Workshop: New EU Financial Instruments for Africa - opportunities for the private sector
On 1st July 2016 Schuman Associates delivered a workshop to BECI-Brussels Enterprises Commerce & Industry on the new EU Financial instruments for Africa (Agrifi, Electrifi, and Africa Trust Fund). BECI represents 35,000 companies with economic activities in Brussels, as well as self-employed individuals, company managers and liberal professions.
This information session presented the challenges for enhancing the public private partnership between the EU and Africa and opportunities for private companies with these EU Financial Instruments.
Thierno Seydou DIOP, Associate, Africa – Schuman Associates
Jan DRÖGE, Partner – Schuman Associates
What is a Trust Fund?
A Trust Fund is a mechanism used in the field of development cooperation to pool large resources from different donors. The aim is to have one single instrument, following a single strategic framework so that the allocation of funds can be done in a swifter and less bureaucratic way.
EU blending facilities combine EU grants with other public and private sector resources such as loans and equity in order to leverage additional non-grant financing, and achieve investments in infrastructure and support to the private sector.
Agrifi: 500 MEUR
AgriFI is a new blending initiative that aims at increasing investment in smallholder agriculture and agribusiness MSMEs. EU support through Agrifi will mobilise additional public and private investment, in particular through the provision of risk capital, guarantees or other risk-sharing mechanisms. EU support will contribute to de-risking the investment or close a financing gap.
Electrifi: 75 MEUR
The Electrification Financing Initiative (ElectriFI) is a blending initiative aiming to accelerate access to reliable, affordable and sustainable energy services in developing countries by boosting private sector to yield business opportunities. ElectriFI will provide long term High Risk Finance (possible in different forms) and in-kind contribution through Advisory Services in making propositions bankable.
EU Trust fund for Africa: 1, 8 BEUR
European Union Emergency Trust Fund for stability and addressing the root causes of irregular migration and displaced persons in Africa (the “trust fund”) aims to create stability in the regions and to contribute to better migration management. More specifically, it will help address the root causes of destabilisation, forced displacement and irregular migration, by promoting economic and equal opportunities, security and development.
With these instruments, the EU is committed to increase “innovative” funding, blending grants with loans – and stepping up its cooperation with International Financial Institutions.