European Investment Bank
Strategy
The European Investment Bank, headquartered in Luxembourg, is the European Union's financing institution. In addition to EIB's primary vocation as a lender within Europe, the Bank is also active outside the European Union, implementing financial components of agreements concluded under European development aid and cooperation policies. As regards Africa, EIB activities are guided by the "Cotonou" Partnership Agreement signed in June 2000 between the European Union and participating African, Carribean and Pacific states. This Agreement foresees long-term support for "economic and technological infrastructure" and encourages private sector participation in investment projects via the ACP Investment Facility.
Focus
At operational level, EIB is involved in financing all major infrastructure sectors in Africa (energy, water, transport and telecommunications).
Instruments
The EIB makes long-term loans for infrastructure and capital investment projects (mainly fixed assets) and can also provide equity and quasi-equity financing. EIB does not provide grants - at European level grants are managed by the European Commission. In the near future, EIB loans for new regional/cross-border African infrastructure projects should be eligible for support from a new EU-Africa Infrastructure Partnership Trust Fund, initiated by the European Commission and which will notably provide interest rate subsidies.
Major Achievements
The Bank has a strong track record in the African energy sector, having participated in the financing of numerous production and transmission projects that contribute to regional power pools. As regards transport, the EIB focuses on projects that have revenue-generating capacity such as airports, maritime ports and toll bridges. The Bank is also active in telecommunications, a sector which has seen substantial private sector investment.