The €12.5 million financing for Atlantica (https://bit.ly/3BrMX1w) will support €50 million of new investment in innovative technology start-ups across the continent and expand specialized venture capital financing for up-and-coming entrepreneurs.

EIB’s new €10 million commitment to Janngo (https://bit.ly/3LJFiRg) will increase investment in early-stage technology and technology-driven start-ups to improve access to healthcare, education and financial services in Africa and enable African technology companies to create jobs for youth and women.

Ensuring access to finance in remote and fragile communities

Thousands of African entrepreneurs will benefit from local currency microfinance in rural areas where access to financial services remains limited through the EIB’s new cooperation with the Grameen Credit Agricole Foundation and the European Solidarity Financing Fund for Africa (FEFISOL). ).

The latest €10 million partnership between the EIB and the Grameen Credit Agricole Foundation (https://bit.ly/36aAmnW) will accelerate social inclusion and strengthen economic resilience to the pandemic, and is expected to support more than €36,000 jobs and enable 98,000 new loans to women entrepreneurs in disadvantaged communities in Africa.

New €5 million funding for FEFISOL (https://bit.ly/3LFSGWb) will enable small farmers currently excluded from mainstream funding to access microfinance through small rural microfinance institutions and trade certified agricultural cooperatives fair in 25 African countries.

The new European Solidarity Financing Fund for Africa, FEFISOL 2, builds on the successful support to rural microfinance provided through the EIB-backed FEFISOL I over the past decade.

Smallholder farmers in Malawi will benefit from EIB support worth €12.5 million for long-term agricultural financing in cooperation with First Capital Bank and the European Union (https://bit.ly/3LChsGS).

The new programme, also supported by an EU grant, is the latest in a regional farm funding initiative. It will enable farmers in Malawi to modernize their equipment and withstand the challenges of a changing climate.

A €12 million COVID Resilience Business Financing Initiative (https://bit.ly/3gSS7dE), also announced today, with the Commercial Bank of Cameroon will support manufacturing, service, agricultural and commercial companies in developing countries. Central Africa was affected by the pandemic. providing essential long-term financing for business expansion.