EU to launch major blended finance resources for European DFIs to implement Global Gateway
- All seven European Fund for Sustainable Development Plus (EFSD+) Guarantee proposals supported by the EDFI Management Company were successfully approved by the EFSD+ Regional Operational Board on 15-16 December, for a total amount of up to EUR 1.28 billion.
- Additionally, 20 individual proposals were accorded to the European DFIs Cassa Depositi e Prestiti (Italy), COFIDES (Spain), DEG (Germany), Finnfund (Finland), FMO (The Netherlands), IFU (Denmark), and Proparco (France), amounting to EUR 2.4 billion.
Last Friday the Operational Board of the European Fund for Sustainable Development Plus (EFSD+) gave a positive opinion on 40 investment programmes for a total of EUR 6.05 billion, including 27 proposals from European DFIs and the EDFI Management Company, which will support impact investments in sub-Saharan Africa, Latin America and the Caribbean and Asia Pacific regions. These investments are part of Global Gateway, the EU’s strategy to boost smart, clean and secure infrastructures and links, and cover its key sectors, such as renewable energy, digital infrastructure and climate resilience and health.
The EDFI Management Company and European DFIs’ programmes will cover many of the sustainable development investment priorities set by the European Union under EFSD+, such as connectivity, MSME access to finance and natural capital solutions. Supported by the EFSD+ guarantee, European DFIs will be able to expand their investment activities to more challenging market segments, to mobilise private co-finance, and to maximise impact. These new EFSD+ programmes are expected to become operational in 2023.
“The guarantee programmes approved by the EFSD+ Board will be key to deliver Global Gateway in partner countries and contribute to achieving the Sustainable Development Goals, by crowding in private sector funding. I look forward to working together with European Financial Institutions and our Member states development agencies, as Team Europe, to increase our impact on the ground, particularly in support of sustainable infrastructure as well as developing norms and standards, skills and innovation. These are the building blocks for a more prosperous, greener and fairer world.” said Jutta Urpilainen, Commissioner for International Partnerships.
The investment initiatives will be implemented by European DFIs, either directly or through the EDFI Management Company, that plays a role as a joint platform for promoting European bilateral DFIs’ financial cooperation with the EU institutions on innovative development finance solutions.
«By coordinating this effort with the European DFIs in a true Team Europe approach, EDFI MC is proud to contribute to creating the ideal conditions for effective participation of the private sector in the implementation of the EU’s Global Gateway strategy. We look forward to the next stage of this process and to launching these critical programmes as soon as possible» commented Rodrigo Madrazo, CEO of EDFI Management Company.
European DFIs have worked closely together over the past two years to design and submit joint proposals for the new investment programmes under EFSD+, which complement individual proposals led by EDFI member institutions. These efforts exemplify the Team Europe approach promoted by the EU for the implementation of its international partnerships agenda.
“EDFI is grateful for the unwavering support the EU brings to the association’s member institutions’ efforts by allocating a very large share of the EFSD+ to investment programmes led by European DFIs and EDFI Management Company. This approval marks a key milestone in the European DFIs’ partnership with the EU and will help provide for the resources needed to implement the EU’s Global Gateway strategy,” added Laure Blanchard-Brunac, Director of Policy & Partnerships at the EDFI Association.
About the EDFI Association & the EDFI Management Company
EDFI – the Association of European Development Finance Institutions – was established in 1992 to support and promote the work of bilateral Development Finance Institutions (DFIs). With a combined portfolio of €44 billion, and €9 billion in new investments in 2021, EDFI’s 15 member institutions share a vision of a world where the private sector offers people in low-and middle-income countries opportunities for decent work and improved lives, and where private investment flows are aligned with the Sustainable Development Goals and the Paris Climate Agreement. EDFI’s mission is to promote the joint interests of its members, inform policy, and drive innovation in industry standards. www.edfi.eu
EDFI’s membership includes BIO (Belgium), British International Investments (UK), Cofides (Spain), DEG (Germany), Finnfund (Finland), FMO (The Netherlands), IFU (Denmark), Norfund (Norway), OeEB (Austria), Proparco (France), SIFEM (Switzerland), Simest and CDP Development Finance (Italy), SOFID (Portugal), Swedfund (Sweden).
EDFI members established the EDFI Management Company (EDFI MC) in 2016 as a joint platform for promoting financial cooperation with the EU institutions. EDFI MC delivers development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. Examples include EDFI ElectriFI and EDFI AgriFI facilities targeting investments in early-stage enterprises in the agriculture and energy sectors, the European Financing Partners (EFP) co-financing facility in partnership with EIB, and the MSME Platform risk-sharing facility under the EU’s EFSD. www.edfimc.eu
Mathilde Poncelet, Senior Communications Specialist: email@example.com