EIB Activity in Africa, the Caribbean, the Pacific, and the Overseas Countries and Territories

EUROPEAN INVESTMENT BANK

2020

AFRICA

CARIBBEAN

PACIFIC

AND THE OVERSEASCOUNTRIES ANDTERRITORIES

About the European Investment Bank

The European Investment Bank is the world’s biggest multilateral lender. The only bank owned by and representing the interests of the EU countries, the EIB finances Europe’s economic growth. Over six decades the Bank has backed start-ups like Skype and massive schemes like the Øresund Bridge linking Sweden and Denmark. Headquartered in Luxembourg, the EIB Group includes the European Investment Fund, a specialist financer of small and medium-sized enterprises.

FOREWORD BY EIB VICE-PRESIDENTS AMBROISE FAYOLLE AND THOMAS ÖSTROS

HUNDREDS OF PROJECTS AND BILLIONS INVESTED FOR BETTER LIVES

THE IMPACT OF EIB PROJECTS IN SUB-SAHARAN AFRICA, THE CARIBBEAN AND THE PACIFIC

SUSTAINABLE DEVELOPMENT GOALS PROGRESS

PROJECTS IN FOCUS

COVAX: HELPING EVERY COUNTRY GET VACCINES

THE OTHER MEDICAL EMERGENCY

EUROPEAN SUPPORT FOR MALAWI’S FARMERS

A WIN-WIN FOR WOMEN ENTREPRENEURS

PROFILES OF DEALS SIGNED

PARTNERSHIPS

TEAM EUROPE

EUROPEAN DEVELOPMENT FINANCE INSTITUTIONS

PEER INSTITUTIONS

FINANCING WITH PARTNERS

IMPROVING WATER SUPPLIES IN NIGER

GRANTS AND LOANS WORK TOGETHER

WORKING WITH THE UNITED NATIONS

THE WELL-BEING OF PEOPLE AND THE PLANET — ACHIM STEINER INTERVIEW

HOW WE WORK IN AFRICA, CARIBBEAN AND THE PACIFIC

THE RESULTS MEASUREMENT FRAMEWORK

TECHNICAL ASSISTANCE AND INTEREST-RATE SUBSIDIES

ORGANISATION AND STAFFING

THE COTONOU AGREEMENT

ACP PARTNER COUNTRIES AND OVERSEAS COUNTRIES AND TERRITORIES

THE STORY OF THE COTONOU MANDATE IN FIGURES: 2003 TO 2020

THE EUROPEAN INVESTMENT BANK’s annual report on Africa, the Caribbean, the Pacific, and the Overseas Countries and Territories offers an overview of our work to fight poverty and develop economies through investment tools that support private and public sector projects.

Africa, the Caribbean and the Pacific are vastly different regions that face different challenges and need different solutions. What they have in common is a need for investment. This has been brought into sharp focus by the COVID-19 pandemic, but everything is connected: a lack of basic infrastructure impedes the development of companies which, in turn, is a barrier to improving quality of life. We need to keep investing in climate resilience, renewable energy, healthcare, sustainable transport, water and sanitation and telecommunications, as well as supporting the small businesses that drive economies forward.

The European Investment Bank is helping African, Caribbean and Pacific countries create vibrant and sustainable economic growth. In 2020, our total signed deals in these regions reached €2.1 billion.

We assist areas of society that are sometimes forgotten — young people, women and girls, in big cities or in small villages. We want to create opportunities for all to succeed.

In this report, you can meet the people who are making a difference for themselves and for others. There are stories on the Bank’s rapid response to the COVID-19 pandemic as well as healthcare challenges in Africa. We speak to Achim Steiner, administrator of the United Nations Development Programme, about the next steps for achieving the Sustainable Development Goals, and how the coronavirus pandemic is making institutions like ours work together to speed up development impact. There are stories about how we are supporting female entrepreneurs in the Dominican Republic and how we are part of a European effort to bring financing to farmers in Malawi.

Ambroise FayolleVice-President European Investment Bank

Thomas ÖstrosVice-President European Investment Bank

For many of us, 2020 has been the most challenging year of our lifetimes. The COVID-19 pandemic has had grave consequences across the world. The loss of millions of people is by far the most serious consequence, but the effects of the pandemic on day-to-day life, on our economies and on global development will be felt for years to come. We must continue to work together in partnership. It is the only way that we can lessen the worst impacts of the crisis and emerge into a strong recovery.

We are putting our financing to work as part of Team Europe to increase assistance around the world and develop more partnerships. In 2020, EIB signatures in sub-Saharan Africa, the Caribbean and the Pacific, the Overseas Countries and Territories and South Africa reached €2.1 billion, for 47 projects, across all sources of financing. For the ACP Investment Facility alone, the figure is over €1 billion. These figures are our highest on record in the regions. Of our total investment, 71% went to less-developed countries and fragile states. This too is a record. We also approved loans for projects for just over €3 billion. This is another record. The Bank also disbursed €963 million. This is the second highest yearly total.

There are several ways in which institutions like ours can support recovery from a pandemic. In the healthcare sector, to help minimise the short-term impacts of COVID-19, the Bank has helped to finance vaccine research programmes. We have joined forces with the European Commission to support the COVAX programme to help everyone get access to vaccines. COVAX will offer affordable vaccines to as many as a billion people. We are also financing vaccine manufacturing, as well as providing funding to cover costs for staff and protective equipment. This work is building health resilience in several countries in sub-Saharan Africa.

We need to work harder on economic resilience and climate change mitigation and adaptation. Our experience in the fields of climate change mitigation and adaptation is significant, including not only large-scale wind and solar power generation, but also solar power kits in homes, small solar power parks in communities, and other off-grid power solutions. We also do a lot of work in energy efficiency and resilient water and sanitation infrastructure. The Africa, Caribbean and Pacific (ACP) regions are amongst the most threatened by climate change — ranging from environmental degradation to increased drought, flooding and coastal erosion — but they do not always have the resources to deal with these problems. The Bank can help to support these projects. This year, we are financing a large operation to tackle soil erosion in Nigeria, as well as several water projects in Malawi, Barbados and Burkina Faso.

The most effective way to reduce poverty around the world is to support private sector development. In the ACP regions, the EIB therefore places a premium on supporting financial ecosystems and sharing knowledge of best practices to enhance them. We help provide the necessary financing for businesses of all shapes and sizes, from startups and microenterprises up to large corporates. Smaller businesses are the drivers of the economy and the principal job creators. Local financial institutions enable these companies to grow. They need support now, more than ever, as they deal with the economic fallout of the COVID-19 pandemic. Special efforts also are needed to improve access to finance for people who are underserved: young people, rural populations and women.