Team Europe Unites to Bolster Economic Development in ACP Nations with New €74 Million Funding Initiative
(IN BRIEF) The ACP Trust Fund has secured over €74 million in pledges from seven EU member states, including Denmark, Finland, Germany, Luxembourg, Portugal, Spain, and Sweden, to support economic growth in African, Caribbean, and Pacific (ACP) countries. This funding initiative is part of the EU’s Global Gateway strategy, focusing on grants and technical assistance for sustainable development projects. The European Investment Bank (EIB Global) has formalized agreements with these nations to enhance inclusive economic growth and human development, particularly in vulnerable regions. EIB Vice-President Thomas Östros emphasized the collaborative effort of Team Europe in addressing critical issues like energy, health, and climate. The contributions from each country highlight a unified commitment to fostering green and inclusive growth in the ACP regions.
(PRESS RELEASE) LUXEMBOURG, 10-Oct-2024— /EuropaWire/ — The ACP Trust Fund has received significant support, totaling over €74 million, from seven EU member states as part of a new funding envelope aimed at promoting economic growth in African, Caribbean, and Pacific (ACP) nations. Denmark, Finland, Germany, Luxembourg, Portugal, Spain, and Sweden are the initial contributors to this initiative, which builds upon the EU’s earlier contribution launched in February 2023.
Aligned with the EU’s Global Gateway strategy, this funding is primarily dedicated to providing grants and technical assistance for projects that encourage sustainable development in ACP countries. The European Investment Bank (EIB Global) has formalized agreements with the contributing EU member states, ensuring that the funds will enhance inclusive economic growth and human development, particularly in the most vulnerable and fragile regions.
EIB Vice-President Thomas Östros highlighted the collaborative effort of Team Europe in this endeavor, stating, “This initiative exemplifies how our partners can unite to invest in critical sectors such as energy, health, climate, food security, and digital solutions, ultimately promoting prosperity across Africa, the Caribbean, and the Pacific.”
The financial commitments from the contributing countries are as follows: Denmark (€9.9 million), Finland (€4.3 million), Germany (€30.6 million), Luxembourg (€5.4 million), Portugal (€2.8 million), Spain (€9 million), and Sweden (€12.25 million).
Voices from the Contributors
Denmark’s Foreign Affairs Minister, Lars Løkke Rasmussen, remarked, “Our commitment to fostering inclusive green growth extends to the least developed countries. Supporting the EIB’s ACP Trust Fund aligns perfectly with Denmark’s strategy for deeper engagement with Africa.”
Finland’s Director General Juha Savolainen noted, “We view the ACP Trust Fund as a crucial mechanism for implementing the Global Gateway in ACP countries, facilitating greater digital connectivity and investment opportunities for European companies.”
Germany’s Director-General Dirk Meyer emphasized, “The EIB ACP Trust Fund is essential for enhancing the EU-ACP partnership, ensuring that we address pressing challenges like climate change while mobilizing sustainable investments.”
Luxembourg’s Finance Minister Gilles Roth stated, “Our contribution reflects our dedication to fostering sustainable growth in ACP nations, empowering communities and promoting environmental resilience.”
Portugal’s Minister of State and Finance, Joaquim Miranda Sarmento, shared, “By collaborating with other EU member states, we can effectively leverage resources to tackle global challenges in areas like climate action and job creation.”
Spain’s Minister for Foreign Affairs, José Manuel Albares, expressed, “Spain’s contribution will enhance the EIB Global’s outreach in ACP countries through tailored support and technical assistance, essential for sustainable development.”
Sweden’s Minister for International Development Cooperation and Foreign Trade, Benjamin Dousa, added, “This funding marks a renewed commitment to our historic partnership with ACP nations, fostering collaboration on green transition and entrepreneurship.”
European Commission’s Commitment
Commissioner for International Partnerships, Jutta Urpilainen, welcomed the contributions from member states, asserting, “Empowering the private sector is crucial for sustainable development. Together with our risk-sharing instruments, these contributions will support the Global Gateway investment strategy.”
The European Commission and EIB Global previously signed an agreement in 2023 for €500 million, launching the initial envelopes of the ACP Trust Fund aimed at high-impact private sector projects that require support to materialize.
Part of the Neighbourhood, Development and International Cooperation Instrument (NDICI – Global Europe), the ACP Trust Fund is designed to provide technical assistance and financial instruments, including equity and risk-sharing options. Notable projects supported by the fund include agricultural mechanization initiatives in Madagascar and the installation of telecom towers in Uganda, which expanded communication access in rural areas.
The new funding envelope from the member states enhances the European Commission-financed initiative, providing essential technical assistance, investment grants, and interest rate subsidies to both public and private sectors, ensuring that environmental and social standards are upheld throughout each project’s lifecycle.
Background information
The EIB is the long-term lending institution of the European Union, owned by the Member States. It makes long-term finance available for sound investments that pursue EU policy goals. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in the Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through its offices around the world.
Global Gateway
The Global Gateway strategy is the European Union’s offer for partner countries to support their resilience and sustainable development. It aims to narrow the global investment gap with value-driven investments from the public and private sectors, supporting global economic recovery and accompanying the twin green and digital transitions outside the European Union. Worldwide, the Global Gateway aims to mobilise €300 billion in investments between 2021 and 2027, with a mix of grants, concessional loans and guarantees to de-risk private sector investments.
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SOURCE: European Investment Bank
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