In 2018, the European Investment Bank (EIB) agreed US$3.74bn of new financing for the private sector and infrastructure investment in 20 African countries
Addressing the African Union summit in Addis Ababa, Werner Hoyer, president of EIB confirmed that 2018 represented the largest annual support for investment across Africa.
“Discussions with African leaders here in Addis today will help to strengthen the impact of the EIB’s engagement across the continent in the years ahead. This will ensure that Africa benefits from the EIB’s unique technical, environmental and financial expertise to achieve shared goals and tackle global challenges,” Hoyer added.
“Looking ahead, as the world’s largest IFI financier of digitalisation the EIB is strengthening its cooperation with African and international partners to support digital transformation and the reduction of the gender digital divide across the continent, as highlighted at the Africa-EU High-Level Forum,” Hoyer further noted.
Private sector investment to enhance economic opportunities
Last year, the EIB provided more than US$1.29bn for private sector investment in Africa. This included support for industrial investment in Egypt, Morocco, Tunisia and Nigeria, and new financing for business investment through credit lines with local banks in North, West, East and Southern Africa.
This included targeted financing to enhance financing available for female entrepreneurs in Ethiopia and backing dedicated lending for climate-related investment.
Improving access to clean energy solutions
Last year, the EIB agreed to support investment in projects that will generate more than 1,600MW of clean energy including solar power plants in Morocco, Kenya and Zambia, hydropower in Cameroon and enabling an estimated 10mn households and small businesses in Ethiopia, Kenya, Nigeria and Uganda to benefit from off-grid solar power.
This included support for the pioneering Noor Midelt project in Morocco that combines concentrated solar power and photovoltaic technology in a single project to enable clean solar power to be provided after sunset.
Development in priority sectors
The EIB also backed new investment to enhance the supply of clean drinking water in Angola, improve treatment of wastewater in Egypt, manage flooding in Benin, tackle pollution in Tunisia and enable more efficient use of water for irrigation by smallholders in Eswatini.
Improving education and health
Students in Morocco will benefit from improved teaching and student facilities following EIB support for a new university campus in Fes and a pioneering medical financing initiative will support investment by providers of healthcare to communities with limited services at present.
Expected new EIB financing in Africa
In the coming months, the EIB expected to confirm significant new financing for projects across Africa including support for sustainable transport, urban development, water infrastructure, microfinance and private sector investment.
The European Investment Bank has agreed more than US$54.43bn of investment across Africa since 1965.
Source : africanreview.com