Migration & sustainable growth for people: investments in micro, small and medium
enterprises and start-ups
38th session of the ACP-EU Joint Parliamentary Assembly, Kigali, 21st November 2019
Catherine Collin, Head of EIB East Africa Regional Representation
A brief recap of EIB’s activities and priorities in the ACP region
Zoom-in on migration and how EIB supports the EU Agenda on Migration
A few examples “from the field”
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The EIB: the EU Bank with a global reach
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‣ Owned by the 28 EU Member States
‣ Natural financing partner for the EU institutions since 1958
‣ Active outside the EU since 1963
‣ Operating in over 160 countries
‣ Around 10% of lending supports development projects (EUR 8.1bn in 2018)
European Investment Bank
• Largest multilateral lender and borrower in the world• We raise our funds on the international capital markets
• We pass on favourable borrowing conditions to clients
• Some 450 projects each year
• Headquartered in Luxembourg with 45 local offices around the globe
• Around 3 500 staff• Including finance professionals, but also engineers, sector economists
and socio-environmental experts
• Over 60 years of experience in financing projects
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The EIB at a glance
EIB in ACP: Mandate & Priorities
Support for SDGs Climate Action Resilience
Gender: protect, impact, invest
Sustainable economic development
Private sector development Vital Infrastructure
• Support to small and medium enterprises and midcaps
• Support to corporates
• Project Finance
• Agriculture, digital economy, health, education
• Financial sector capacity
• Credit lines
• Investment in microfinance
• Investment in equity funds
• Boosting skills
• Water, sanitation, energy, transport, ICT, urban development
• The foundations for sustainable development
• Public and Private Partnerships
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European Economic Diplomacy
European Investment Bank Group
Comprehensive product offering
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Microfinance and SMEs
Equity and funds
investments
Loans and guarantees
Project finance and
PPPs
Local currency lending
Long term public sector
loans
ACP key results in 2018 (1)
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60%
40%
Private Public
• Signatures at an all-time high with EUR1.57bn
• Record level for Investment Facility EUR813m
• Broad range of products: senior debt,equity to local currency lending, technicalassistance, interest subsidies and otherblended finance
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€ 40bn€ 6bn
EIB lending in ACP
2013 - 2018
Total investments supported
in ACP 2013 - 2018
ACP key results in 2018 (2)
Sectors:
Credit lines; 316.3m
Financial Services; 124.91m
Energy; 362.58m
Water, sewerage; 186.4m
Telecommunic
Transport; EUR237.5m
Industry; 106.04m
Health;2.15m
European Investment Bank
37%
17%
20%
24%
2%
West Africa andSahel
Central andEastern Africa
Southern Africaand Indian Ocean
Regional Africaand ACP States
Caribbean andPacific
Geographical split:
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Impact-led approach
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JOBS247,000 jobs
sustained in smaller businesses
WATER200 000 peoplebenefiting from clean water and
sanitation
ENERGY26.2 million
households powered
CONNECTIVITY2.8 million new mobile internet
users
Financing projects that make a lasting difference – measuring our impact on the ground
Ex-ante Results Measurements Framework (ReM)Ex-post monitoring and evaluation
Projects signed in 2018 in the ACP are set to support :
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EIB’s contribution to EU Agenda on Migration – WHAT
• Movement of people is to a large extend unpredictable – lack ofeconomic opportunities, lack of access to vital and socialinfrastructure, inequalities, conflict, discrimination or just sheersurvival, to which climate change can be added are some of thereasons behind migration and forced displacement;
• EIB’s contribution to the EU Agenda seeks to respond to long terminvestment needs and focus on building up economic resiliencethrough support for job creation, enhanced social cohesion andclimate action
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EIB’s contribution to EU Agenda on Migration - HOW
Blending – loans / guarantees with grants
Vital infrastructures that improve lives, support growth & create jobs–e.g. urbanisation;
Access to finance for private sector through financial intermediaries(banks and funds)
Capacity building and technical assistance
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What this means in practice ..East and Central Africa Optical Fibre Roll-Out
Digital inclusion
Connectivity and
regional/global integration
Private sector development
Fragile and conflict-affected
countries
Delivery on EU and EIB
priority objectives
EUR 15m loan for improving digital services for over 9 millionpeople in the Democratic Republic of Congo, Uganda, Rwanda,Tanzania & Zambia
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EUR 30m to improve access to finance for up to 17,000
emerging enterprises run by women in Ethiopia
WEDP- Financing Female Entrepreneurs in Ethiopia
Lower Usuthu Smallholder Irrigation Project (LUSIP II) in Eswatini
EUR 36m loan to support the second phase of LUSIP, to
enlarge the available irrigated farmland for local smallholders
East Africa SME and Microfinance Credit lines
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• Long term financing opportunities for private sectoroperators in key sectors of the economy
• expansion, diversification, modernisation and start-up• EUR, USD or local currency (up to 7 years)• Just over EUR 1 bn deployed over the period 2007-2018
in the region through commercial banks andmicrofinance institutions in Kenya, Tanzania, Uganda,Uganda, Rwanda and DRC
• +/- 2000 beneficiary projects (micro & SME) – averagesize of individual loans : EUR 300K
• Combined with ongoing EUR 4.7m TA programme for intermediariesand beneficiaries (including refugee population in Uganda)
Kenya35%
Uganda19%
Tanzania21%
Rwanda11%
DRC2%
Regional12%
Credit lines
Kenya Uganda Tanzania Rwanda DRC Regional
A model replicated in other regions across the ACPs
Amount EUR 25 million
Promoter D.light Design
Countries Ethiopia, Kenya, Nigeria, Tanzania,
Uganda
Description
EUR 25 million corporate loan for access to energy to households and micro-
entrepreneurs in Sub-Saharan Africa
Design, assembling, distribution, and /or financing and installation of about 10 million
solar devices in Sub-Saharan Africa by the promoter over the next 2.5 years
The project is expected to have significant social impact given technology users (and
final beneficiaries) typically are rural and / or low income households and micro-SMEs in
5 targeted countries
D.Light was a portfolio company of Energy Access Venture Impact Fund in which EIB is a
core investor
OFF-GRID SOLAR ACCELERATION
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And to conclude:
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• https://www.youtube.com/watch?v=T_7OmSDSXtc
Thank you !
European Investment Bank