From the reader. Kauppalehti editor Inka Saarela wrote in his column about the EU’s role in investments in Africa and the need to be vigilant (KL 4.8.).
I agree with the author that the EU should strengthen its position in Africa as an investor and financier of investments. This is also understood at the European Investment Bank (EIP) and we have been awake.
The aim of the EIB is to promote the economic and political priorities of the EU. In order to make this more effective, at the beginning of 2022 the EIB established of EIB Globalwhich focused the EIB’s development banking activities outside the EU countries.
With funding of more than 26 billion, investments of 94 billion
EIB Global’s special priority areas in financing are climate action, innovation, SMEs and micro-enterprises and creating the conditions for sustainable development in the target countries.
Africa has been the main targets of the EIB’s activities outside the EU, in addition to Europe’s eastern and southern neighbours. In the years 2012-2021, the bank’s financing in Africa was a total of 26.2 billion euros, which enabled investments of 94 billion euros.
Since EIB Global was launched at the beginning of this year, investments in Africa will grow through, among other things, increasing local staff, which will bring EIB Global closer to markets and investments.
Funding for vaccine production
One example of EIB Global’s financing in Africa is the EUR 75 million loan signed in June 2022 Institute Pasteurille in Senegal, which supports the construction of the new MADIBA vaccine manufacturing unit. The bank’s financing is key to this investment, which is used to respond to the fight against epidemics and endemics in Africa.
This new unit will greatly reduce Africa’s dependence on imported vaccines and increase vaccine availability. The annual capacity of the unit is 300 million vaccines against COVID-19 and other endemic diseases.
The new unit will significantly reduce Africa’s dependence on imported vaccines and increase vaccine availability.
The basic principles of EIB Global are close cooperation and coordination with the EU Commission and the foreign affairs administration, as well as with the target countries. The bank’s financing supports the EU’s country-specific and regional strategies, which have been jointly negotiated and agreed with the countries.
The criteria are strict
With our funding, we want to promote sustainable development that creates a framework for economic modernization, democracy and the well-being of the population.
In addition, the bank’s participation in the financing of investments ensures that the planning and implementation of projects is carried out in accordance with strict requirements, for example in terms of environmental and social criteria. In the same way as in all EIB-financed projects in the EU and outside.
EIB Global will strengthen the EU’s role as a financier of investments in Africa. In cooperation with financial institutions from other EU countries, we can increase the weight of the EU as an equal partner of African countries, responding to the challenges brought by other global actors.
Director of the Helsinki office
European Investment Bank