The European Union signed today four guarantee agreements worth €216 million. They will help unlock €2 billion investments in the renewable energy sector and increase access to finance for small businesses (MSMEs). Furthermore, they improve investment in urban infrastructure and services in Sub-Saharan Africa and in the EU Neighbourhood.
In the framework of the External Investment Plan (EIP), the four guarantees were signed with:
- the European Bank for Reconstruction and Development (EBRD) to boost renewable energy potential (€50 million).
- the European Investment Bank (EIB), to provide affordable funding to small businesses, with less access to finance (€20 million).
- the German KfW Group to expand the generation of renewable energy in Sub-Saharan Africa and cut the region's carbon emissions and increase energy efficiency (€46 million).
- the Spanish development cooperation agency, Agencia Española de Cooperación Internacional para el Desarrollo (AECID), to help cities develop public-private partnerships and lower the risks for private investors involved in financing urban infrastructure (€100 million).
The EIP is a major contribution to the implementation of the Africa-Europe Alliance on Sustainable Investments and Jobs, which was launched in September 2018 with the aim to create 10 million jobs in five years, boosting investment and promote sustainable development in Africa.