The private sector holds the largest potential for generating jobs and growth and it is therefore essential to boost responsible private investments — both domestic and foreign — in Africa. Africa’ s strong economic progress over the last two decades shows that there are substantial opportunities. At the same time, it is necessary to generate millions of new jobs, especially for young people entering the job market. Yet, in many African countries, instability and conflicts reduce the access to finance for much needed investment.
The EU is a key investor in Africa and supports investment further through de-risking and facilitating access to finance. The main tool to encourage investment in Africa and the EU Neighbourhood is the EU External Investment Plan (EIP). The Plan will encourage private investors to contribute to sustainable development in countries outside of Europe. The European Fund for Sustainable Development (EFSD) is the financing mechanism supporting investments by public financial institutions and the private sector. The priority goes to sectors with a high potential for job creation, such as: sustainable energy and sustainable connectivity; micro, small and medium enterprises financing; sustainable agriculture, rural entrepreneurs and agroindustry; sustainable cities and digitalisation for sustainable development.
By 2020, the EU aims to leverage € 44 billion of public and private investments with a contribution of € 4.5 billion from the EU.
Financial input: The EU’ s financial input to the EU External Investment Plan comprises guarantees and blending mechanisms. In 2018, the goal was already exceeded with funds worth € 4.6 billion in motion.
Expected investment: In 2018, with the EU’s input, € 47 billion of investments are expected to be achieved, exceeding prior expectations
Recently signed agreements: