The European Investment Bank Global has funneled EUR 62 million to six high-impact private sector investment programs in Africa, including fresh funding for African tech start-ups, rural microfinance, agriculture, and enterprises in pandemic-affected sectors. Ahead of the first EU-AU summit since the pandemic, the President of the EIB emphasizes the need for Africa-EU cooperation in supporting the African private sector.
New finance of EUR 62 million has been confirmed by EIB Global, the European Investment Bank’s new specialized arm, accelerating private sector investment across Africa, which is critical to combating COVID’s impact and unlocking sustainable growth. The statements came ahead of the first physical summit between Africa and Europe since the outbreak of COVID-19.
From Cameroon to Malawi, the six new collaborations will support targeted private sector investment in high-tech innovation, rural microfinance, and business financing.
Werner Hoyer, President of the European Investment Bank, the world’s largest international public bank, emphasized the critical need for African financial institutions and international partners to work together as part of Team Europe to ensure that Africa’s private sector can drive economic and social growth. He said the following before of his participation in the EU-AU Summit in Brussels:
“Ensuring that African startups, entrepreneurs, smallholders, and businesses can harness new opportunities, create jobs and expand is essential for Africa, Europe, and the world. Over the last six decades, the EIB has worked with financial partners across the continent to back Africa’s private sector. Today, as EIB Global, we are unveiling innovative high-impact cooperation that will back businesses across the continent, strengthening economic resilience to the impact of COVID-19, and building a better future. The EU-Africa Business Forum ensures that the impact of scaling up sustainable private sector investment across Africa is recognized ahead of the EU-African Union summit.”
Speaking at the EU Africa Business Forum, Thomas Östros, Vice-President of the European Investment Bank (EIB): “I am very proud to announce 6 new agreements in the private sector. These deals are a result of this new Team Europe spirit of cooperation to make every development cent count. As the EU bank, we are committed to supporting entrepreneurs and companies of all sizes across the continent of Africa“ He added:
“Partnership is at the heart of our work and even more so since we launched EIB Global, our new specialized arm dedicated to increasing the impact of international partnerships and development finance. Our investments aim to benefit all parts of society: big cities, small villages, vulnerable regions, entrepreneurs, and of course women and girls.”
EIB Global is supporting two of Africa’s leading technology investors, Atlantica Ventures and Janngo, through the Boost Africa initiative. This is a joint initiative with the African Development Bank (AfDB), with financial support from the European Commission and the Organisation of African, Caribbean, and Pacific States Secretariat (OACPS) under the 11th European Development Fund (EDF).
The EUR 12.5 million financing for Atlantica will support EUR 50 million of new investment in innovative technology start-up companies across the continent and expand specialist venture capital financing for promising entrepreneurs.
The new EUR 10 million EIB commitment to Janngo will increase investment in early-stage tech and tech-driven start-ups to improve access to healthcare, education, and financial services across Africa and allow Africa tech companies to create jobs for young people and women.