EIB to invest €9bn by 2020 in ACP countries
Nine billion: that's the amount that the European Investment Bank (EIB) will invest in the countries of the ACP region (Africa, Caribbean and Pacific) by 2020, in partnership with the Investment Facility ACP.Nine billion: that's the amount that the European Investment Bank (EIB) will invest in the countries of the ACP region (Africa, Caribbean and Pacific) by 2020, in partnership with the Investment Facility ACP.
EIB's President Werner Hoyer said that this sum represents a 25 percent increase in loans to the region, Ecofin news agency reports.
According to Vice-President of the EIB Pim van Ballekom, the objective is "to support infrastructure investments that are critical to private sector development and improving regional integration."
The development of the private sector is very heterogeneous from one African country to another, states an OECD report on the financing of SMEs in Africa.
It is mainly composed of informal micro-enterprises that coexist with large groups. Between the two, there are few SMEs, mainly because of the narrowness of local markets in a context of weak regional integration and an overall business environment remaining hostile.
It is this context that drives the EIB to support SMEs. According to Pim Van Ballekom, "support for the private sector, especially small and medium-sized businesses, remains at the heart of EIB operations in ACP countries".