EFSD The European Fund for Sustainable Development

Operational Report 2019

The EFSD is the financing arm of the EU External Investment Plan

Promoting investment in Africa and the EU Neighbourhood

Jobs. Growth. Prosperity. ec.europa.eu/eu-eip CONTENTS

Foreword 4

1. About the European Fund for Sustainable Development 6

2. Making a difference in Africa and the EU Neighbourhood 12

3. Progress with the European Fund for Sustainable Development 18

3.1 At a glance 20 Progress in 2019 21 – Blending 21 – Guarantee 24 The European Commission is not liable for any consequence stemming from the reuse of this publication. Progress since 2017 25

Luxembourg: Publications Office of the European Union, 2020 – Overall 25 © European Union, 2020 – Blending 26

Reuse is authorised provided the source is acknowledged. – Guarantee 33 The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). For any use or reproduction of elements that are not owned by the European Union, 3.2 In more detail 36 permission may need to be sought directly from the respective rightsholders. 37 The European Union does not own the copyright to certain photos and icons. About – Blending 37 Photos: – Guarantee 40 Cover - top: © Shutterstock.com/sirtravelalot; bottom: © Shutterstock.com/Travel Faery Page 10: © Pixabay Progress in 2019 48 Page 14: © iStock.com/subman Page 18: © Shutterstock.com/Travel Faery – Blending 48 Page 20: © iStock.com/PeopleImages – Guarantee 52 Page 28 (photo 1): © iStock.com/Jonathan Erasmus Page 29 (photo 2): © Shutterstock.com/FrameStockFootages Page 30 (photo 1): © iStock.com/PointImages, (photo 2): © Shutterstock.com/Mark Agnor 56 Page 31 (photo 1): © Shutterstock.com/FS Stock 4. Progress with the other pillars of the EU External Pages 31 (photo 2) and 32 (photo 2): © iStock.com Investment Plan Page 36: © Shutterstock.com/FS Stock Page 38: © Adobe Stock/DedMityay 4.1 Technical assistance 58 Page 41: © Adobe Stock/uslatar Page 43: © Adobe Stock/imageportal 4.2 Investment climate support 62 Page 44: © Adobe Stock/Thomas Iwainsky 63 Page 47: © Adobe Stock/moodboard About investment climate support Page 54: © Shutterstock.com/arrowsmith2 Progress in 2019 64 Page 56: © Shutterstock.com/NDAB Creativity Page 58: © Shutterstock.com/Dusan Petkovic Page 62: © iStock.com/PointImages 70 Page 70: © iStock.com/UntitledImages Annexes 72 Icons: A. Blending projects Certain icons are from www.flaticon.com, and were created by: Projects approved in 2019 73 Freepik, iconixar, Kiran Shastry, becris, Good Ware, eucalypt, bqlqn, and Pixel perfect. All projects 104 Publication identifiers: Print ISBN 978-92-76-10689-0 doi: 10.2841/635451 MN-01-20-082-EN-C B. Communication and outreach 120 PDF ISBN 978-92-76-10688-3 doi: 10.2841/58890 MN-01-20-082-EN-N 4 EFSD OPERATIONAL REPORT 2019 FOREWORD 5

Foreword

This report sets out the progress achieved in Supporting other EU policies the crisis. They include small business owners, 2019 with the European Fund for Sustainable the self-employed, women entrepreneurs and Development (EFSD) – the financing arm of The EFSD complements several other businesses led by young people – ensuring that the EU External Investment Plan. flagship EU policies. Chief amongst these is the recovery is green, digital, just and resilient. the European Green Deal. It will help to cut These results were possible in large part greenhouse gas emissions, create jobs, and For example, we will use the guarantees to because all those involved in putting the enable economies within and beyond the help small businesses stay afloat. They will be Fund into practice – notably the Commission EU to grow more sustainably and fairly. able to get more loans from local banks, and and European Investment Bank services, in many cases they will also be able to pay Jutta Urpilainen EU delegations and our partner financial Several EFSD guarantees will scale up financing less in interest, or repay the loan over a longer European Commissioner institutions – worked so closely and for renewable energy in our partner countries, period, than they would otherwise. for International assiduously together. and many blending projects have a climate Partnerships action component. In addition, we are ramping up investment in healthcare, in particular in laboratory testing, Going beyond our initial financial targets The External Investment Plan is also central through the €80 million European Health to the EU’s Neighbourhood Policy, and will be Guarantee Platform for Africa. Through the Fund, we offer financial key to realising the proposed strategy with guarantees and blending projects, which Africa that the Commission set out in March combine EU grants with financing from 2020. Overcoming the crisis together other public and private investors. There is little doubt that the pandemic will Our original targets, set in 2017, were to Adapting to a new reality threaten the health and livelihoods of millions allocate €4.1 billion for guarantees and of people in Africa and the EU Neighbourhood blending projects by 2020, and to leverage Just as it has in the EU, the coronavirus for some time to come. up to €44 billion in overall investment. (COVID-19) pandemic has struck at the Olivér Várhelyi heart of countries in both Africa and the EU In the EU, we are determined to use all European Commissioner for Neighbourhood and By the end of 2019, we had exceeded these Neighbourhood. means at our disposal to protect people in Enlargement expectations. Current targets are now set at these regions and their jobs and businesses, allocating a total of €4.6 billion and leveraging In response we are taking a ‘Team Europe’ just as we are doing within the Union. an expected €47 billion. approach. We are combining resources from the EU and its Member States, and European The EFSD will be central to those efforts. Supported projects will help improve transport financial institutions, to help address the We can take heart from our success in links, generate more renewable energy, develop challenges that our partner countries face. implementing the Fund so far. Now we must the private sector, notably small and medium- put it to work to help meet the unprecedented sized enterprises, and promote agriculture that We are reorienting many of the guarantees to challenges that lie ahead, with the ultimate respects people and the environment. target people who face the biggest challenges objective of reducing inequalities globally to in maintaining their livelihoods, in the face of ensure that no one is left behind.

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1.

About the European Fund for Sustainable Development (EFSD)

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Jobs. Growth. Prosperity. We also want to contribute to countries’ development in other ways:

That’s what the European Fund for Sustainable Development, or EFSD, is about. Why the EFSD? Equality Resilience Opportunities It provides the financing for the External Through the Fund we1 want to help countries Investment Plan, an EU initiative to scale neighbouring the EU and in Africa create a Promoting equality Helping countries deal Giving women, young people, up sustainable finance in countries virtuous circle that accelerates development. between women and men with the effects refugees and others new neighbouring the EU and in Africa. of climate change opportunities to find jobs and build businesses That means public and private investors are more willing to come in. And in doing so, to create jobs, boost economies - and offer 1 In this report, ‘we’ and ‘us’ refer to the European people a brighter future. Commission unless otherwise specified. How does the EFSD work?

The €4.6 billion European Fund for Sustainable Development (EFSD) is the financial arm of the EU External Investment Plan. Through it we provide financing for development projects and programmes, in two ways: 2 1 This investment helps We help countries to bridge the gap Guarantee Blending neighbouring the EU between the financing (€1.5 billion) (€3.1 billion) and in Africa attract More already available and much more investment, investment the financing still This is a new way of financing development We also fund so-called blending projects. especially from the in countries needed to create jobs, projects. We share the risks involved in These combine - or ‘blend’ - a grant from the private sector, than More jobs, boost growth and meet outside investing, so development banks and private EU with loans and/or other financing from they could otherwise. higher the other UN Sustainable the EU investors will come in and lend to local public and private investors. The grant covers Goals growth Development Goals (SDGs). entrepreneurs or finance development projects. part of the costs of the project and helps to get it off the ground. We’ve divided the overall EFSD Guarantee into individual guarantees focusing on five EFSD blending projects are financed sectors: through two regional investment platforms: More stability, prosperity and small business financing the Africa Investment Platform (AIP) opportunities sustainable energy and connectivity the Neighbourhood Investment Platform local currency financing (NIP). digitalisation 3 More jobs and higher growth This gives people living sustainable cities. make those countries more in those countries more stable and prosperous. opportunities to stay and build their lives, and offers investors more reasons to enter those markets. we invest from the EFSD in overall For every €1 we expect to generate €10 investment

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What else does the EU External Who else Investment Plan provide? are we working with?

As well as financing, the Plan works in two other ways to scale up investment in our We’ve joined forces with a selected group of publicly-owned financial institutions partner countries and deliver deep and lasting change. to fund and manage development projects in our partner countries.

Investment Expertise climate support

We fund what’s called ‘technical assistance’ We work with governments closely to help from experts in different fields, from them improve the investment climate. accountancy to engineering. This includes support to improve: They: the business environment, for example, help develop new projects and ensure how easy it is to start a business they succeed other factors, such as how reliable enable local and EU firms to draft a country is to invest in. business plans In addition, we bring together governments support governments in enacting reforms and businesses to discuss investment to attract investors. challenges.

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2.

Making a difference in Africa and the EU Neighbourhood

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Since 2017 we’ve used the EFSD to launch 2 a wide range of development projects and The EFSD in numbers programmes in countries neighbouring the EU (‘the EU Neighbourhood’) and in Africa.

Together, the projects will help these countries reach their development goals – from ensuring people have access to Jobs Clean water electricity and clean water to enabling and sanitation them to find a job or start a business. More than 5 170 000 3 400 kilometres jobs to be created or sustained of water pipes to be installed or upgraded – roughly the distance between Egypt and Sweden

Small businesses 896 300 cubic metres of extra wastewater to be treated daily Over €1.9 billion in loans and financing to be provided to local entrepreneurs and 1 800 kilometres of sewer pipes to be installed or upgraded small business owners 4 340 000 people to benefit from improved sanitation services – around the same as the Energy population of Mauritania

14 800 megawatts of extra power to be generated each year – enough to provide a basic, subsistence level Connectivity of electricity for over 40 000 households 7 100 kilometres 2 800 gigawatt-hours of roads to be built or upgraded – roughly of energy saved each year the distance from Morocco to Uganda

12 400 kilometres of electricity transmission lines to be Climate constructed or upgraded – the same as travelling from Ukraine to South Africa

15 800 kilotons of CO2 emissions to be avoided each year – around the same 109 100 new connections as Kenya’s emissions in 2017 to urban water supply networks

48 300 gigawatts of renewable energy to be generated each year – enough to power over 100 million fridge-freezers for a year

2 Figures show expected results of blending projects approved since 2017. Expected results for the EFSD Guarantee are also included in figures for jobs, additional power generation, cuts in CO2 emissions, and renewable energy generation.

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Mulhem’s story A small loan that’s making a big difference

Mulhem Nadeem Al-Sokmani is a Syrian refugee who owns a shop in Al-Ramtha, Jordan.

“I arrived here in 2011 with nothing but the clothes on my back,” says Mulhem. “After a while I bought this shop. I wanted to be able to offer more products, and to buy a month’s worth of stock at a time to lower my costs. To do that I needed money upfront, but I simply couldn’t get a loan.”

In 2019 Mulhem’s fortunes changed. He was able to secure a small business loan from a local lender, Tamweelcom. This came thanks to Nasira, a guarantee backed by the EU External Investment Plan and FMO, the Dutch development bank.

It encourages local banks in Jordan and elsewhere to lend to people they would usually consider too risky – like refugees, women or young people.

With this guarantee, we’re addressing the root causes of migration – the reasons why people leave a country. This includes irregular migration - the movement of people to a new place of residence or transit that takes place outside the rules and regulations of the sending, transit and receiving countries.

Now Mulhem can expand his business – and he’s not the only one that will benefit. “My daughters are everything to me,” he says. “I’m doing this for their future. I’m sure they’ll thank me with time.”

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3.

Progress with the European Fund for Sustainable Development

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Progress in 2019 3.1 Blending

[icon: blending] 3.1.1.1. Blending At a glance €973 million €9.6 billion 57 €973in million €9.6 billionin 57 projects EU contributions EU contribution for Total investmentoverall expectedinvestment Projects and andproject project toEU blendingcontribution for Total investmentexpected expected to be Projects and project blending projects in 2019 to be leveraged continuationscontinuations approved blendingprojects projects in 2019 to be leveragedgenerated continuations approvedapproved Sub-Saharan Africa: 24 EU Neighbourhood: 33

How much had we approved for projects, including technical assistance, in 2019? 3

EU Neighbourhood Sub-Saharan Africa €579 million €394 million 60% 40% 33 projects 24 projects

How much overall investment will this generate?

Sub-Saharan Africa €2.9 billion 30%

EU Neighbourhood €6.7 billion 70%

3 For a limited number of blending projects, there are small differences between:· • the amounts which the Commission approves in consultation with EU Member States and· 21 • the amounts of the subsequent project contracts between the Commission and our partner financial institutions. To be consistent, we present in this report the amounts of EU contributions to blending projects which the Commission had approved in consultation with EU Member States. Figures include technical assistance and blending projects covering specific sectors that share a common theme. Back to Contents >> What are we investing in with these projects?

Agriculture, Health, 1.5% education Environment, (social) water, 4.0% 22 EFSD OPERATIONAL REPORT 2019 sanitation 3. PROGRESS WITH THE EFSD 23 Transport, 25.0% 21.6%

Private What are we investing in? How are we providing support? sector Energy developmentWhat are we investing in with these projects?24.5% How are we providing support? 23.4%

How are we providing support? Agriculture, Health, Health, 1.5% Equity Guarantees educationeduc ation Environment, are we providing support 6.1%How 4.1%? (social)(social) water, 4.0% 6.7% sanitation Technical Transport, 25.0% Equity Guarantees Private sector assistance 21.6%Transport 17.9% 6.1% 4.1% 14.4% development 36.0% Technical Equity Guarantees 6.1% 4.1% Overall assistance Overall 17.9% Technical Energy assistance 17.3% Private 17.9% Investment sector Energy grants development 24.5% 71.9% Environment, water, 23.4% sanitation Investment What are we investing in with these projects?25.7% grants 71.9% Guarantees Equity Investment 4.6% 2.3% Health, grants 71.9% education Technical Agriculture, Health,(social) assistanceGuarantees Equity Private sector 1.5%Agriculture education6.7 % 15.4% 4.6% 2.3% development 3.8%Environment, (social) 4.8% water, Technical Equity Transport4.0% Private sector Guarantees sanitation assistance 2.3% 14.4% development 4.6% Transport, 25.0%36.0% 15.4% Environment,21.6% Technical water, sanitation assistance Energy 15.4% 23.9% Sub-Saharan 35.1% Sub-Saharan Energy Africa Africa Investment 17.3% grants 77.7%

TransportPrivate Environment, water, Investment sector32.4% Energy sanitation grants development 24.5% 25.7% 77.7% 23.4% Equity GuaranteesInvestment 22 8.7% 3.7% grants 77.7% Equity Guarantees Private sectorHealth, Agriculture 8.7% 3.7% developmenteducation Technical 3.8% Guarantees 4.8% (social) assistance Equity 6.7% 19.6% 8.7% 3.7% Technical Environment,Transport Private sector assistance Investment water, sanitation14.4% development 36.0%Energy 19.6% grants 23.9% 35.1% Technical assistance 68.0% EU 19.6% EU Investment Energy Neighbourhood Neighbourhood grants 17.3% 68.0% Transport Investment 32.4% grants 68.0% Environment, water, sanitation 25.7% 22 23

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Private sector Agriculture development 3.8% 23Back to 4.8% Contents >>

Environment, water, sanitation Energy 23.9% 35.1%

Transport 32.4%

22 24 EFSD OPERATIONAL REPORT 2019 3. PROGRESS WITH THE EFSD 25

Guarantee Progress since 2017 (when the EFSD started)

6 €366 million up to €4 billion guarantee value in agreements signed of the 6 overall investment Overall or concluded with financial guarantees 4 expected to be institutions in 2019 generated

Targets by 2020

Small business financing €4.1 billion €44 billion

FMO Ventures Archipelagos SME Access to Finance 5

in partnership with in partnership with in partnership with

We aimed to allocate …and to generate €4.1 billion in EU funds… 10 times more in investment.

Energy Cities Results by end 2019

Boosting Investment in African Energy Resilient City Renewable Energy Guarantee Facility 6 Development (RECIDE) billion billion in partnership with in partnership with in partnership with €4.6 €47

We had allocated These funds should generate €4.6 billion in EU funds. 10 times more in investment.

4 The value of the six guarantees and the expected overall investment are based on the amounts agreed in 2020. 5 This guarantee is part of the Intermediated Lending for MSMEs and Agricultural Businesses Guarantee. 6 This guarantee is part of the European Guarantee for Renewable Energy.

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Blending

[Icon:blender] Blending OVERALL (ALL REGIONS)

[Icon:blender] Blending Overall (all regions) €3.1 billion €29.5 billion 157 in Overall (all regions)in projects EU contributions overall investment and project to157 blending expected78 to be 79continuations projects for Subgenerated-Saharan for theapproved EU projects approved in total Africa Neighbourhood by157 the end of 2019 78 79 for Sub-Saharan for the EU What are we investing in? projects approved in total Africa Neighbourhood by the end of 2019How much had we approved for projects, What are we investing in? including technical assistance, by the end of 2019? What are we investing in? Health, Cross-sector education (social)Social 1.1% 3.3%3.3% Information and Agriculture communication technology Cross-sector 4.2% Social 1.0% 3.3% 1.1% Information and EU Agriculture communicationTransport technology Neighbourhood Environment, 4.2% 30.3%1.0% €1.3 billion water, sanitation 79 projects 13.8% Sub-Saharan Transport EU Environment, Africa 30.3% Neighbourhood water, sanitation €1.8 billion 13.8%Private sector €1.3 billion 78 projects 79 projects development Sub-Saharan 18.9% Africa Private sector Energy €1.8 billion development 27.4% 78 projects 18.9% Energy 27.4% How are we providing support? How much overall investment will this generate? How are we providing support? GuaranteesHow are we providing support?Interest rate 3.9% support Equity 0.3% 10.9% Guarantees Interest rate Sub-Saharan 3.9% support Africa Equity 0.3% EU €13.5 billion 10.9% Neighbourhood Technical Sub-Saharan €16 billion assistance Africa 18.2% EU €13.5 billion Technical Neighbourhood assistance Investment €16 billion 18.2% grants 66.7% Investment grants 66.7%

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29 28 EFSD OPERATIONAL REPORT 2019 3. PROGRESS WITH THE EFSD 29

SUB-SAHARAN AFRICA

Sub-Saharan Africa Sub-Saharan Africa

In which regionsWhere are projectsare projects located? located? What are we investing in? Where are projects located? What are we investing in? What are we investing in?

Environment, Information and Two or more water,Environment, sanitation communicationInformation and Tworegions or more West Africa water,6.2% sanitation communicationtechnology regions21.9% West Africa 28.5% 6.2% technology1.6% 21.9% 28.5% Agriculture 1.6% Agriculture6.7% Private6.7% sector Transport development Transport43.6% Central Africa Private sector 7.9% 43.6% Central9.1% Africa development 9.1% 7.9%

Southern Africa East Africa Energy Southern Africa East Africa 19.2% 21.3% 34.0%Energy 19.2% 21.3% 34.0%

How are we providing support? Which countries are we supporting?6 7 How are we providing support? WhichWhich countries countries areare we we supporting supporting??6 How are we providing support?

Guarantees Interest rate support High-income Guarantees1.5% Interest rate 0.5% Middle-income Highcountries-income Equity 1.5% support Middle-income 0.5% countries countries0.4% 11.6%Equity countries22.0% 0.4% 22.0% 11.6% Technical assistanceTechnical assistance14.9% 14.9%

Investment Least developed Investmentgrants Leastcountries developed 71.5%grants countries77.6% 77.6% 71.5%

7 Excluding regional allocations.

6 Excluding regional allocations. 6 Excluding regional allocations. 30 30 31 31

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Where are projects located?

EU's Eastern 30 EFSD OPERATIONAL REPORT 2019 Neighbourhood 3. PROGRESS WITH THE EFSD 31 45.4% EU's Southern Neighbourhood 54.6%

EU NEIGHBOURHOOD

EU Neighbourhood

In which regions are projects located? What are we investing in? What are we investing in? Where are projects located? Which countries are we supporting?7 Health, Cross-sector Agriculture educationSocial 2.6% 0.8% (social)7.9% 7.9% Private sector Transport development EU's Eastern 11.8% Neighbourhood 34.1% 45.4% EU's Southern Neighbourhood 54.6% Middle-income Energy countries 18.4% 100% Environment, water, sanitation 24.4%

8 Which countriesWhat are we are investing we supporting? in? HowHow are are we we providing providing support? support? Which countries are we supporting?7

Cross-sector Agriculture Guarantees Social 2.6% 0.8% 7.1% 7.9% Equity 9.9% Private sector Transport 32 development 11.8% 34.1%

Middle-income countries Technical Investment 100% assistance Energy 22.8% grants 18.4% 60.1% Environment, water, sanitation 24.4%

8 Excluding regional allocations. How are we providing support?

Guarantees 7.1% Equity 9.9%

32 7 Excluding regional allocations. Technical assistance Investment 33 22.8% grants 60.1%

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7 Excluding regional allocations.

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32 EFSD OPERATIONAL REPORT 2019 3. PROGRESS WITH THE EFSD 33

Guarantee

[Icon: guarantee] Guarantee OVERALL

€1.5 billion €17.5 billion 22 €1.54Value of EFSD billionInvestment expected€17.5 individual billion guarantee Guarantee overall to be leveraged programmes of EFSD Value in overall investment Guarantee overall expected to be generated

EU Neighbourhood 33%

Sub-Saharan Africa 67%

Learn more about each of the EFSD’s individual guarantees. Visit ec.europa.eu/eu-eip

Milembe Daniel 35 Student, Tanzania Milembe recently benefited from an EU-backed blending project.

Watch her story at ec.europa.eu/eu-eip

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GUARANTEE AGREEMENT SIGNATURES

By the end of 2019 we had signed or concluded seven guarantee agreements with partner financial institutions.9

Small business financing Energy Cities

Nasira FMO Archipelagos SME Boosting African Energy Resilient City Investment in Guarantee Development Ventures - One Platform Access to 12 for Africa (One4A) Finance 10 Renewable Energy Facility (RECIDE)

in partnership with in partnership with in partnership with in partnership with in partnership with in partnership with in partnership with

This €100 million This €40 million This €30 million This €100 million This €50 million This €46 million This €100 million guarantee will generate guarantee11 will guarantee will guarantee will guarantee 13 will help guarantee will help to guarantee will help up to €1.1 billion in target start-up make it easier for provide affordable scale up investment in expand the generation cities develop public- investment to provide companies offering high-potential small funding to small renewable energy in of renewable energy private partnerships. affordable loans to digital solutions in: businesses in Africa businesses in the Ukraine and in countries in Sub-Saharan Africa. entrepreneurs from agriculture to get access to the EU Neighbourhood. in the EU’s Southern It will also lower the groups who would finance they need Neighbourhood. It will cut the region’s risks for private energy otherwise not be able to grow. It focuses on young carbon emissions and investors involved in to get them, such as transport entrepreneurs, women increase energy financing urban migrants, women and education CDP will work in entrepreneurs and efficiency. infrastructure in Sub- young people. healthcare. collaboration with the start-ups. Saharan Africa and the African Development EU Neighbourhood. With this guarantee, Bank. The guarantee originally we are addressing root came to €20 million. causes of migration, It was increased in including irregular 2020 in response to the migration. coronavirus (COVID-19) pandemic. The guarantee originally came to €75 million. It was increased in 2020 in response to the coronavirus (COVID-19) pandemic.

12 This guarantee is part of the European Guarantee for Renewable Energy. 13 The total value of the guarantee is up to €100 million when taking into account both its parts: 9 A signing ceremony was held for four of these guarantee agreements in early 2020. • one part covers the EU Neighbourhood; the corresponding agreement was signed with the lead financial institution, 10 This guarantee is part of the Intermediated Lending for MSMEs and Agricultural Businesses Guarantee. the European Bank for Reconstruction and Development (EBRD) 11 FMO revised its request for funding from €45 million to €40 million after the Dutch government decided to invest an • the other part covers Sub-Saharan Africa; the corresponding agreement is being negotiated and has still to be signed additional €5 million in the programme. with the lead financial institution, the Association of European Development Finance Institutions (EDFI). Back to Contents >> 36 EFSD OPERATIONAL REPORT 2019 3. PROGRESS WITH THE EFSD 37

About 3.2 Blending In more detail

Blending in a nutshell Types of grant

Blending is a way of financing projects For a given blending project we can provide to help partner countries grow. one of three types of grant:

We use a limited amount of EU money Investment grant: here we cover a part of to bring in further financing from: the project’s costs. This lowers the overall publicly-owned financial institutions, cost to end users or taxpayers. We typically such as development banks use grants for public sector managed projects. In some cases we also use them

private investors, such as commercial in a private sector context. banks or pension funds. This encourages other investors to come in With blending we put money into specific when they would not do so otherwise. investments in areas of the economy which private investors or companies wouldn’t Technical assistance: here we use a grant usually invest in. to help promoters at each stage of a project: For blending projects we provide: before starting – to see if it’s likely to succeed (feasibility studies) either grants, which we don’t get back during set-up – for example, to help small or financial guarantees or risk capital, businesses draw up business plans and which we may get back if the project train staff in local banks to assess them succeeds. after starting – to ensure those running the project have the skills and resources they need (known as ‘capacity-building’)

Interest rate support: here we use the grant to reduce the interest rate of a loan. This in turn cuts the overall project cost for the loan beneficiary, such as a government facing debt constraints. In this sense, the effect is similar to an investment grant.

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Other forms of finance Implementing partners

In a blending project we can also provide Since 2017 we’ve provided EU contributions either a guarantee or risk capital: from the EFSD for blending projects to a range of partner financial institutions. Guarantee: here we share with Risk capital: in this case we buy a stake development banks and private investors in a fund which a financial institution has the risks involved in investing. set up to finance development projects.

We use the guarantee to: Our purchase encourages other, usually Chart 21 Blending in Sub-Saharan Africa back loans or investments which other more cautious, investors, to take part. in 2019 investors make and That’s because we take more risks than them, and are usually the last to receive cover some of their losses. payments (‘dividends’) for our stake. 1.3% Our guarantee could, for example, give the 3.7% 0.8% necessary risk coverage to local commercial 0.4% banks to extend loans to small businesses, How much had we approved for projects, 0.2% which they might not consider including otherwise. technical assistance, in 2019?

14.7% 26.3%

15.0%

19.5%

18.1%

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Guarantee

This section describes progress made with the Guarantee up to 31 December 2019. Since the onset of the coronavirus (COVID-19) pandemic in 2020, we’ve targeted a much greater proportion of the Guarantee at support for small businesses.

For more details, please visit ec.europa.eu/eu-eip.

The EFSD Guarantee Expected investment in a nutshell overall

With the €1.54 billion EFSD Guarantee, we We expect every €1 invested from the share the risks involvedHow in investing much togetherhad we approvedGuarantee for to projects, generate €10 in overall with development banks and including private technical assistance,investment. in 2019? investors. By doing this we encourage them to come in and lend to local entrepreneurs or In other words, we expect the Guarantee How we use the Working in tandem with the finance development projects. to generate investment amounting to 10

times the value of the guarantee put in Guarantee other pillars of the Plan We’ve divided the overall Guarantee into place. This is known as the leverage ratio. We can use the Guarantee in several ways: One of the goals of the EU External smaller, individual guarantees. Each one Investment Plan is to apply an integrated targets a specific area, like renewable energy In addition, with the Guarantee we’re: through our partner financial institutions, to enable local banks in partner countries approach to attracting more investment. or lending to small businesses. One or more taking significant risk vero the full term publicly-owned development banks (financial to lend more, and on affordable terms, of the EFSD That means not just securing more institutions) are responsible for putting each to small businesses showing how a partly-funded guarantee investment by itself – but also supporting guarantee into practice. to partially cover the financing risks for big is more efficient than a fully-funded one governments’ and businesses’ efforts to infrastructure projects through partner make their countries more attractive places We use these guarantees to back loans or avoiding the possibility of exposing EU financial institutions to invest and do business in. investments which other investors make. funds to unacceptable contingent liability. to encourage potential investors to invest If those investors lose money – for example, in a fund which a financial institution has One way we’re doing this is by providing because they’ve lent money to small set up to finance development projects around €140 million in technical assistance businesses which can’t then repay their loans (risk capital); we share with them some of to help put the guarantees to work. For – we agree to cover some of that loss. the risk that they might not get all of their example, this assistance will enable experts money back. in areas from accountancy to engineering In this way, we generate much more to help local banks and businesses to make investment in countries neighbouring the EU The guarantee is not a grant. We will only the most of the support on offer. and in Africa than would happen otherwise. pay out money if a loss occurs. In addition to financing, technical assistance and investment climate support are the other two cornerstones of the EU External Investment Plan. You’ll find more details in Chapter 4 below.

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Investment sectors 14

Local currency financing Cities 11% 8% Energy 24% Tackling climate change and Digital development for all expanding clean energy Digitalisation Several guarantees will allow people to 8% A significant proportion of the overall harness the opportunities that digitalisation Guarantee will support climate-related brings. They aim to: investment, notably through guarantees improve access to broadband in the sustainable energy and connectivity Small businesses sector. invest in enabling technologies servicing and agriculture many other parts of the economy 50% These guarantees will help to set up or widen access to education and healthcare, expand projects that will: in particular for women. generate more renewable energy increase energy efficiency For example, FMO Ventures is expected to connect many more communities catalyse around €1 billion for innovative Supporting small firms Cutting the risks of borrowing for small ventures in: and farmers businesses (local currency lending) to sources of energy, such as national power grids (connectivity). financial services Several of our individual guarantees support Other guarantees enable banks in partner off-grid energy micro-, small and medium-sized businesses countries to lend to small businesses in their By doing so they will help millions of people. agricultural technology (agritech) (MSMEs) and farmers and food businesses local currency. This shields those businesses (agriculture). from the risk of borrowing in a hard currency, education and healthcare such as the US dollar, which could make the mobility These guarantees could create or support up loan much harder to pay back if the local e-commerce. to 2.8 million jobs, many of them in currency falls in value. countries affected by migration. One of them, led by the KfW Group, will They will generate investment to support: accelerate the growth of small businesses small-scale farmers so they can feed their and investment in sustainable energy that helps keep economies stable. families and communities (agriculture) Improving living conditions in cities entrepreneurs in rural areas to set up new businesses or expand existing ones The rate of urbanisation is accelerating (rural entrepreneurship) Empowering women across our partner countries. So some of the individual guarantees will help cities larger businesses producing food and develop in a sustainable way and improve drinks, or the ingredients that go into The guarantees which support financing for local governments’ access to financing. them (agribusiness). micro-, small and medium-sized enterprises (MSMEs) and agriculture mainly target women. Guarantees in other sectors will For people living in cities, this will mean: also help empower women, like the SIFA better living conditions guarantee for digital development. more jobs 14 In 2020 the allocations for some individual This is in line with the Sustainable new business opportunities. guarantees were revised in response to the Development Goal of ensuring greater coronavirus (COVID-19) pandemic. The percentage It will also help cities become more resilient figures shown here for each sector reflect those gender equality through economic revisions. empowerment. to climate change, and adapt to it.

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[Icon: globe with EuropeRegions and Africa] covered Guarantee agreements Working with implementing Applying the development Which regions does the EFSD Guarantee cover? - a brief definition partners effectiveness principles

Our partner financial institutions implement We’ve joined forces with a selected group We play a leading role in the Global EU individual EFSD-backed guarantees. Before of publicly-owned financial institutions to Partnership for Effective Development Neighbourhood 32% they can do so, they first need to sign fund and manage development projects Cooperation, established in 2011. guarantee agreements with us. in our partner countries. We remain committed to supporting Each agreement sets out the terms on They have extensive experience of working developing countries more effectively in Sub-Saharan Africa which we on the EU side offer a guarantee in the kinds of place which we want the the areas which underpin the Partnership. 68% to the financial institution(s) we’re working Guarantee to benefit. And we’re doing so in the way we with. implement the Guarantee. [Icon: These include countries or regions where: Investments unlocked by the Guarantee docum Investments unlocked by the EFSD Guarantee ent with three lines icon] These terms cover, for example: there is peace but the state is weak could directly benefit 61 couldcountries directly in: benefitWhat 61 is countriesa guarantee in: agreement? the profile of the business that is going (fragile state) Ensuring transparency • Sub-Saharan Africa We’re providing extensive information • the EU Neighbourhood. Sub-Saharan AfricaOur partner financial institutions implement to receive investments there is conflict, or has been recently individual EFSD-backed guarantees. Before about the Guarantee to stakeholders and the EU Neighbourhood.they can do so, they first need to sign the kind of risks everyone involved is These include all least developed countries in few, if any, banks or other financial the public in several ways. These include: guarantee agreements with us. Sub-Saharan Africa, except for the Central going to take institutions or investors are present African Republic, Djibouti and Eritrea. regularly updating our new website, These include all leastEach developedagreement sets out the terms on which how much the guarantee costs. countries in Sub-Saharanwe on the Africa, EU side offer except a guarantee to the the criteria for so-called least developed which features: financial institution(s) we’re working with. for the Central African Republic, Djibouti country (LDC) status are met; these – full details of every individual and Eritrea. These terms cover, for example: include: guarantee and blending project • the profile of the business that is going ­­– low average incomes – text and videos in plain language to receive investments • the kind of risks everyone involved is – weak education and healthcare systems about how the Guarantee, blending going to take – a fragile economy. and the other pillars of the EU • how much the guarantee costs. External Investment Plan all work By working together with us in a new way – details of our partner financial on the Guarantee, our partner financial institutions institutions are helping us deliver on our – news about progress with the Plan shared objectives. and upcoming events continuing to publish all documents discussed by the EFSD Strategic Board, which guides the Fund’s implementation presenting to an estimated 4 400 people in 2019 at: Operations and provisioning – outreach events which we organized, 50 targeting the business and investor No transfers or investment operations communities in partner countries, as covered by the Guarantee occurred in 2019. well as governments officials and staff So there were no returns, losses or from EU delegations and EU Member recoveries, and the provisioning and level of States’ embassies the EFSD Guarantee Funds was adequate. – external events in partner countries and in EU Member States.

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Working together Results Independent evaluation: To plan and implement the Guarantee, In our guarantee agreements with our ‘EFSD is strongly relevant’ the EU and its Member States have partner financial institutions, we’re worked closely together in different ways, setting out clear milestones and targets In 2019 independent consultants conducted for example, by: to be reached with each guarantee. an evaluation of the EFSD. They concluded The independent evaluation meeting regularly as members of the As implementation gets underway, we’ll that the Fund is ‘strongly relevant’ to the concluded that the EFSD: EFSD Strategic Board and the EFSD communicate regularly about the progress investment needs of Sub-Saharan Africa Operational Board being made towards achieving them. and the EU Neighbourhood. has been highly relevant to the new adopting a joined-up approach to SDG-led development finance model providing investment climate support Involving the public and private sectors has a pipeline aligned with the SDG in partner countries. This is allowing us Our work to implement the Guarantee has priorities to pool our respective strengths and strengthened the partnership between areas of expertise. national financial institutions in EU Member delivers on financial additionality States and international development banks. enables the EU to support: The Commission has, both centrally – private sector development and through EU delegations in our partner Private investors and philanthropic – sub-sovereign investments countries, had close, ongoing contact organisations have also expressed their – innovation with colleagues in our partner financial interest. institutions. facilitates transparency and This closer partnership and heightened coordination with its governance This cooperation has included our joint interest have in part been thanks to the structure participation in outreach events to explain extensive outreach work which we’ve the Plan and encourage businesses and undertaken, both in partner countries and investors to take part. in the EU.

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Progress in 2019 WhereWhere are are projects projects located? located?

Central Africa 4.1% Where are projects located?

Where are projects located? Blending Two or moreCentral Africa regions 4.1% 16.5% Southern Africa Central Africa 44.9% Two or more4.1% SUB-SAHARAN AFRICA Eastregions Africa Two16.8%16.5% or more Southern Africa regions 44.9% 16.5% Southern Africa East Africa 44.9% West16.8% Africa €394 40% €2.9 24 East 17.6%Africa million billion 16.8% West Africa What are we investing in? in of the in projects 17.6% EU contributions EU’s total 2019 overall investment approved West Africa Agriculture 3.8% to blending EFSD contribution expected to be Private17.6% sectorWhat What are are we we investing in? in? projects for blending generated development 4.8% What are we investing in? Agriculture 3.8% Energy Private sector 35.1% Environment,development Agriculture 3.8% water,Private sanitation4.8% sector 23.9%development Energy 4.8% 35.1% Environment, water, sanitation Energy 35.1% Environment,23.9% water, sanitationTransport 23.9% 32.4%

Transport 32.4%How are we providing support? Transport 32.4% Guarantees Equity How4.6% are we providing support?2.3% TechnicalHow are we providing support? assistance How are we providing support? Equity 15.4%Guarantees 4.6% 2.3% TechnicalGuarantees Equity assistance 4.6% 2.3% Technical15.4% assistance 15.4% Investment grants 77.7%

Investment grants 77.7% Investment 43 grants 77.7% 43

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EU NEIGHBOURHOOD

WhereWhere are are projects projects located?located? €579 60% €6.7 33 million billion Where are projects located? in of the in projects EU’s Eastern EU contributions EU’s total 2019 overall investment and project Neighbourhood 45.2% Where are projects located? to blending EFSD contribution expected to be continuations EU’s Southern projects for blending generated approved Neighbourhood EU’s Eastern 54.8% Neighbourhood 45.2% EU’s Southern EU’s Eastern Neighbourhood Neighbourhood 54.8% 45.2% What are we investing in? EU’s Southern Neighbourhood Health, education 54.8% (social) What6.7%What are are we we investing in? in? Private sector TransportHealth, education development 14.4%(social) 6.7%What are we investing in? 36.0%

Private sector TransportHealth, education development 14.4%Energy( social) 36.0% 17.3% 6.7% Private sector Transport Environment,development 14.4% Energy water,36.0% sanitation 17.3% 25.7%

Environment, Energy How are we providing support?water, sanitation 17.3% 25.7% Equity Guarantees 8.6% 3.7% Environment, How are we providing support? water, sanitation 25.7% Equity Guarantees Technical How are8.6% we providing support?3.7% assistance 19.6% How are we providing support? Equity Guarantees Technical 8.6% 3.7% assistance Investment 19.6% grants 68.0% Technical assistance Investment 19.6% grants 68.0%

Investment grants 68.0% 45

45

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Guarantee Continues on page 55 >> In 2019 we signed or concluded six guarantee agreements with partner financial institutions:15

Financing for small businesses Urban infrastructure

FMO Archipelagos One4A SME Access Resilient City Ventures – One Platform for Africa to Finance 17 Development (RECIDE)

EU guarantee: EU guarantee: EU guarantee: EU guarantee: up to €40 million16 up to €30 million up to €100 million up to €100 million Total investment expected: Total investment expected: Total investment expected: Total investment expected: around €1 billion €150 million up to €1.1 billion €450 million Lead financial institution: Lead financial institution: Lead financial institution: Lead financial institutions: FMO (the Dutch Cassa Depositi European Investment Agencia Española de Cooperación development bank) e Prestiti (CDP) Bank (EIB) Internacional (AECID) Eligible regions: Eligible region: Eligible regions: Eligible regions: Sub-Saharan Africa Africa Sub-Saharan Africa Sub-Saharan Africa EU Neighbourhood EU Neighbourhood EU Neighbourhood

With this guarantee, FMO will provide venture Archipelagos will enable small businesses with This guarantee targets small and medium-sized RECIDE will help cities develop public-private capital to start-up companies which: high potential across Africa to access finance enterprises (SMEs) in the EU Neighbourhood, and partnerships and lower the risks for private are led by young entrepreneurs through innovative capital markets solutions. especially young entrepreneurs, women investors involved in financing urban These include ‘basket debt’, where small entrepreneurs and start-ups. infrastructure. develop innovative technology to lower the businesses come together to borrow at better costs of making or supplying products and It will focus on: rates. It will provide affordable funding to small services, such as mobile banking, that were businesses which have less access to finance energy efficiency previously unaffordable to many people The guarantee will also allow financing partners because local financial institutions consider them flood protection offer digital solutions in a wide range of to share the risk of investing in projects. as riskier clients. The guarantee provides local public transport areas, from agriculture, access to energy and banks and financial institutions with a first loss financial services to education, healthcare, By doing so it will: credit protection. water and sanitation transport and logistics. generate up to 50 000 jobs, many for young solid waste treatment. people This guarantee will: The guarantee will support up to 125 000 new sustain around 18 000 jobs The guarantee reassures lenders that they will benefit about 1 500 small businesses in jobs, directly and indirectly. support 1 000 small businesses. recover at least some of their investment in Africa. the event of losses. It also lowers borrowing The guarantee originally came to €20 million. costs. It was increased in 2020 in response to the coronavirus (COVID-19) pandemic.

15 A signing ceremony was held for four agreements in 2020. 17 This guarantee is part of the Intermediated Lending 16 FMO revised its request for funding from €45 million to for MSMEs and Agricultural Businesses Guarantee. €40 million after the Dutch government decided to invest a further €5 million in the guarantee. Back to Contents >> 54 EFSD OPERATIONAL REPORT 2019 3. PROGRESS WITH THE EFSD 55

>> Continues from page 53

Renewable energy

Boosting Investment African Energy in Renewable Energy Guarantee Facility19

EU guarantee: EU guarantee: €50 million18 up to €46 million Total expected investment: Total investment expected: up to €500 million €745 million Lead financial institution: Lead financial institution: European Bank for Reconstruction Kreditanstalt für and Development (EBRD) Wiederaufbau (KfW) Eligible region: Eligible region: EU Neighbourhood Sub-Saharan Africa

This guarantee will help to scale up investment This guarantee will help to: in renewable energy in Ukraine and in the EU’s expand the generation of renewable energy Southern Neighbourhood, in particular in Jordan, in Sub-Saharan Africa Lebanon and Tunisia. cut the region’s carbon emissions The EBRD will provide guarantees to lenders, such increase energy efficiency as local commercial banks, which will allow them to provide financing to projects alongside the It will partially cover the offtake risks in EBRD’s own loans. renewable energy projects, such as wind farms and solar energy plants. By doing so it will give The projects will help unlock countries’ substantial many more people access to energy and help to renewable energy potential. It will also show how reduce power shortages. the private sector can help meet growing energy demand. The guarantee is expected to provide 340 megawatts of additional installed renewable energy capacity.

18 The total value of the guarantee is up to €100 million when taking into account both its parts: • one part covers the EU Neighbourhood; the corresponding guarantee agreement was signed with the lead financial institution, the European Bank for Reconstruction and Development (EBRD) • the other part covers Sub-Saharan Africa; the corresponding guarantee agreement is still being negotiated and has still to be signed with the lead financial institution, which is the Association of European Development Finance Institutions (EDFI). 19 This guarantee is part of the European Guarantee for Renewable Energy. Back to Contents >> 56 EFSD OPERATIONAL REPORT 2019 1. ABOUT THE ESFD 57

4.

Progress with the other pillars of the EU External Investment Plan

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4.1 Type 1: projects Type 1: projects

This type of technical assistance helps to In most cases technical assistance supports In this case technical assistance helps to develop high-quality investment projects. Experts in develop high-quality investment projects. blending projects by: different areas from accountancy to engineering can come in and provide their expertise at Experts in different areas from accountancy different stages of a project: funding feasibility studies to see if the Technical to engineering can come in and provide their project is likely to achieve its goals expertise at different stages of a project.

In most cases technical assistance supports blending projectshelping localby: banks screen project and business proposals • funding feasibility studies to see if the project is likely to achieve its goals assistance supporting beneficiaries in managing their • helping local banks screen project and business proposals • supporting beneficiaries in managing their financialfinancial affairs. affairs.

Technical assistanceTechnical for EFSD assistance blending for projects EFSD and guarantees, blending projects and guarantees, 2017-192017-19 (€ (€ million) million)

250

200 86 150 Guarantees - all regions + 110 Blending - EU Neighbourhood 100 59 Up Blending - Sub-Saharan Africa With technical assistance we help 129 + to 50 + 142 implement the other two pillars of the 71 EU External Investment Plan – finance 59 (the EFSD) and investment climate 0 2017 2018 2019 2017-19 support. 2017 2018 2019 2017-19

We fund two types of technical In this chart we have updated the 2017-18 figures for Sub-Saharan Africa cited in the 2018 EFSD assistance. These focus on: Operational Report (2018: €77 million; 2017: €131 million;) to reflect up dated regional attributions In the EFSD Operational Report for 2018 We signed two technical assistance of projects covering more than one region. projects – enabling development we cited figures of €131 million for 2017 contracts linked to guarantees in 2019: banks and investors to develop Ofand the €77 €142 million million for amount2018 for for Sub-Saharan guarantees, €34 million one came with fromFMO thefor Neighbourhoodthe Nasira guarantee, Investment high-quality projects which the EFSD PlatformAfrica. In Trustthis chart Fund. we’ve updated these worth €4.2 million can help to finance figures to reflect updated regional another with IFC for the Small Loans Weattributions signed two of technicalprojects coveringassistance more contracts linked to guarantees in 2019: investment climate support and Guarantee Programme, worth •than one region. – enabling governments to enact one for the Nasira guarantee (FMO) worth €4.2 million,€4.5 million. This contract is conditional • another for the Small Loans and Guarantee Programmeon the (IFC)signature worth of €4.5 the million guarantee (This contract reforms to make their countries Of theis conditional €142 million on thefor guarantees,signature of the guarantee agreement.). more attractive places to invest in. €34 million came from the Neighbourhood agreement. Investment Platform Trust Fund.

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Type 2: investment climate support

This type of expertise supports They could show cooperatives and local governments’ efforts to make their agricultural banks how to lend to small countries more attractive places to invest agricultural businesses so they: and do business in. get back the money they’ve lent and

It does so by funding: get a reasonable return on their loans. economic studies This could mean, for example, learning a process of regular, formal dialogue, how to: known as structured dialogue, between identify whether a potential borrower the private sector and governments can actually repay support to put government reforms design loans to make them more into practice. accessible to a wider range of agricultural businesses. Much of this assistance takes the form of stand-alone projects. In other cases Other types of technical assistance are it comprises projects linked to regional related to: investment programmes. budget support programmes, which One example could be a project to encourage are contributions to the government more lending to small agricultural businesses. budget including funding to support Technical assistance could fund support macroeconomic reforms, or from experts in finance for agriculture demand-driven facilities – here partner (agrifinance), such as: countries submit requests to the EU for accountants assistance according to their specific needs. engineers insurance experts. For more details on investment climate support, please see the next section of this report.

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4.2 About investment climate support

Governments in countries neighbouring the they’re better placed to achieve the EU and in Africa are working to make their UN’s Sustainable Development Goals, countries more attractive and sustainable in particular by reducing poverty. Investment places to invest and do business in. In other words, they’re improving the Through the EU External Investment Plan climate support investment climate. And by doing so, we’re supporting their efforts in three ways:

Analysis looking at what stops countries from attracting more investment

Actions Dialogue supporting governments helping to get businesses with reforms and companies and governments to jointly to compete and make identify and tackle higher value products barriers to investing

The Sustainable Business for Africa Platform (SB4A) One way we’re working to deliver the EU It brings together the business community External Investment Plan is through and the government. Where relevant it also dialogue organised as part of the builds on dialogue underway with trade Sustainable Business for Africa (SB4A) unions, cooperatives and other stakeholders. Platform. Working jointly, they discuss: This is a process of regular (structured) the main issues concerning: dialogue in a partner country which the – business development local EU delegation can facilitate. – investment – trade how to tackle them reforms that governments can pursue.

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Progress in 2019

Country-by-country survey We also collected feedback from EU Support to design and deliver New support programmes delegations in Africa and the EU programmes on the ground We conducted a survey with all EU Neighbourhood through a questionnaire We launched two new technical assistance delegations in Africa to get a clearer that supported the preparation of the 2019 Visits by experts programmes supporting investment climate picture of their work to help improve the EU Aid-for-Trade Progress Report.20 improvements in December 2019. DG investment climate. Of the countries for DEVCO also manages these. We continued to provide support through which we received answers: This gives an overview of EU programmes the Trade and Private Sector Development to help countries: They will help countries to improve the and Engagement Facility (TPSDE). The investment climate and set up processes take part more fully in the global trading European Commissions’s Directorate- of formal dialogue between the business system (trade-related capacity-building) General for International Cooperation and community and the government. improve their investment climate. Development (DG DEVCO) manages the 38 facility. African countries This helps EU delegations to design and have in place a process of deliver investment climate support public-private dialogue programmes. Between July 2018 Working with and December 2019 EU Member States Between July 2018 and December 2019 the facility enabled independent experts 32 We work closely with EU Member States to make 31 short-term visits to support 31 have in place formal to provide investment climate support for the implementation of investment climate support visits business-government talks individual countries in a joined-up way. support programmes on the ground. by investment climate as part of the EU-backed experts to EU delegations Sustainable Business That means building on: Of these, 23 were to help with setting up for Africa (SB4A) Platform a Sustainable Business for Africa (SB4A) the ways in which, in most countries, platform for government-business dialogue. international development donors 2 already work together closely technical assistance In the EU Neighbourhood we continued programmes launched 20 EU Member States’ expertise our support through policy dialogue. We: have an networks which already exist of: enhanced the dialogue which is part of EU chamber of commerce – companies our budget support programmes – chambers of commerce provided technical assistance to conduct As well as support to set up geographic – development finance institutions diagnostics and assessments, in order programmes, we worked to integrate – development agencies. 29 to promote investment climate reforms investment climate improvements and used instruments such as twinning and public-private dialogue into new and have EU Member States and This helps us to draw on and pool our TAIEX, which build on EU Member States’ existing actions. business organisations in place respective strengths and areas of expertise. expertise. It also means we can divide the work needed more effectively between us.

20 The 2019 EU Aid for Trade Progress Report is available at https://op.europa.eu/s/oaZo

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How muchHow much investment investment climateclimate support support did did each regioneach region in Sub-Saharan in Sub-Saharan Africa Africa receive receive in 2019 ?in 2019?

FinancialFinancial support support How much investment climate support did each region in Sub-Saharan Africa receiveWest in 2019Africa? Central Africa €33.2 million €68.5 million 5% 10% How much investment climate support did West Africa How much support did we provide for business environment reforms Centraleach Africa region in Sub-Saharan Africa receive€33.2 in 2019million? €68.5 million in Sub-SaharanHow much Africa andinvestment the EU Neighbourhood climate support in 2017 -19? 5%Sub-Saharan Southern10% Africa – all did we provide overall in 2017-19? West Africa AfricaCentral and Africa regions Indian Ocean €33.2 million€260.2 million €68.5 million 5%Sub-Saharan €155.1Southern10% million Africa38% – all Africa23% and regions Indian Ocean €260.2 million EU €155.1 million Sub-38%Saharan Southern23% East AfricaAfrica – all Neighbour Africa and €161.6 millionregions -hood Indian Ocean 24%€260.2 million €155.1 million 38% 40.5% East Africa Total, 2017-19 23% How much investment climate support did Sub- €161.6 million €3.8 billion each region in the EU Neighbourhood receive24% in 2019? Saharan How much investment climate support did Africa How much investment climate supportEast did Africa €161.6 million 59.5% each regioneach region in the in theEU EU Neighbourhood Neighbourhood receive receive EUin 2019Neighbourhood ?in 2019? - 24% Eastern and Southern How much investment climate support did EU Neighbourhood€15.2 million - EU each region in the EU Neighbourhood receive in 2019Eastern4%? and Neighbourhood - Southern Southern €15.2 million €164.6 million EU EU Neighbourhood4% - Neighbourhood41% - Eastern and EU The business environment is the top driver of The investment climate also includes: Southern Southern Neighbourhood - €164.6 million €15.2 million the investment climate. • macro-level drivers Eastern 41%EU 4% o macroeconomic stability Neighbourhood - €222.6EUmillion It has 10 dimensions: political stability Southern Neighbourhood55% - How much investment climateo support did €164.6 million • business simplification governance and the rule of law Eastern we provide each year fromo 2017 to 2019? 41% €222.6 million • business tax policy and administration • human-centered drivers 55%EU In what form did we provide investment climateNeighbourhood support - • (€ million) human development investment policy o in Sub-Saharan Africa and the EU Neighbourhood in 2019Eastern? • land and property rights o innovation. €222.6 million • trade1600 regulation and policy In what form did we provide investment climate Contributionssupport55% to: in Sub-Saharan Africa and the EU Neighbourhood- inspecific 2019-?purpose • financial1400 markets For a one-page summary, visit ec.europa.eu/eu-eip In what form did we provide investment climateprogrammes support • Sector budget - funds managed commercial1200 justice and556.9 dispute resolution in Sub-SaharanIn what formAfrica did weand provide the investmentEU Neighbourhood climateContributions support in 2019? to: support - byspecific international-purpose • labour law and employment policy in Sub-Saharan Africa and the EU Neighbourhood in 2019? 1000 595.8For more details, see indicator 3.5 of the EU 21.4% organisations.programmes • infrastructure policy and regulation 402.5 Sector budget 5.8% 800 + Result Framework, available at: - funds managed • energy policy and regulation. support Contributionsby international to: +https://europa.eu/capacity4dev/sites/default/fi - specific-purpose 600 + 21.4% organisations. les/3.5_-_investment_climate_-_290527.pdf programmes5.8% 400 882.7 Sector budget - funds managed 725.6 678.6 support byProject international-type 200 21.4% interventionsorganisations. 72.5%5.8% 0 Project-type 2017 2018 2019 interventions 72.5% Sub-Saharan Africa EU Neighbourhood Project-type 69 interventions 72.5% 69

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Helping to make African countries better places to invest and do business in

Our target is to provide support each year worth19 €300-350 million

In 2019 alone we provided €808 million

This spending was made up of technical assistance and budget support for business environment reforms in Sub-Saharan Africa and North Africa.

In doing so we exceeded for a second year in a row the target which the Africa-Europe Alliance set in 2018.

19 Set out in the Africa-Europe Alliance Communication, 2018. Target annual EU support to Sub-Saharan Africa, 2018-20.

68 68 EFSD OPERATIONAL REPORT 2019 4. PROGRESS WITH THE OTHER PILLARS 69

These figures are based on the narrow For a one-page summary of the investment definition of ‘investment climate’. This refers climate, please visit ec.europa.eu/eu-eip only to its main driver, the business environment, which has 10 dimensions: For more details, please see indicator 3.5 business simplification of the EU Results Framework, available at: business tax policy and administration https://europa.eu/capacity4dev/sites/ investment policy default/files/3.5_-_investment_ land and property rights climate_-_290527.pdf trade regulation and policy financial markets commercial justice and dispute resolution labour law and employment policy infrastructure policy and regulation energy policy and regulation. New handbook In 2019, we distributed a new handbook The investment climate also includes: on improving the investment climate with macro-level drivers support from the EU. It: ­ – macroeconomic stability summarises the conditions needed to – political stability develop a thriving investment climate – – governance and the rule of law and the main challenges in doing so human-centred drivers describes how the EU can work with EU ­ – human development Member States and partners in each – innovation. country to help the government improve the investment climate.

Helping to make African countries better places to invest and do business in

Our target each year is to provide investment climate support in Africa worth €300-350 million

In 2019 alone we provided

21 €808 million. Jeannette Ramarisoa Farm owner, Madagascar In doing so we exceeded for a second year in a row the target which the Jeannette recently benefited from Africa-Europe Alliance set in 2018. EU-backed investment climate support. Watch her story at 21 Target set out in the Africa-Europe Alliance Communication, 2018. EU support comprises technical assistance and budget support for business environment reforms in North and Sub-Saharan Africa. ec.europa.eu/eu-eip

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Annexes

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EFSD blending projects approved in 2019 A. Blending projects SUB-SAHARAN AFRICA

Continental Impact The Creative Enterprise Action Fund will Private sector development encourage a better understanding of the CCI Creative Enterprise Action Fund market and highlight investment opportunities in Africa and the Caribbean. Total project cost: €23.4How million much had we approved for projects, EU contribution: €5.8 million including technical assistance,The companies in 2019? active in the CCI sector will be Lead finance institution: Proparco offered technical assistance to reinforce their Type of support: technical assistance, impact and chance of success. A guarantee guarantees dedicated to investments in CCIs will be proposed to investment funds in order to encourage and unlock investment. Situation The cultural and creative industries (CCIs) have become major drivers of economies and trade Continental strategies in both industrialised and developing countries, representing around 3% of the world’s Private sector development gross domestic product and 30 million jobs. REGMIFA - Cultural and Creative Financing Programme for Africa Culture is acknowledged as a driver and enabler of sustainable development and an inherent part Total project cost: €24 million of human development. It enhances social EU contribution: €8.4 million cohesion, cultural diversity and inter-cultural Lead finance institution: Kreditanstalt für dialogue. Culture influences income generation, Wiederaufbau (KfW) job creation and export earnings. Type of support: equity, technical assistance

Goals The project aims to enhance the knowledge Situation and risk perception of financial institutions and The Regional MSME Investment Fund for investors towards the CCIs, which are still Sub-Saharan Africa (REGMIFA) is a debt fund considered new and risky. It also aims to increase that finances micro, small and medium the funds available for these enterprises and enterprises (MSMEs) in Sub-Saharan African broaden access to finance to CCIs. The project countries (SSA) through financial intermediaries. will provide long-term loans and risk-sharing More than USD 500 million in REGMIFA funding solutions to support local financial institutions. has been invested over the past 9 years through 80 partner financing institutions or financial intermediaries in 24 countries, benefitting an estimated 1.5 million end-borrowers.

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All the financial intermediaries financed by Situation Situation Situation REGMIFA are private companies, non-profits or With more than half of Sub-Saharan Africa’s Rural populations in Burkina Faso lack access Burkina Faso’s electricity sector relies heavily non-government organisations. REGMIFA’s population under the age of 25 and 13 million to sustainable and affordable energy, instead on thermal energy. 90% of the land-locked mandate covers Sub-Saharan Africa and the young Africans joining the labour market every relying on the use of biomass, kerosene, diesel country’s energy is thermal which is insufficient, intervention will tackle markets across the region. year, developing labour-intensive sectors is and batteries to meet their energy needs. The expensive and emits CO2. Individual country selection will depend on the imperative. Government of Burkina Faso hopes to reach a presence of a large enough creative sector and The textile apparel and accessories (TAA) rural electrification rate of 30% by 2027. Only 640 out of 7 945 districts are electrified. the presence of financial intermediaries that are industries face many of the same challenges as Demand increases every year and the eager, capable and have the potential to serve the continent’s other creative and cultural trades. Goals inadequacy and unreliability of the supply leads MSMEs in the creative sectors. These include a lack of modern textile production The project’s objective is to increase the many households to resort to individual solutions facilities, limited access to industrial production electricity access rate in 100 localities such as solar panels. For companies, the use of Goals and financing, skills and training shortages and nationwide by connecting 150 000 households a generator is essential and drastically increases The project will fund the cultural and creative poor overall infrastructure (water, waste, energy, to solar mini-grids and to stand-alone solar kit production costs. sectors in Sub-Saharan Africa through REGMIFA, ports, roads, customs etc.). systems. In doing so, the project seeks to support disbursing €36 million in loans over the first the development of very small- and medium- Goals 5-7 years of implementation. Goals sized enterprises (SMEs) in rural areas, as well The project’s objective is to reinforce and extend The project will leverage key opportunities in as to reduce CO2 emissions. distribution networks as well as to support the It aims to provide technical assistance to the fashion and creative industries to support connection of households and companies to the The rural electrification project is part of Burkina network. It will prioritise under-represented 32 leading financial institutionsHow much (FIs) had in Africa, we approved the forgrowth projects, of women and youth-owned SMEs enabling them to finance creative activities in the African fashion industry. Through a Faso’s wider Yeleen programme. The Yeleen groups and regions. that are structurally sustainable, as well as to partnership with an existing investment fund, programme aims at contributing to economic enhance related credit risk and risk management the Fashionomics project will enhance the global growth and job creation through improved access The network densification project is part of frameworks, improve the includingavailability technical of finance assistance, web presencein 2019? of Africa’s creative companies. to sustainable, reliable and clean energy. Burkina Faso’s wider Yeleen programme. The and contribute to market intelligence for cultural It also seeks to support the African TAA industry Yeleen programme aims at contributing to and creative industry finance. by providing market research and advocacy Impact economic growth and job creation through resources. The project will provide electricity access to improved access to sustainable, reliable and approximately 945 000 inhabitants of Burkina Impact clean energy. Faso, nearly 5% of the country’s population. More than 20 000 MSMEs active in cultural Impact and creative activities are expected to receive The cultural and creative and TAA industries, Impact This will contribute to the development of the funding or training during the first four years of with the right support, could create 25 million The project will facilitate access to energy agricultural sector and to rural employment. In the programme. The project will contribute to job jobs over the next decade. Using Africa’s diverse services for communities at affordable prices. the regions where mini-grids and solar kits exist, creation and innovation in the field of cultural cultures and creativity as a unique selling point, Access to energy will improve living standards clean energy will replace kerosene and biomass, and creative industry finance, by raising the TAA sector will also be well positioned to while promoting the development of small supporting climate change action by reducing awareness of its potential. support thriving new businesses, improve skills, businesses requiring electricity. accelerate economic growth, enhance regional CO2 emissions. The project will help to avoid the integration and boost exports. emission of 37 500 tonnes of CO2eq per year. Continental Burundi, Zambia Burkina Faso Private sector Burkina Faso Transport Transport Corridor Development Fashionomics Africa Energy Energy Yeleen – Network Densification Project on Lake Tanganyika, Total project cost: €66.7 million Yeleen - Rural Electrification Phase 1: Rehabilitation of EU contribution: €4.8 million Project Total project cost: €45.6 million Bujumbura Port Lead finance institution: African Development EU contribution: €8.7 million Bank Group (AfDB) Total project cost: €74.6 million Lead finance institution: Agence Française de Total project cost: €135.3 million Type of support: equity, technical assistance EU contribution: €6.3 million Développement (AFD) EU contribution: €20.2 million Lead finance institution: African Development Co-financiers: African Development Bank (AfDB), Lead finance institution: African Development Bank (AfDB) Government of Burkina Faso Bank (AfDB) Type of support: investment grant, Type of support: investment grant, Co-financiers: partner countries technical assistance technical assistance Type of support: investment grant, technical assistance

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Situation Cameroon Côte d’Ivoire Côte d’Ivoire Lake Tanganyika is located between Tanzania, the Democratic Republic of Congo, Zambia and Energy Energy Energy Burundi. The lake links the north-south and Cameroon Rural Electrification Sustainable Use of Natural Rural Electrification central cross-border corridors and, given its Project Resources and Energy Finance geographical location in eastern and southern Total project cost: €25.6 million Africa, has significant economic potential. There in Côte d’Ivoire (SUNREF) Total project cost: €206.1 million EU contribution: €11.5 million are several ports on the lake, the most important Lead finance institution: Agence Française EU contribution: €16.2 million Total project cost: €37.8 million being Bujumbura (Burundi) and Mpulungu de Développement (AFD) Lead finance institution: European Investment EU contribution: €2.5 million (Zambia). Type of support: investment grant, technical Bank (EIB) Lead finance institution: Agence Française assistance Transport across the lake is currently hampered Co-financiers: Government of Cameroon de Développement (AFD) by inadequate port infrastructure, facilities and Type of support: investment grant, Co-Financiers: Government of Côte d’Ivoire frameworks. The existing port at Bujumbura was technical assistance Type of support: technical assistance, investment grant Situation built in the 1950s and has not been modernised. The Government of Côte d’Ivoire aims to increase As a result, the port will not be able to meet Situation national electricity coverage from 39% in 2016 future demand or serve as a regional hub. to 77% by 2020. The national programme for The overall electricity coverage rate in Cameroon Situation rural electrification (PRONER), adopted in 2013, is close to 90%. However, this rate masks wide With annual population growth of 2%, Goals aims to ensure that all localities with more than How much had we approveddisparities for projects, within the county. In fact, the coverage greenhouse gas emissions in Côte d’Ivoire will The main objective of the project is to contribute 500 inhabitants are connected to electricity by including technical assistance,in underserved in 2019? areas is only close to 50%. have increased by more than 44% per capita to the economic growth of Burundi and Zambia 2020, and the whole country by 2025. At the end Access to electricity is particularly limited in between 2014 and 2030. Only 18% of the and improve the living conditions of people living of 2017, 4 500 of the 8 000 localities with more around Lake Tanganyika, by increasing the rural areas. country’s energy mix is currently renewable. than 500 inhabitants in Côte d’Ivoire were capacity and efficiency of the ports of Bujumbura electrified, representing a coverage rate of 56%. (Burundi) and Mpulungu (Zambia). It also aims to Goals The development of renewable energy is The project aims to address electricity supply The targets were delayed in part due to delays in support trade between the countries bordering hindered by the maintenance of a cheap grid constraints in selected underserved rural project implementation, as well as insufficient Lake Tanganyika, and with other countries such electricity price, enabled by a low cost, high- regions of Cameroon with low access rates funding. as Rwanda, Uganda and southern Sudan, through carbon production system. The absence of an (which includes the Far-North, North, Adamawa, multimodal links. incentive to implement energy efficiency North- West, and the East regions), laying the measures has made profitable investments in Goals The main objectives of the project are to improve foundations for better household electricity renewable energy difficult to achieve. As a result, Impact access to electricity through rural electrification access and improved industrial productivity and tariff increases have been applied to companies The project will help unlock the region’s potential and to increase the socio-economic impact of for multimodal transport to provide affordable new income-generating opportunities. It supports in Côte d’Ivoire every year since 2015. the Government of Cameroon’s objective to access to electricity on health, education and and environmentally friendly maritime transport economic development. This will be achieved become an emerging economy by 2035. Goals linking the Northern Province of Zambia and through supporting the acquisition and proper The SUNREF programme will create access to Burundi. As such, the project will stimulate the use of electrical equipment. expansion of trade in a range of agricultural, One of the key constraints to scaling up access affordable green technologies, contributing to manufactured and fishery products, thereby in rural areas is beneficiaries’ inability to pay sustainable economic development and a the initial connection fee. Development of a pilot reduction in the causes of climate change and Impact increasing tourism and other economic activities. The project will help to provide access to public-private partnership for decentralised rural environmental damage. SUNREF aims to increase electricity for approximately 22 000 rural electrification and the establishment of a fund the competitiveness of the private energy sector households. By increasing the availability of to help finance connection costs will help to through green investment financing. This will electrical equipment and improving access to overcome this. enable banks, businesses, suppliers and electricity, the project will help to speed up manufacturers to harness the opportunities economic development in rural areas and Impact presented by green technologies. The project will support the electrification of rural contributes hence to the implementation of PRONER. localities and will strengthen existing networks to Impact improve the quality and reliability of supply. The The environmental impact of SUNREF will be electrification of close to 300 new localities in significant. The country will save 40 GWh in selected rural areas will serve a population of energy and 25 kilotonnes in CO2 emissions per approximately 600 000 people, including in the year. Adamawa and North regions.

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Kenya institutions in the project area, as they will have Impact support the water sector with resource improved access to markets and social facilities. Project investments will contribute to Kenya’s management, improving water services and Transport Improved road safety and the creation of direct low-carbon development ambitions. By climate change adaptation. Malindi-Lunga Lunga/Horohoro – and indirect job opportunities for the local optimising the operation of the electricity grid, communities, are other benefits of the project. the project will reduce the cost of energy for Impact Begamoyo Road Project: Phase 1 all Kenyans and improve the reliability of the The project will give about 280 000 people electricity supply, while strengthening the access to improved drinking water and 20 400 Total project cost: €228 million Kenya national economy. A better electricity network people will benefit from improved sanitation EU contribution: €30.7 million will go a long way towards ensuring the success services. Furthermore, support to the water Lead finance institution: African Development of the Kenya’s ambitious rural electrification sector could enable the national water operator Bank (AfDB) Energy Reinforcement of the Electricity policy. to more than double its annual water sales by Co-financiers: Government of Kenya 2024. Type of support: investment grant, Transmission Network technical assistance Lesotho By expanding water supply and improving Total project cost: €114.5 million sanitation, the project will increase access to EU contribution: €7 million basic socio-economic infrastructure in Lesotho, Situation Lead finance institution: Agence Française Environment Lesotho Lowlands Water positively impacting citizens’ health and living The Bagamoyo – Horohoro/LungaLunga – Malindi de Développement (AFD) standards while strengthening resilience towards Road (454 km) is a strategic component of the Type of support: technical assistance Development climate change. East African transport corridorsHow much network, had we approved for projects, connecting Kenya and Tanzania including along technical the coast assistance, in 2019? Total project cost: €200.3 million and providing a link between the central and Situation EU contribution: €41 million northern corridors, the region’s most important The Kenyan power sector has struggled with Lead finance institution: European Investment Madagascar trade routes. a structural supply crisis. Since the 2000s, Bank (EIB) changes to the sector have enabled the country Co-financiers: Government of Lesotho Environment Goals to connect a huge number of households to the Type of support: investment grant, Jirama Water III Phase I of the Multinational Malindi – Lunga grid, extend and strengthen the transmission technical assistance Lunga/Horohoro – Bagamoyo project will involve network and become a symbol of the emergence Total project cost: €74 million upgrading 54km of road along the coast of renewable energies in African countries. EU contribution: €30 million (connecting Mombasa, Mtwapa and Kilifi). Situation Lead finance institution: European Investment The opening of electricity production to private 15% of Lesotho’s population do not have access Bank (EIB) The project aims to strengthen domestic and competition and the introduction of a tariff to tap water. The lowlands region, which includes Co-financiers: Government of Madagascar cross-border trade along the East African coastal system that reflects the real costs of production the more populous, less mountainous western Type of support: investment grant, corridor by investing in physical infrastructure have considerably improved the sector’s and southern parts of the country, currently technical assistance (bridges, drainage structures, junctions and foot performance. suffers from severe water shortages. Meanwhile, bridges, road safety features, environmental increasing droughts have caused migration from and social mitigation measures and social Goals rural to urban areas, putting further pressure on Situation complementary activities, such as the The purpose of the project is to support Kenya’s water infrastructure. Madagascar has one of the highest poverty construction of roadside markets). The project economic development by improving the rates in the world, with more than 70% of its will also deliver a trade and transport facilitation reliability and efficiency of its electrical system A reliable water system is also vital for the population living on less than USD 1.90 a day. study in order to identify barriers to the free flow and facilitating the penetration of renewable garment and textile industry and light- The political and governance crisis that affected of goods, services and people, as well as how to energies. The project aims to enable automated manufacturing firms. Water scarcity constitutes a the country from 2009 to 2013 has contributed overcome them. management of the power transmission grid for major impediment to development and inclusive significantly to the deterioration of basic better security, reliability and performance. growth. infrastructure. Impact The improved road corridor will lower vehicle This involves strengthening the network, Goals Only 52% of Madagascar’s residents have access operating costs and travel times and improve improving the quality of service between The main objectives of the project are to give to clean water. Since the 2009 coup, there has trade and regional integration along the corridor. Mombasa and Nairobi, and strengthening the Lesotho’s citizens access to safe drinking water been no significant investment in the water The main beneficiaries of the project will be local Kenya Electricity Transmission Company’s and basic sanitation, in line with the country’s sector, during a period of rapid population communities, enterprises and trading entities, capacity. Vision 2020 strategy. The project will also growth. Expanding access to safe water will help importers, exporters, private and governmental to tackle a major development bottleneck.

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Goals Goals Goals Goals The main objective of the project is to strengthen The aim of the SUNREF programme is to support The main objective of the Multinational Nacala This project will rebuild Blantyre Airport’s runway and improve the drinking water system of access to affordable green technologies, to drive Road Corridor Development Project is to provide to International Civil Aviation Organisation (ICAO) Antananarivo and its periphery, in terms of the development of a sustainable economy Malawi, Zambia and the interior of Mozambique standards and regulations and will upgrade its service quality and availability. and tackle the causes of climate change and with improved road transport links and services safety related infrastructure and facilities. The environmental harm. Through providing access to the port of Nacala and along the corridor, thus measures will be essential in supporting the This involves strengthening the region’s drinking to green investment financing for enterprises, improving the accessibility of communities to ongoing safe operation of aircraft and in water production and distribution capacities, SUNREF aims to increase the competitiveness markets and social services. maintaining the availability of safe and efficient improving access to drinking water and updating of the private energy sector and empower banks, access to air transport in Malawi. The project the institutional framework for water provision in businesses, suppliers and manufacturers to This particular part of the project will involve will also support th order to guarantee the sustainability of the harness the opportunities presented by a green rehabilitating a 55km road along the Nacala service. revolution. Road transport corridor and constructing a Impact one-stop border post between Malawi and Improvements at Blantyre will help to ensure Impact Impact Mozambique. It will contribute to the Malawi the long-term future of the airport, ensuring it The project is expected to increase the region’s A sustainable green market will reduce growth development strategy, which identifies remains safe for all passengers and attractive to drinking water production and treatment capacity dependency on raw materials and improve transport as one of six key sectors to be regional and international airline operators. The by around 100 000 cubic metres a day, as well energy supplies. The project will also contribute developed. project will help to avoid a deterioration in the as increase storage capacity by about 8 000 to job creation, by encouraging economic quality of air transport and safety, which could cubic metres. The existing network of pipes will stakeholders to invest in sustainable energy and Impact place passengers at risk or lead to the closure of be extended by 140 kmHow and 40much km ofhad old wepipes approved to provide for projects, new technical and financial services. The project will increase trade competitiveness including technical assistance, in 2019? the airport/reduction in available services. It will will be renovated. This will result in improved The development and introduction of low carbon in Malawi and surrounding regions by reducing also improve the ability of relevant authorities access to drinking water supply for some energy production processes will reduce the the costs of transporting imports and exports. to undertake long-term planning and to better 850 000 inhabitants of Antananarivo and energy sector’s environmental footprint. By improving transport in the region, the country identify development projects. the surrounding area. will be able to achieve an efficient and affordable transport system. Developing infrastructure will Malawi also help to unlock the private sector’s potential Mauritius Madagascar and to champion gender equality and sustainable Transport growth. Transport Energy Multinational Nacala Road Corridor Rodrigues Airport Development Sustainable Use of Natural Development Project Phase V Resources and Energy Finance in Malawi Project Total project cost: €53.8 million Madagascar (SUNREF) Total project cost: €106.6 million EU contribution: €18.8 million Transport EU contribution: €16.1 million Total project cost: €40 million Lead finance institution: African Development Blantyre Airport Rehabilitation Bank (AfDB) Lead finance institution: Agence Française EU contribution: €3 million de Développement (AFD) Lead finance institution: Agence Française Co-financiers: Government of Malawi Total project cost: €64 million Type of support: investment grant, EU contribution: €17 million Co-financiers: Government of Mauritius de Développement (AFD) Type of support: investment grant, Type of support: technical assistance technical assistance Lead finance institution: European Investment Bank (EIB) technical assistance Co-financiers: African Development Bank (AfDB), Situation Situation Government of Malawi Situation Despite significant potential for the production The cost of transportation is high in Malawi, Type of support: investment grant, Rodrigues island is located 560km north-east of renewable energy, energy in Madagascar relies due to poor infrastructure, long distances to technical assistance of Mauritius. Owing to its remote location, air heavily on high-carbon processes. At the same the seaports and long processes at borders and transport is vital to the island. Rodrigues’s sole time, access to energy is extremely low (15% ports. This contributes to the increased price runway can only accommodate small aircraft. access rate, of which 5% in rural areas and 51% of imports and exports and reduces Malawi’s Situation Furthermore, depending on weather conditions, in urban areas). The lack of access to reliable competitiveness in international and domestic Blantyre as the commercial and industrial centre electricity at a reasonable price remains one of trade. of Malawi has one of the country’s main airports. the length of the runway may be insufficient the main obstacles to local economic growth. It links the landlocked country to southern and to accommodate fully loaded aircrafts. These central Africa and to the rest of the world. As hazards regularly lead operators to limit the such, it also has an important role in facilitating loading of aircrafts or to postpone flights. An regional trade. extension of the current runway to accommodate

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larger aircrafts is not feasible, for environmental Situation Mozambique Impact and technical reasons. Mozambique’s agricultural sector has seen By implementing the first successful renewable annual growth of 6%, on average, since 2005, Energy energy tenders, the PROLER project will enable Goals and approximately 97% of its activities are PROLER+: Support to EDM to EDM to increase the penetration rate of The only option for providing a safe, efficient, undertaken by small farms. The construction of a renewable energy projects in Mozambique, fully reliable and affordable air transport facility structured road network along the Nacala Road Develop Renewable Energy allowing the business environment in the that will meet and contribute to the future social corridor is an opportunity to further expand trade Projects under PROLER country’s renewable energy sector to mature. and economic development of Rodrigues Island is and agricultural enterprises in Mozambique, as it to build a new runway within the same airport provides links with both Malawi and Zambia and Total project cost: €136.3 million By supporting innovative public-private compound. crosses a very fertile zone with a high potential EU contribution: €27.3 million partnership schemes, PROLER+ will encourage for agriculture. Lead finance institution: Agence Française de the development of the tools and competencies The main objectives of the project are to Développement (AFD) required to effectively manage and unlock the strengthen the national, regional and Goals Type of support: investment grant, development of upcoming independent power international connectivity of Rodrigues Island, The main objective of the Multinational Nacala technical assistance producers (IPPs) in Mozambique. By maximising to contribute to its social and economic Road Corridor Development Project is to provide the success of tenders under the PROLER development, to expand the island’s tourism Malawi, Zambia and the interior of Mozambique programme, an additional 240 000 of industry and to improve airport safety. with improved road transport links and services Situation Mozambique’s inhabitants will benefit from to the port of Nacala and along the corridor, thus Mozambique is experiencing increased demand clean energy. Impact improving the accessibility of communities to for energy in tandem with its economic The project will bring socialHow and much economic had we approvedmarkets for projects, and social services. development. Large areas of the country are including technical assistance, in 2019? benefits by increasing air freight and air poorly-served by the energy sector and need Nigeria passenger capacity on the island. A safe and This particular part of the project will complete energy to trigger their development. Only 29% efficient air transport facility will mean better the financing for the road stretch Malema – of the population was connected to the grid in connectivity and may lower travel times and lead Cuamba in Mozambique, including the 2019. Energy to cost savings for consumers and businesses. construction of a one-stop border post. Northern Corridor - PASSEN The frequency of flights to and from Rodrigues While the transformation of the energy sector will be reduced by using larger aircrafts, resulting Impact has become increasingly urgent, large-generation Total project cost: €247.7 million in a reduction in greenhouse gas emissions. An The project will reduce transportation costs along projects in the sector are long, complex and EU contribution: €25.7 million efficient air transport facility is also expected to the Nacala Road corridor. Increased cross-border costly to develop. Electricidade de Moçambique Lead finance institution: Agence Française de support the diversification of the economy and to trade among micro, small and medium-sized (EDM), an energy company, has to meet fast- Développement (AFD) contribute to sustainable new jobs and economic enterprises (MSMEs) and improved road growing demand but is unable to attract Co-financiers: Government of Nigeria growth. management bring improved regional integration international finance and private developers. Type of support: technical assistance, in the Southern Africa Development Community investment grant (SADC). Goals Mozambique The PROLER programme aims to replace the It will strengthen the economy in Malema and national government’s direct concessions for Situation Transport Cuamba, through better road accessibility and solar electrification with a public tender process, Providing an efficient electricity system for a Multinational Nacala Road Corridor increased mobility. The project will also lead to supervised by EDM. With the support of the population of more than 180 million people is new jobs through trading opportunities for men European Union and the French Development one of Nigeria’s biggest challenges. The country’s Development Project Phase I and women along the Nacala Road corridor. Agency, EDM will identify an area to be electrified economic recession began with the sharp decline based on the best technical and financial in oil prices in 2014. It continued with high Total project cost: €239.5 million proposals. inflation and a weakening of the national EU contribution: €25 million currency. Following an accumulation of losses, Lead finance institution: African Development the country’s energy sector faces major Bank (AfDB) The main objective of the PROLER project is to challenges in strengthening governance, Co-financiers: Government of Mozambique provide Mozambique with access to clean energy improving infrastructure and ensuring Type of support: investment grant, services at the lowest possible cost. It aims to commercial viability. technical assistance increase the share of renewable energy by creating an additional 120 megawatts in renewable capacity. The increased electricity Aside from one large wind farm, no major production will benefit 240 000 people. renewable energy plant has been connected to the national grid yet. Furthermore, gas pipeline infrastructure is inadequate in meeting energy

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demands. As a result of the unstable energy Goals Goals By focusing primarily on small and medium supply, many end-users have reduced their The project aims to improve the quality of The project aims to provide the Isingiro district’s sized enterprises (SMEs) in the agriculture sector, reliance on the grid by moving to diesel-powered coastal waters in the Hann Bay, by reducing the communities, including its refugee settlements, the project aims to increase the participation of generators. discharge of untreated industrial and domestic with access to a clean and sustainably managed farmers in sustainable, climate-resilient, market- wastewater. The project will enable industry to water supply. The project will also support the integrated, nutrition- and gender-sensitive Goals connect to the wastewater network and introduce development of accompanying sanitation practices, thereby reducing levels of rural The project aims to create low-carbon economic a new sanitation charge. services. poverty. growth by improving the quality of the energy transmission network in Nigeria and supporting The creation of a pollution tax for manufacturers Impact Impact the development of a regional electricity market who fail to connect to the network will incentivise The project will provide water and sanitation The project is expected to improve the capacity under the West African Power Pool (WAPP). adoption. The project will also connect services to host and refugee communities, of agricultural value chains to contribute to Investments in transmission are required, not households to the sewage system and provide benefiting 55 000 households, including 20 000 sustainable, inclusive growth and economic only to achieve the necessary capacity and for better domestic facilities, including households in refugee settlements. development in Zambia. By increasing the reliability, but also to acquire the technologies washbasins, showers and toilets. availability of appropriate products and banking needed to ensure the safe, ongoing management In addition, the project aims to help the processes in the agriculture finance sector, the of the system. Impact government to fulfil its humanitarian and project will demonstrate the benefits of By improving the quality of water discharged development goals and will help to improve the agriculture value chain projects. Impact into the Hann Bay, the project will help to restore health and wellbeing of the district’s population. The project will support inclusive and sustainable the ecosystem and will reduce water resource growth in Nigeria. The abilityHow muchto source had power we approvedcontamination for projects, and the associated risks to public Zambia, Tanzania from the WAPP market will including increase technicalthe security assistance, health. in 2019? Zambia of supply and provide for better integration of Energy renewable energy. Through the construction of Women are likely to be among the main Agriculture Zambia-Tanzania Power regional interconnection infrastructure and the beneficiaries of improvements to domestic Agriculture Value Chains development of an energy market, the project sanitation systems. For example, the provision Interconnector (ZTPI) - Tanzania will help to improve trade in the energy sector. of facilities, such as toilets, showers and wash Total project cost: €105 million section basins will lead to improvements in menstrual EU contribution: €14.9 million Total project cost: €456 million health and hygiene. Lead finance institution: European Investment EU contribution: €30 million Senegal Bank (EIB) Lead finance institution: Agence Française Type of support: guarantee, de Développement (AFD) Environment Uganda technical assistance Remediation of the Hann Bay Co-financiers: Government of Tanzania Environment Type of support: investment grant, (Dakar) technical assistance Isingiro water supply and Situation Total project cost: €109.2 million sanitation improvement project Zambia is among five countries with the highest levels of income inequality in the world. While EU contribution: €14.6 million Situation there have been significant reductions in urban Lead finance institution: Agence Française Total project cost: €68.5 million The current electricity infrastructure in Africa is depravation recently, around 77% of the rural de Développement (AFD) EU contribution: €8.5 million not meeting the needs of the growing population population still live in poverty and the income Co-financiers: Government of Senegal Lead finance institution: Agence Française and the diversifying economy. The integration gap between cities and agricultural communities Type of support: investment grant, de Développement (AFD) of regional power systems such as the Eastern is growing. technical assistance Type of support: investment grants, Africa Power Pool (EAPP) and the Southern Africa technical assistance Power Pool (SAPP) will increase power supply Goals security, lower average generation costs and The project aims to support the Government of Situation reduce the financial and economic burden Zambia to improve rural livelihoods by reducing Wastewater discharge into the Hann Bay has Situation imposed by droughts and seasonal fluctuations poverty and malnutrition. It aims to address increased in recent years, due to population and Uganda currently hosts approximately 1.2 million on many hydropower dependent energy sectors market failures in agricultural value chains by industrial growth in the area. Dakar urgently refugees. In Isingiro (one of the country’s 14 in the region, including Tanzania. needs infrastructure to treat industrial effluent, districts responsible for hosting large refugee providing access to local banks in the private and secondary wastewater treatment networks populations) there are severe water shortages. sector, and by strengthening their capacity to to connect industry and households to the Only 37% of the district’s population have access issue finance. sewage system. to safe drinking water.

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Goals The main objective of the Tanzania section of the Zambia-Tanzania Power Interconnector (ZTPI) project is to establish cross-border transmission capacity between the Southern African Power Pool and the Eastern African Power Pool.

At the same time, it will strengthen Tanzania’s institutional capacity for regional power trade. In EU NEIGHBOURHOOD addition, the project aims to reinforce and extend the power transmission capacity to unserved parts of the southern and western regions of Regional – EU’s Eastern Neighbourhood opportunities), improve the availability and Tanzania, which lack access to affordable and attractiveness of long-term funding for business, reliable power. Private sector development provide more local currency funding for firms EU4Business - SME and to promote green technologies. Impact ZTPI will benefit the relevant countries by Competitiveness Programme in Impact diversifying electricity generation sources and Eastern Partnership Countries The project will provide access to business and reducing costs. Until the ZTPI is fully established technical expertise, local currency financing and and operational, the 620kmHow newmuch transmission had we approved for projects, Total budget: €306.7 million long-term financing while complementing other lines within Tanzania will alreadyincluding help technical to increase assistance, in 2019? EU contribution: €54.7 million projects which support SMEs. and improve the access to power within the Lead finance institution: European Bank for country. Reconstruction and Development (EBRD) By supporting SMEs, it will contribute to Type of support: technical assistance, economic growth and employment. The project In the south-western areas 21 000 new investment grant will also support the ability of SMEs to prepare connections to electricity will be created per year, and develop investment plans and mitigate risks, while those people already enjoying access will making investments more attractive. experience a more reliable power supply. Situation The association agreements with the EU are The EU grant will enable the project changing the business landscape in Georgia, implementation in countries most in need of Moldova and Ukraine. Designed to improve cross- support, equipping them to strengthen their border economic activities, the agreements also economies and bring about sustainable growth. put pressure on countries to be more competitive.

Large markets outside of Georgia, Moldova and Regional – EU’s Eastern Neighbourhood Ukraine benefit from increased funding, expertise and technology, causing local businesses to Transport struggle to catch-up. These countries may not be able to transition to sustainable operations in the Facility for Eastern Partnership new landscape. investment in connectivity (EPIC)

Goals Total budget: €925.1 million The project aims to support improvements in EU contribution: €22.1 million SMEs operating in Georgia, Moldova, Ukraine, Lead finance institution: European Investment as well as Armenia, Azerbaijan and Belarus Bank (EIB) which chose to upgrade their operations to meet Type of support: technical assistance EU standards. This support will contribute to engagement and increased trade between the countries and the EU. Situation Eastern Partnership countries need substantial It seeks to increase the number of investments additional financing to modernise their transport (enabling SMEs to respond to challenges and infrastructure in order to increase connectivity,

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local mobility and road safety. The countries have Regional – EU’s Eastern Neighbourhood Partnership economies. New climate technologies intermediaries to provide medium and long-term competing social and economic priorities, leaving will enable businesses to reduce their emissions local currency loans to MSMEs, while shielding them with insufficient resources to fund the full Energy, environment, private sector and transition to more sustainable practices. them from foreign exchange risks. range of investments needed. development Finance and Technology Transfer The renewable energy sector will be developed Impact Efficient regional transport systems and and barriers to renewable energy technology will The EU contribution will help MSMEs to access connectivity provide significant benefits to the Centre for Climate Change be removed. The EU’s technical assistance and the finance they need to expand their operations, EU and Eastern Partnership countries by boosting (FINTECC) financial contributions will help to create a more leading to an increase in employment trade and economic growth, while improving sustainable business landscape and generate opportunities and economic productivity. MSMEs access to services and markets. Total budget: €570.4 million public awareness of energy efficiency measures. will benefit from competitive rates to finance EU contribution: €15.4 million their projects, while being better safeguarded Goals Lead finance institution: European Bank for against foreign exchange risks. In addition, The EPIC project will establish better and more Reconstruction and Development (EBRD) Regional – EU’s Southern Neighbourhood reducing the risks associated with local currency sustainable transport links, to improve Type of support: technical assistance, financing will stimulate economic growth in all connectivity both within the Eastern Partnership investment grant Private sector sectors. and between the Eastern Partnership countries MSME Local Currency Initiative and the EU. It will accelerate the preparation and Situation implementation of priority infrastructure Total budget: €296.4 million Regional – EU’s Southern Neighbourhood projects. All of the economies in the Eastern Partnership How much had we approvedregion for use projects, large amounts of energy. Ukraine’s EU contribution: €10.5 million Lead finance institution: European Investment Private Sector It will help projects that can including improve technical road safety, assistance, use of in energy 2019? is one of the highest in the world. Armenia, Azerbaijan, Belarus and Moldova’s Bank (EIB) SEMED Green Economy Financing enhance the mobility of goods and people, save Type of support: investment grant travel time and decrease vehicle operating costs. energy to GDP ratio is more than twice that of Facility The supported projects will have local, global and the European Union. Total budget: €261.8 million environmental benefits. The project will improve Situation low-carbon transport systems through the This reflects inefficient energy use, as well as EU contribution: €35.5 million climatic and structural economic factors. If the Financial systems in the EU Neighbourhood Lead finance institution: European Bank for development of a railway, ports and inland face challenges that limit the financial resources waterways. region’s countries were to use energy and Reconstruction and Development (EBRD) renewable sources as efficiently as EU countries available to enterprises. There is insufficient local Type of support: technical assistance, investment, and economic uncertainty reduces investment grant Impact do, overall primary energy consumption would be reduced by at least three times. the banking sector’s willingness to support The EPIC project will generate and implement businesses. Micro, small and medium-sized a range of projects with positive social impacts. enterprises (MSMEs) find it especially hard to The population will benefit from improved access Goals Situation The Finance and Technology Transfer Centre access essential finance in the early stages of Jordan, Lebanon and Tunisia are experiencing to transportation services and a reduction in their development. travel times. Meanwhile, operators will for Climate Change (FINTECC) project provides steep increases in energy consumption and significantly reduce their maintenance costs. assistance and incentives to enable innovative water stress due to population growth, inefficient climate technologies to be introduced, marketed Goals consumption practices and climate change. The project will contribute to improved transport The initiative aims to make local currency networks that will lead to a low-carbon economy and disseminated in the market. This supports All three countries rely heavily on expensive the transition to more sustainable businesses. financing available to MSMEs in the EU and inefficient energy imports. Water resources and sustainable growth and development Neighbourhood (southern and eastern) in order to through increased connectivity. The EU are limited due to the area’s climate and water The project will support the adoption of climate- stimulate exports, competitiveness and business pollution. Large volumes of wastewater go contribution will provide project governance, expansions. The project will enhance the capacity technical assistance and high-level advice to friendly technologies by providing technical untreated, further limiting available water assistance and financial support. This will help of local financial institutions in local currency resources. beneficiaries. markets, reduce systemic currency risk and to reduce greenhouse gas emissions and create a more sustainable business landscape. improve much needed local currency financing at There is significant need for resource efficiency competitive prices for MSMEs. The project aims measures in the private sector, particularly at to make affordable local currency loans available Impact the residential level, amongst SMEs and in the The project will contribute to improved energy to financial intermediaries, like banks or agribusiness sector. SMEs are significant efficiency and reduce energy costs in Eastern microfinance institutions. This will enable employers in the region, but struggle to obtain

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finance and lack the technical skills to develop important North-South Road Corridor has Situation Egypt and implement energy efficiency, renewable deteriorated due to funding shortages and a The energy intensity of the Armenian economy energy and resource efficiency measures. lack of maintenance. is about 2.6 times the EU average, due to low Energy levels of energy efficiency and obsolete energy Electricity Grid Reinforcement Goals Goals infrastructure. 40% of Armenia’s potential The SEMED Regional GEFF aims to accelerate the Reconstructing and modernising the North-South energy savings can be achieved in the building Total budget: €202.4 million green economy transition in Jordan, Lebanon and Road Corridor will improve both regional and sector. EU contribution: €20.5 million Tunisia and enhance the competitiveness of the international connectivity and facilitate Lead finance institution: European Bank for countries’ private sectors, while generating a passenger and freight traffic in the region, while Most public buildings require energy efficient Reconstruction and Development (EBRD) self-sustaining market for green technologies improving road safety. The modernisation of the upgrades such as modernised windows, energy Type of support: technical assistance, and solutions. The facility aims to achieve its highway will also provide economic development distribution systems, thermal insulation and investment grant objectives by providing access to finance, opportunities for local communities across heating substations. investment grants, technical assistance and Armenia. online and offline resources developed by the Goals Situation EBRD. The project includes the construction of The project aims to rehabilitate public buildings For the past 10–15 years, the electricity sector in infrastructure (such as bridges) and upgrading to make them more energy efficient. By Egypt has suffered from a significant mismatch Impact sections of road where needed. The investment integrating renewable energy measures within between demand and investment in electricity The facility’s EU-supported financial resources project is expected to halve travel times on public buildings, the project also seeks to reduce infrastructure, which has resulted in widespread will be dedicated to initiatives that bring positive some journeys. electricity bills and emissions through energy energy shortages and fossil imports. To address environmental impactsHow (climate much change had we approved for projects, efficiency. including technical assistance, in 2019? this, the Egyptian government has approved the mitigation and adaptation) and build lasting local Impact 2035 Sustainable Energy Strategy. Expanding capacity for investing in green technologies and Implementing the project will improve Impact electricity transmission and distribution is a key solutions. The facility will promote greater regional and international connectivity and The project will improve the energy performance challenge in reaching the strategy’s objectives. financial inclusion of small and medium-sized foster economic growth in Armenia. It will also of public buildings in order to reduce Furthermore, Egypt seeks to improve its enterprises, particularly women-led businesses, improve community integration, road safety and maintenance costs through lower energy bills. electrical connections to neighbouring countries to provide equal economic opportunities and climate-resilience. Improved connectivity will The EU contribution will help with the as part of its strategy to become a regional encourage sustainable economic development. benefit economic relationships with cross-border development of sectoral skills in the field of energy hub. It will also contribute to nationwide energy countries and encourage foreign trade. energy efficiency related building renovations, efficiency improvements and better renewable and support the government and the Goals generation capacity across the target countries. Furthermore, providing high speed access to construction sector by reducing energy imports The project aims to support several key pillars of historic sites will support the growth of the and developing energy efficiency standards in Egypt’s 2035 Sustainable Energy Strategy. This tourism industry. The EU contribution will ensure Armenia. will involve introducing renewable energy Armenia the timely and efficient implementation of generators, upgrading and reinforcing the construction activities. The project will contribute to environmental electricity grid and constructing nine high voltage Transport protection and climate change mitigation by substations. Lastly, the project plans to Sisian-Kajaran Road Project Armenia making public buildings more energy efficient. strengthen the capacity of the Egyptian In addition, it will improve the security and safety (north-south corridor) Electricity Transmission Company to implement Energy of energy supply by promoting energy efficiency much needed improvements. Armenian Public Buildings Energy and the use of renewable energy sources. Total budget: €612.2 million The rehabilitation works will also pave way to EU contribution: €1.8 million Efficiency Programme Impact improvements in access for disabled people and The project will improve the security of the Lead finance institution: European Bank for seismic safety. Reconstruction and Development (EBRD) Total budget: €53.5 million energy supply in Egypt, increase power Co-financiers: European Investment Bank (EIB) EU contribution: €11.5 million generation from renewable sources and foster Type of support: technical assistance Lead finance institution: European Investment economic growth. EU contributions to the Bank (EIB) rehabilitation of the electricity grid will reduce Type of support: investment grant, the number and duration of power outages, Situation technical assistance allowing the government to gradually increase Armenia’s landlocked economy relies on its end-user tariffs to reflect the true electricity transport infrastructure, particularly its roads. generation costs. In the longer term, the project In recent years, the quality of the strategically will play an important role in Egypt’s plan to become a major energy trader in the region.

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Egypt Egypt The support for renewable and energy efficiency Georgia will contribute to long-term development of a Private sector development Education greener economy in Egypt and consequent Energy Green Economy Financing Facility II 4 E for Egypt: Excellence and reduction of carbon emissions. Energy Efficiency in Public (GEFF II) Energy Efficiency in Education Buildings Programme

Total budget: €189.9 million Total budget: €115.7 million Georgia Total budget: €130.6 million EU contribution: €24.9 million EU contribution: €13.4 million EU contribution: €25.8 million Lead finance institution: European Bank for Lead finance institution: Kreditanstalt für Water and sanitation Lead finance institution: Kreditanstalt für Reconstruction and Development (EBRD) Wiederaufbau (KfW) Khashuri Water Supply and Wiederaufbau (KfW) Type of support: technical assistance, Type of support: technical assistance, Sanitation Improvement Project Co-financiers: European Bank for Reconstruction investment grant investment grant and Development (EBRD) Total budget: €56.1 million Type of support: technical assistance, investment EU contribution: €7.6 million grant Situation Situation Lead finance institution: Agence Française Reductions in subsidies on gas and electricity One in three Egyptians under the age of 25 is de Développement (AFD) unemployed. Meanwhile, many employers cite tariffs are hurting Egypt’s industrial sectors and Type of support: technical assistance, Situation the lack of qualified workers, especially households. investment grant In 2016, fossil fuels accounted 69% of primary technicians, as a main obstacle for growing their energy consumption in Georgia. Almost all fossil How much had we approvedbusinesses. for projects, Technical school graduates still need Increased demand for water including has also technical been a assistance,to meet in 2019?the hard and soft skills necessary to fuels are imported from neighbouring countries. growing concern to the point that Egypt has been successfully integrate into the labour market. Situation However, electricity is largely generated by classified as a water scarce country. There is a Only half of the population of Khashuri is domestic hydropower. Domestic firewood is an growing need for funding to implement new Despite its huge potential in renewable energy, connected to the water supply networks and important domestic energy source for buildings. irrigation technologies and water irrigation Egypt is one of the most energy-intensive sewage systems. Water is supplied to 80% of efficiency improvements. economies in the world. As the government those having access to water networks only four Goals reduces energy subsidies, energy efficiency will hours per day and to the remaining 20% for ten The project is part of an effort to improve Goals soon become a major concern for companies, hours. The other half of the population has to the energy sector in Georgia by applying new The purpose of this support is to provide Egyptian households and public entities. The Egyptian resort to wells, springs and poorly constructed energy efficient standards in a large number businesses and individuals with access to green labour market will need skilled technicians at an septic tanks and pit latrines. Raw sewage of public buildings and improving the adoption finance from local institutions and raise intermediate level to operate renewable energy continues to be discharged into local rivers. of respective EU directives. This will contribute awareness of green technologies. The project facilities and to make the emerging market more to expanding the market for energy efficient aims to build a network for stakeholders to energy efficient. Goals buildings and enhance the capacity of the discuss the adoption of sustainable technologies The project aims to improve public health in the private sector, including construction companies, and practices, as well as an online knowledge Goals Khashuri area by providing a reliable supply of to increase the adoption of energy efficient base on green technologies. The project also The project’s main objective is to improve the safe drinking water. Additional objectives include standards in investments. The renovations will seeks to introduce institutional reforms to technical and personnel capacity of technical improving the water quality of the Kura and also extend the lifespan of buildings while establish a more favourable legal and regulatory education schools, and enable them to provide Suramela rivers and strengthening the capacity improving health, safety and comfort. framework for energy and resource efficiency in high-quality, practice-oriented technical of the national water and sanitation operator. Egypt. education. This will contribute to improving young Impact people’s employment prospects in Egypt. Impact The project will rehabilitate up to 500 buildings, Impact With the help of EU funding, the project will raise representing 12% of public buildings in Georgia, The project will have a positive impact on Impact the quality of life of 44 000 people in the many of which will be schools. The measures will With the help of EU funding, the project will greenhouse gas emissions, climate resilience and Khashuri area by improving hygiene conditions improve health and safety standards for up to improve the prospects of young students and the environment. The EU contribution is expected 150 000 people. By lowering carbon emissions, graduates in the labour market. This will and reducing waterborne diseases. The project to improve the competitiveness of Egyptian small positively impact the technical education schools will have a major impact on the environment, as the project will reduce negative environmental and medium-sized enterprises and to support the and will stimulate private sector growth. it will reduce environmental damage to rivers impacts and contribute to better air quality development of supply chains for green and open fields. Reducing the volume of pollution through a reduction in the use of fossil fuels and technologies. This will increase access to finance The project will also make the business case for entering the transboundary Kura River will also unsustainable firewood. The EU contribution will from the local financial sector, creating a virtuous renewable and efficient energy in Egypt, with the benefit the other countries it flows through – allow the country to act as a role model for cycle of growth in the demand, supply and EU contribution raising awareness about Azerbaijan and Turkey. energy efficient private and public buildings in financing of green technologies. sustainability and energy efficiency among less mature markets. technical students and the general population.

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Georgia Jordan The resilience of local communities to extreme Impact droughts and climate change will improve. The project is expected to finance 60 megawatt Private sector development Water and sanitation The project will also generate local jobs in the hours of energy storage, thus enabling an Promoting Local Currency Lending: Adapting to Climate Change construction, operation and maintenance of estimated reduction of 1 289 tonnes of CO2 water infrastructure. equivalent per annum in greenhouse gas GGF ‘L Shares’ for Georgia and Saving Water emissions. Total budget: €196.3 million Total budget: €86.7 million Jordan The project will allow for the deployment of EU contribution: €10.1 million EU contribution: €7.8 million distributed (non-centralised) energy systems, Lead finance institution: Kreditanstalt für Lead finance institution: Kreditanstalt für with the EU contribution plugging the funding Wiederaufbau (KfW) Wiederaufbau (KfW) Energy Electricity Storage Projects gap to allow for more private sector involvement. Type of support: equity Co-financiers: European Investment Bank (EIB) This will improve the reliability of electricity and Type of support: technical assistance, foster economic and social development in the investment grant Total budget: €39.4 million EU contribution: €6.4 million target areas, connecting the population with Situation associated business opportunities and improving Providing funds in the local currency is critical in Lead finance institution: European Bank for their quality of life. development finance. Local banks and monetary Reconstruction and Development (EBRD) Situation financial institutions have limited capacity to Jordan is under pressure to curb water waste and Type of support: investment grant, convert currency. Unfortunately, most foreign overuse by farmers and businesses. This problem technical assistance Jordan lenders tend to provideHow currency much that had is not we likely approved has forbeen projects, exacerbated by a surge in demand for to depreciate suddenly or includingto fluctuate technical in value assistance,water, in caused 2019? by an influx of refugees and low considerably (hard currency), forcing local rainfall in recent years. In times of drought, Situation Water and sanitation institutions to either bear the currency risk irrigation water must be rationed and farmers The European Bank for Reconstruction and North-east Balqa Wastewater themselves or put their clients in a vulnerable are provided with less than half of the water they Development (EBRD) is working with the Project situation. need, forcing them to irrigate less land. This has government and private sector in Jordan to a negative impact on incomes and leads to develop and implement energy storage systems. Total budget: €75.4 million Goals increased poverty. The most advanced of these efforts is a Li-ion EU contribution: €15.4 million The Green for Growth Fund (GGF) aims to provide battery storage system located in Irbid. Under Lead finance institution: Agence Française de local currency financing to partner institutions Goals this project, power will be imported and exported Développement (AFD) with limited capacity for currency conversion. The project aims to mitigate climate change risks from the system to the Jordanian grid, under a Type of support: investment grants This will enable partner institutions to provide and improve agricultural communities’ resilience 15-year contract with the National Electric Power loans to energy efficiency and renewable energy in the Jordan Valley. This will be achieved through Company (NEPCO). projects in Georgia. The loans support micro-, improved supply of irrigation water by reducing Situation small and medium-sized enterprises (MSMEs) the use of freshwater and increasing the use of This investment will be implemented alongside The old wastewater system in the Balqa region and will protect partner institutions and their reclaimed water on farms. In addition, a capacity building, including training to equip serves less than half of its 349 000 inhabitants. clients from foreign exchange risks. reduction in the use of freshwater for irrigation technical experts to operate the systems The population continues to grow rapidly and the will increase the volume of drinking water correctly. sewage plant is already overwhelmed, resulting Impact available in urban areas, such as Amman and in inadequate wastewater treatment and a foul Over the next 20 years, the project will inject Irbid. Goals odour in the surrounding area. €390 million worth of local currency investments The project’s main objectives are to demonstrate into renewable energy projects in the Eastern Impact and overcome risks related to electricity storage Goals Partnership region (Armenia, Azerbaijan, Belarus, With support from the EU, the proportion of in Jordan and to demonstrate the viability and The project will introduce a new sewage network Georgia, Moldova and Ukraine). With the help of blended water (i.e. freshwater mixed with treated beneficial applications of energy storage in the and treatment plant, which will collect and treat the EU and the involvement of partner wastewater) used will increase from 77% in country. the wastewater generated by communities in the institutions, these investments could support 2018 to 79% in 2020. Reduced pressure on north-east of As-Salt city in Balqa. The new plant around 43 000 loans and are expected to freshwater resources will help Jordan to meet It aims to establish a benchmark for the future will have ample capacity to treat wastewater to generate energy savings of 234.6 gigawatt hours growing freshwater needs in Amman and the deployment of electricity storage systems in the the required standards. It will be situated with per year and CO2 savings of 978 kilotonnes per north, exacerbated by the high number of Syrian EBRD countries of operation, which will be expansion in mind, enabling it to continue to year. refugees. Increasing farmers’ water supply will essential for the purpose of decarbonising energy meet demand as the population grows. stimulate economic development and foster systems. social stability.

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Impact Impact climate change mitigation, as well as health and businesses. The EU contribution will promote With support from the EU, the new treatment With EU support, the project will reduce travel safety. Such improvements will contribute to a women’s participation in business and the plant and wastewater system will have the times and road accidents in both number and longer lifespan of buildings and increase real economy by improving knowledge and providing capacity to serve local people and will be severity. The enhanced road infrastructure, estate value and comfort. development services. Increased access to advice scalable as the population grows. By eliminating together with road safety improvements, will and finance will help women-led SMEs to grow or the use of cesspits, it will safeguard the health increase connectivity and improve the business enter new sectors. and wellbeing of those using the system. climate in Lebanon. Morocco

The treated effluent will be discharged safely and Local industries, and the economy in general, will Private sector development Morocco will contribute to agricultural irrigation in the benefit from better connectivity and increased Women in Business Jordan Valley. By producing more wastewater demand for local goods and services. The project Social effluent to required standards, the project will will also have a positive impact on tourism, which Total budget: €94 million help to reduce the use of freshwater for irrigation is one Lebanon’s most lucrative sectors. Youth Employment Programme and increase the availability of drinking water. EU contribution: €10 million Lead finance institution: European Bank for Total budget: €165 million Reconstruction and Development (EBRD) EU contribution: €15.3 million Moldova Type of support: technical assistance, guarantee Lead finance institution: Agence Française de Lebanon Développement (AFD) Energy Type of support: technical assistance, Transport How much had we approvedMoldova for projects, Energy Efficiency Situation investment grant Lebanese Road Safety including and technical assistance, in 2019? Women in business are an important and Rehabilitation Total budget: €94.1 million growing segment of the Moroccan economy, but EU contribution: €15.4 million they lack access to knowledge and finance. Situation Total budget: €478.5 million Lead finance institution: European Investment In Morocco, the net rise in the number of people EU contribution: €20.7 million Bank (EIB) In Morocco, gender gaps in relation to access to reaching employment age is ten times higher Lead finance institution: European Investment Type of support: technical assistance, finance, knowledge and networks, and than the net rise in the number of job vacancies. Bank (EIB) investment grant entrepreneurship are a barrier to equitable Those worst affected by this trend include Type of support: investment grant development. Only 13% of Moroccan small and women and young people who are not in medium-sized enterprises (SMEs) have female education or employment. Situation participation in ownership, and only 25% of Expanding the private sector is difficult, Moldova’s Soviet-era public buildings have poor Situation Moroccan women are economically active. There especially for small and medium-sized heating systems. In winter, they are chronically Due to limited public resources, the maintenance is a severe credit gap for women-led SMEs in enterprises, with entrepreneurship mainly limited under-heated. Their wall-mounted boilers are not of the road network in Lebanon has been Morocco, while around 230 000 women-led to the informal economy (i.e. economic activities, fit for purpose and indoor repairs are often neglected for years. The situation has only enterprises in the country have no access to enterprises and jobs that are not regulated or needed. worsened during the recent refugee crisis. In the banking. protected by the state). Global Competitiveness Index (2017-2018), Lebanon ranks 121st for road quality, which is a Goals The project will modernise public buildings, such Goals To address this issue Morocco has adopted the major obstacle for doing business. Additionally, The project aims to stimulate the transition to National Programme for the Promotion of road traffic accident levels remain high, as schools and government buildings. The selected buildings will be renovated to become a more competitive and inclusive economy in Employment, which focuses on three areas – representing a cost of up to 5% of Lebanon’s Morocco by strengthening the economic role employability, intermediation and gross domestic product each year. more energy efficient. The project will prioritise the busiest buildings and sites of national of women-led SMEs. entrepreneurship. The programme aims to importance, which offer the greatest potential for decentralise employment policies and empower Goals This project will provide financing to women regions to tackle youth unemployment with The main objective of this project is to upgrade social impact. It will finance energy efficiency entrepreneurs, and advice and risk-sharing to custom measures. the road network, in order to improve transport measures, focusing on improvements to the financial institutions, to better assess and tackle efficiency and road safety, and create conditions walls, heating, ventilation and air conditioning. the financial needs of women-led SMEs in for economic growth. The project will rehabilitate It will also integrate renewable energy sources. Goals Morocco. The goal is to increase young people’s existing road sections in all regions and districts employability, especially among young women, of Lebanon. Impact The project will generate energy efficiency Impact by developing market awareness, providing improvements and significant financial savings. The project will provide women entrepreneurs training and implementing work experience It will reduce CO2 emissions and contribute to with increased access to finance. This will allow initiatives in three targeted regions – Rabat Salé them to turn their ventures into sustainable Kénitra, Tanger Tétouan Al Hoceima and Souss

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Massa. The project aims to stimulate sustainable Nonetheless, only 15% of total agricultural land Tunisia The prerequisites for growth will be fulfilled, entrepreneurship among young people and is irrigated, often with inefficient water use and making it easier to obtain additional credit from stimulate local administrations to implement management. In the Oriental region, more than Private sector development banks. As a result, the project will help to create employment-friendly policies. 3 000 farmers lack adequate irrigation systems. Equity Mechanism for the and sustain financial growth and employment The extreme vulnerability of Morocco’s opportunities. Impact agriculture sector to the impacts of climate Promotion of Start-Ups (ANAVA The EU contribution is expected to reduce change demonstrates a clear need for Fund of Funds) Impact regional and social inequalities by strengthening investment in climate-resilience infrastructure. With a target size of €200 million, the project the integration of young people into the labour Total budget: €100.9 million expects to indirectly finance 625 start-ups market. Through entrepreneurship, the Goals EU contribution: €15.5 million through equity or quasi-equity investments in up programme will have a positive impact on local The Saiss project aims to help preserve the Lead finance institution: Kreditanstalt fuer to 16 private equity and venture capital funds. economies by helping to create productive jobs Saiss aquifer and promote sustainable water Wiederaufbau (KfW) Approximately 10 000 jobs will be created, both (i.e. jobs yielding sufficient returns to allow a management within the Saiss plain. The project Co-financiers: AFD directly in the funds and start-ups, as well as worker and his/her dependents to live above the envisages the annual transfer of 90 to 110 Type of support: equity indirectly through spill-over effects in the poverty line). Lastly, the programme will make million m3 of surface water from the M’Dez Dam respective value chains. the country’s investments in regional ecosystems to the Saiss plain for irrigation purposes. more sustainable. Situation The Garet project, located in the Oriental region, Despite modest growth and substantial efforts Tunisia seeks to provide farmers with modern and to contain the fiscal deficit since the revolution for projects, Morocco How much had we approvedefficient irrigation infrastructure that delivers in 2011, Tunisia’s economic situation remains Education including technical assistance, in 2019? fragile. Unemployment remains high, especially on-demand water for drip irrigation, promoting Modernisation of Schools (phase II) Water and sanitation sustainable water use and mitigating the adverse for young educated graduates, women and impacts of water scarcity. people in rural areas. Access to finance and the Saiss and Garet Water general business environment continue to Total budget: €161.7 million Conservation constrain private sector investment and EU contribution: €25.2 million Additionally, it aims to strengthen the economic Lead finance institution: European Investment opportunities and social inclusion of small competitiveness, especially for start-ups and Total budget: €354.1 million SMEs. Bank (EIB) farmers, who are the most vulnerable and least Type of support: investment grant, EU contribution: €29.1 million resilient to acute water shortages. Lead finance institution: European Bank for To address these challenges, Tunisia introduced technical assistance Reconstruction and Development (EBRD) Impact ‘Start-up Act’, jointly developed by members of Type of support: investment grant, technical The Saiss project will encourage the safeguarding the private sector, civil society and the Tunisian assistance Government. The Act provides tax incentives and Situation of groundwater resources and contribute to Tunisia’s primary school population is climbing other measures to support start-ups in Tunisia. improved water governance in Morocco. With steadily (2.2% annually). As a result, the more than 3 000 farmers set to benefit from the education sector must increase school capacity. Situation The ‘Start-Up Tunisia’ Programme was launched Garet Project, the increased opportunities offered Meanwhile about 70% of schools were built Morocco experiences chronic water scarcity, to provide a framework for implementing the Act, by the improved irrigation system, together with before 1975, so many buildings and facilities exacerbated by the effects of climate change as well as to mobilise private sector risk capital the support provided by the EU’s programme, require upgrading. and unsustainable water use. The groundwater will positively contribute to job creation in the for investments in innovative start-ups . The of the Saiss water table is being rapidly reduced programme facilitates and supports the start-up agricultural sector and create economic It is estimated that the number of primary school as more and more boreholes are sunk into the ecosystem (e.g. incubators, accelerators, business opportunities in the Oriental region. children will increase by 12% between 2018 and aquifer to increasing depths. At the current angles). The ANAVA Fund of Funds (FoF) project is 2025, representing an additional 128 000 trajectory, the aquifer is expected to be depleted part of this. within 25 years and the Saiss plain transformed students. This means that 510 additional Tunisian primary schools will be needed. into a high desert plateau. Goals The objective of the ANAVA FoF project is to The critically important agricultural sector, which improve access to finance for start-ups in Tunisia, Goals The project aims to improve education outcomes accounts for 40% of jobs nationwide is especially contributing to job creation. Equity investments, by supporting the Government of Tunisia to affected. On average, 88% of annual renewable will enable start-ups to invest in their growth, improve school infrastructure, learning water resources are used for agricultural develop products and improve human capital. irrigation. environments, hygiene and sanitation.

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Impact seasonal disparities affecting the water supply, Goals trolleybus services operating over seven routes. The EU contribution will help finance 150 new while increasing storage capacity. The programme’s overall objectives are to In 2017, 37 trolleybuses were decommissioned, school buildings and 6 new school complexes, ensure the efficient distribution of drinking water taking the company from 82 trolleybuses to 45. as well as new pedagogical equipment in up to Another objective of the programme is to make in central and southern Tunisia. The programme The average age of the trolleybuses is 19 years. 150 primary schools and school transportation the water system more resilient to climate aims to renovate 15% of the drinking water in the form of 50 school buses. These will allow change and extreme weather, and to protect the network in seven governorates of Tunisia. Goals students who live far away to access school people living along the Medjerda River against The project aims to make trolleybus operations facilities. flooding. Through the renovation, the programme aims more efficient in Kherson by improving their to significantly reduce water loss and carbon coverage and accessibility. It will increase their Pedagogical interventions funded under the Impact emissions while increasing the water sector’s service speed and decrease maintenance project will help to replace discipline based on With the help of the EU, the programme will resilience to the negative impacts of climate intensity and costs, resulting in significant money punishment and control with positive, cooperative foster agricultural development and local change. and energy savings. It will also modernise fleets, classroom management in approximately 150 enterprises by improving the water supply in reduce emissions, improve the capacity of primary schools. These supported pedagogical disadvantaged regions and reducing flood risks. Impact transport services and maintain affordable interventions will be gender-equally directed The programme’s measures will improve the With the help of EU contributions, the tariffs. towards teachers, directors and other staff. living standards of approximately 7.7 million programme is expected to save 15 million cubic people (nearly 65% of Tunisia’s population) and metres of water per year, which will help to cut Impact reduce CO2 emissions through energy efficiency. CO2 emissions by 4 000 tons per year. This project is expected make the city’s Tunisia transport more efficient, improve its speed and How much had we approved for projects, The programme will directly improve the capacity of public transport, while providing Water and sanitation including technical assistance,Tunisia in 2019? living conditions of around 1.7 million people. quality services. EU support will promote the Improvement of Tunisia’s Water By improving the drinking water system, the development of clean urban transport, improving programme is expected to have a positive impact the environment and reducing toxic emissions. System Water and sanitation SONEDE Water Distribution on living conditions and to strengthen the It will also improve financial sustainability and political and social situation in the target regions. have a positive impact on public mobility in Total budget: €405.9 million Network Performance Kherson. EU contribution: €40.9 million Improvement Lead finance institution: Kreditanstalt für Ukraine Wiederaufbau (KfW) Total budget: €82.8 million Ukraine Type of support: investment grant, EU contribution: €12.4 million technical assistance Transport Lead finance institution: Kreditanstalt für Waste Wiederaufbau (KfW) Kherson Trolleybus Sub-Project Type of support: investment grant, (part of the Municipal Mariupol Solid Waste Management Situation technical assistance Infrastructure Programme) Sub-Project With only 440 m³ of water per year, per person, (part of the Municipal Tunisia has a water scarcity problem. The water Total budget: €10.5 million Infrastructure Programme) resources in the country are distributed unevenly Situation EU contribution: €1.5 million in terms of time and location. Tunisia is a water-poor country, with only 440 m³ Lead finance institution: European Bank for Total budget: €20.7 million of water resources per person, per year. A rapid Reconstruction and Development (EBRD) EU contribution: €4.7 million Wet years with severe floods, especially in the increase in water demand, due to population Type of support: technical assistance, Lead finance institution: European Bank for Medjerda valley, have caused major damage to growth and economic development, has led to investment grant Reconstruction and Development (EBRD) infrastructure and agricultural land, and pose significant over-exploitation of water resources. Type of support: technical assistance, a serious danger to the population. These are In addition, the negative effects of climate investment grant often followed by dry years with water shortages. change and extreme weather affect the Situation As a result of climate change, these extreme availability and fair distribution of water Kherson is among Ukraine’s 20 most populated weather events are becoming more frequent. resources. cities, but its aging public transport infrastructure Situation needs considerable investment and urgent In 2016, 11 million tonnes of municipal solid Goals Tunisia’s National Company for the Exploitation reforms. waste was generated in Ukraine. Despite a The project will contribute to better, more and Distribution of Water (SONEDE) is no longer steady population decrease, the waste volume sustainable water resource management by able to respond to the high water demand, due to Kherson Electrotrans is a public transport has been increasing. Landfills are where it ends introducing new storage and water transfer limited resources and a poor water distribution company in the city. Serving more than up, and 90% of the country’s sites fail to meet infrastructure. It will also reduce regional and network. 30 million passengers in 2018, it provides EU standards.

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Goals Situation Ukraine Ukraine The project will address the waste problem in The infrastructure for essential municipal the city of Mariupol (which accounts for 10% of services in Ukrainian cities is often outdated and Energy Transport Ukraine’s industrial production) by introducing a falls short of modern technical standards. Large Energy Efficiency in Small Transport Connectivity municipal waste management system. This will investment projects are rare, especially in smaller Municipalities involve constructing a material recovery facility, cities and villages. In larger cities, tariffs for Total budget: €72.9 million a new landfill and rehabilitating the existing municipal services are usually insufficient to EU contribution: €36.9 million landfill site. cover operational and maintenance costs. Total budget: €15.6 million EU contribution: €7.1 million Lead finance institution: European Investment Lead finance institution: Nordic Environment Bank (EIB) It will improve environmental and safety Goals Type of support: investment grant standards as well as the quality of waste The project’s goal is to improve the municipal Finance Corporation (NEFCO) services. It will also facilitate international best infrastructure and administration in the Type of support: investment grant, technical assistance practices and standards. Ukrainian city of Kharkiv, turning it into a model Situation municipality. The lead finance institution, Connectivity stimulates trade and investment The project will demonstrate an effective and Kreditanstalt für Wiederaufbau (KfW), uses and brings people together. The Ukrainian sustainable system which other cities can larger cities with the capacity to borrow as Situation Ukraine is one of the least energy efficient economy accounts for far more transport usage, replicate. It will rehabilitate the landfill site and regional starting points (anchor cities), in order to countries in Europe. Its economy is two to three relative to its gross domestic product, than other promote modern management, with significant reach out to the surrounding municipalities and times more energy intensive than its countries. environmental benefits. assist in their economic and social development. How much had we approved for projects, neighbouring countries, constricting Ukraine’s including technical assistance, in 2019? economic development. Ukraine’s geographic location places it at the Impact KfW’s anchor strategy aims to support the centre of international cargo routes, which has Through the project, the EU will support the Oblast Development Strategy and directly Due to high energy inefficiencies, there is a led to significant interest throughout the EU in Ukrainian government in overcoming challenges support Kharkiv in managing the influx of internal Ukraine’s cargo transit and transport potential. related to waste management and sustainable displaced people (IDPs), due to the ongoing strong demand for an increase in energy resources, particularly for electricity generation development. Pollution will be reduced, and the conflict in the East. Goals disposal capacity and efficiency/standard of the and transmission. The electricity infrastructure in Ukraine needs urgent investment and the price of The project aims to establish more sustainable waste management system improved. Impact electricity is expected to grow further. transport connections. Investing in key The project will enable water providers to infrastructure will support the movement of The project will provide Mariupol’s population improve their operations. By replacing old water people, goods, services, capital and information. with access to improved waste management pumps with new energy-efficient ones, providers Goals The project will help small municipalities in It will also promote inclusive and sustainable services and will reduce illegal waste dumping will reduce energy costs, water losses and repair Ukraine to reduce energy costs. It will invest in economic growth and social development. and incineration. expenditure, easing the burden on public finances. The new wastewater management making public buildings, such as hospitals and schools, more energy efficient. The project will Impact system will have a positive impact on the local The project will improve regional connectivity population’s health and the environment. involve rehabilitating buildings and improving Ukraine internal and street lighting, in addition to and support economic activity by reducing travel modernising air ventilation and heating systems. time and transport costs between Ukraine and Water and sanitation With a contribution from the EU, the project will its regional trade partners. Improved roads will Municipal Infrastructure also allow municipalities to save funds, which contribute to safety improvements in the they may allocate to improving living standards Impact The EU contribution plays an important role in transportation of people and cargo. Development in the area. The EU support will also aid the increasing the availability of finance to decentralisation process in Ukraine by enabling participating municipalities. This will lead to This will result in job creation, private sector Total budget: €84.8 million municipalities to focus on their new roles and improved healthcare and socio-economic investment and economic development. In EU contribution: €15.6 million responsibilities as service providers. Lead finance institution: Kreditanstalt für conditions for local communities by providing addition, the investment will reduce carbon Wiederaufbau (KfW) citizens with better, more comfortable local emissions through traffic-flow improvements. Type of support: technical assistance, medical and educational facilities. The EU grant will contribute to better investment grant connectivity, driving conditions and increased infrastructure capacity.

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All EFSD blending projects

SUB-SAHARAN AFRICA (1/4)

EU-financed Consortium Total project EU Tendering of EU financed Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status project components of the project approval marker guarantee/ institutions (€ million) (€ million) started? started? risk capital started?

Sub-Saharan Africa 2017 EDFI-Agrifi FMO Agriculture 39.74 15.60 Equity, technical assistance Implementing N/A N/A N/A

Sub-Saharan Africa 2017 Climate Investor One Yes FMO Energy 350.80 12.28 Equity, technical assistance Implementing N/A N/A N/A

Sub-Saharan Africa 2017 Transferability and Convertibility Facility Yes PROPARCO Energy 312.82 18.82 Equity, technical assistance Signed N/A N/A Design ongoing

Sub-Saharan Africa 2017 EURIZ AFD Private sector 830.45 26.45 Guarantee, technical assistance Ongoing Procurement to be launched N/A Ongoing

Sub-Saharan Africa 2017 Boost Africa EIB, AfDB Private sector 180.00 61.40 Equity, technical assistance Approved N/A N/A N/A

Sub-Saharan Africa 2018 Huruma Fund Cofides Agriculture 37.23 6.63 Equity, technical assistance Signed Procurment to be launched N/A Design ongoing

Sub-Saharan Africa 2018 Women's Financial Inclusion Facility (WFIF) KfW Private sector 88.70 10.00 Equity, technical assistance Approved N/A No No

Sub-Saharan Africa 2018 Agri-Business Capital Fund (ABC Fund) IFAD Agriculture 200.47 38.89 Equity, technical assistance Signed N/A N/A N/A

African Guarantee Fund for Small and Medium Sub-Saharan Africa 2018 AfDB Private sector 204.00 26.08 Equity, technical assistance Approved Procurement to be launched No No Sized Enterprises (AGF)

Sub-Saharan Africa 2018 Facility for Energy Inclusion (FEI) Yes AfDB Energy 1216.20 40.24 Equity, technical assistance Approved N/A N/A Ongoing

Investment grant, technical Sub-Saharan Africa 2018 Digital Energy Facility (DEF) Yes AFD Energy 324.00 23.50 Approved N/A N/A N/A assistance

Sub-Saharan Africa 2019 Creative Enterprise Action Fund Proparco Private sector 23.35 5.76 Guarantee, technical assistance Approved Procurement to be launched N/A No

REGMIFA - Cultural and Creative Financing Sub-Saharan Africa 2019 KfW Private sector 24.00 8.38 Equity, technical assistance Approved No N/A No Programme for Africa

Sub-Saharan Africa 2019 Fashionomics Africa AfDB Private sector 66.73 4.85 Equity, technical assistance Approved N/A N/A No

Projet DEFISSOL: Construction of a 25 MWc Investment grant, technical Benin 2017 solar power plant and modernisation of the Yes AFD Energy 60.85 10.35 Ongoing Awarded Under construction Ongoing assistance information system of SBEE

Investment grant, technical Benin 2017 ElectriFI country window Yes FMO Energy 16.80 5.00 Implementing N/A N/A N/A assistance

Electrical extension and densification project Investment grant, technical Benin 2018 Yes AFD Energy 55.00 14.65 Ongoing Awarded Studies ongoing Ongoing of the SBEE network (PEDER) assistance

North Core - Interconnectior 330 kV - Burkina Burkina Faso 2017 Yes AFD Energy 260.30 15.30 Investment grant Implementing Procurement to be launched Studies ongoing Ongoing Faso

Investment grant, technical Burkina Faso 2019 Yeleen - Rural Electrification Project Yes AfDB Energy 74.74 6.28 Approved Procurement to be launched No No assistance

Investment grant, technical Burkina Faso 2019 Yeleen – Network Densification Yes AFD Energy 45.57 8.70 Approved Procurement to be launched No Design ongoing assistance

Burundi, Democratic Complementary studies for the hydro-power Republic of the 2017 AfDB Energy 9.30 8.30 Technical assistance Implementing Procurement to be launched N/A No plant Ruzizi IV Congo, Rwanda

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SUB-SAHARAN AFRICA (2/4)

EU-financed Consortium Total project EU Tendering of EU financed Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status project components of the project approval marker guarantee/ institutions (€ million) (€ million) started? started? risk capital started?

Burundi, Democratic Investment grant, technical Republic of the 2018 Ruzizi III - 220 kV Interconnection Project Yes AfDB Energy 596.25 15.00 Implementing Procurement started No No assistance Congo

Transport Corridor Development Project on Investment grant, technical Burunid, Zambia 2019 Lake Tanganyika, Phase 1: rehabilitation of Yes AfDB Transport 135.28 20.16 Signed Procurement to be launched No No assistance Bujumbura Port

Construction of a bridge on the Logone river Investment grant, technical Cameroon, Chad 2017 between Yagoua and Bongor and ancillary AfDB Transport 113.75 40.95 Implementing Awarded Under construction No assistance works

Cameroon, Chad 2018 Electricity interconnection project Yes AfDB Energy 398.95 30.00 Investment grant Implementing Procurement to be launched No N/A

Rehabilitation of the Northern Railway Investment grant, technical Cameroon 2018 EIB Transport 154.58 23.58 Signed Procurement to be launched Studies ongoing Design ongoing Cameroon (Belabo-Pangar- Ngaoundéré) assistance

Investment grant, technical Cameroon 2019 Cameroon Rural Electrification Project EIB Energy 206.05 16.15 Signed Procurement to be launched Studies ongoing N/A assistance

Port of Pointe Noire Extention and Upgrade Investment grant, technical Congo 2017 Yes AFD Transport 132.98 29.98 Ongoing Procurement started No No Programme assistance

Sustainable Energy for Côte d’Ivoire: 30 MWp Investment grant, technical Côte d'Ivoire 2017 Solar Power Plant in the context of the West Yes KfW Energy 39.70 10.00 Ongoing Procurement started Studies ongoing Ongoing assistance African Power Pool

Investment grant, technical Côte d'Ivoire 2017 ElectriFI country window Yes FMO Energy 33.53 10.00 Implementing N/A N/A N/A assistance

Sustainable Use of Natural Resources and Investment grant, technical Côte d'Ivoire 2019 Yes AFD Energy 37.80 2.50 Approved Procurement to be launched N/A No Energy Finance in Côte d'Ivoire (SUNREF) assistance

Investment grant, technical Côte d'Ivoire 2019 Rural Electrification AFD Energy 25.60 11.50 Approved Procurement to be launched No Design ongoing assistance

Transgambian Corridor Phase I - Construction Investment grant, technical Gambia 2018 of the Transgambian bridge and improvement Yes AfDB Transport 96.86 16.03 Implementing Procurement started No No assistance of the cross-border crossing

EU Support to The Gambia Sustainable Energy Investment grant, technical Gambia 2018 Yes EIB Energy 136.61 41.00 Ongoing Procurement started Studies ongoing Design ongoing Sector Programme assistance

WAPP 330 kV Ghana-Côte d’Ivoire Investment grant, technical Approved (under Ghana, Côte d'Ivoire 2017 Yes KfW Energy 181.30 30.70 N/A N/A N/A Interconnection Reinforcement Project assistance reconsideration)

Construction and asphalting of the road Guinea, Guinea Investment grant, technical 2017 between Boké (Guinea) and Quebo (Guinea Yes AfDB Transport 118.40 30.71 Implementing Procurement started No No Bissau assistance Bissau)

Interest rate subsidy, technical Kenya 2017 Kenya Agri Value Chain Facility EIB Agriculture 110.00 10.00 Ongoing Awarded N/A Design ongoing assistance

Investment grant, technical Kenya 2018 Rural Roads AFD Transport 112.50 30.00 Ongoing Procurement to be launched No No assistance

Reinforcement of the Electricity Transmission Kenya 2019 Yes AFD Energy 114.50 7.00 Technical assistance Approved Procurement to be launched No Design ongoing Network

Malindi-Lunga Lunga/Horohoro – Begamoyo Investment grant, technical Kenya 2019 AfDB Transport 227.98 30.68 Signed Procurement to be launched No No Road Project: Phase 1 assistance

Investment grant, technical Lesotho 2019 Lesotho Lowlands Water Development Yes EIB Environment 200.28 40.98 Approved Procurement started Studies ongoing Design ongoing assistance

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SUB-SAHARAN AFRICA (3/4)

EU-financed Consortium Total project EU Tendering of EU financed Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status project components of the project approval marker guarantee/ institutions (€ million) (€ million) started? started? risk capital started?

Mano River Union Road Development and Investment grant, technical Liberia 2018 Yes AfDB Transport 53.19 20.19 Implementing Awarded No No Transport Facilitation Programme assistance

Investment grant, technical Madagascar 2017 Madagascar Road Network Modernisation EIB Transport 236.54 116.00 Ongoing Awarded Under construction Ongoing assistance

Urban development and sanitation in priority Investment grant, technical Madagascar 2017 neighbourhoods of Antananarivo – Phase III AFD Urban development 26.37 3.00 Ongoing Awarded Under construction Ongoing assistance (Lalankely III)

Trade and investment facilitation project with Investment grant, technical Madagascar 2018 AfDB Transport 183.18 40.00 Approved Procurement to be launched No No COMESSA and Indian Ocean countries assistance

Sustainable Use of Natural Resources and Madagascar 2019 Yes AFD Energy 39.99 2.99 Technical assistance Approved Procurement to be launched N/A No Energy Finance in Madagascar (SUNREF)

Investment grant, technical Madagascar 2019 Jirama Water III Yes EIB Environment 74.00 30.00 Signed Procurement to be launched Studies ongoing Design ongoing assistance

Investment grant, technical Malawi 2017 Malawi M1 Road Rehabilitation EIB Transport 163.16 44.16 Ongoing Procurement to be launched Studies ongoing Design ongoing assistance

Malawi 2018 Kulima Access to Finance Programme EIB Agriculture 64.00 14.00 Guarantee, technical assistance Approved Procurement started N/A Design on-going

Multinational Nacala Road Corridor Investment grant, technical Malawi 2019 AfDB Transport 53.76 18.77 Signed Procurement to be launched No No Development Project Phase V assistance

Investment grant, technical Malawi 2019 Blantyre Airport Rehabilitation EIB Transport 63.99 16.99 Signed Procurement to be launched Studies ongoing Design ongoing assistance

Doubling of the 225 kV interconnector Investment grant, technical Mali 2017 Yes AFD Energy 352.16 26.66 Ongoing Awarded Under construction Ongoing Manantali - Bamako OMVS assistance

Rehabilitation of the Malian section of the Investment grant, technical Mali 2017 AfDB Transport 542.72 70.96 Implementing Procurement to be launched No No Trans Saharan road assistance

Investment grant, technical Mauritius 2019 Rodrigues Airport Development Project AFD Transport 106.63 16.10 Ongoing Procurement to be launched No No assistance

Mozambique, 2017 Mozambique-Malawi Interconnector Yes KfW Energy 88.20 20.40 Investment grant Signed Procurement to be launched No No Malawi

Multinational Nacala Road Corridor Investment grant, technical Mozambique 2019 AfDB Transport 239.52 24.96 Signed Procurement to be launched No No Development Project Phase I assistance

PROLER+ - Support to EDM to Develop Investment grant, technical Mozambique 2019 Yes AFD Energy 136.33 27.33 Approved Procurement to be launched No Design ongoing Renewable Energy Projects under PROLER assistance

Construction of a hybrid power plant in Investment grant, technical Niger 2017 Yes AFD Energy 34.07 16.42 Ongoing Awarded Under construction Ongoing Agadez assistance

Investment grant, technical Niger 2017 Solar power plant Gorou Banda (Niamey) Yes AFD Energy 30.30 5.30 Ongoing Awarded Studies ongoing Ongoing assistance

Niger Basin Niger Basin Climate Change Adaptation Investment grant, technical 2018 Yes AfDB Environment 205.39 14.98 Implementing Procurment to be launched No No countries Project (PIDACC) assistance

Information and Multinational Trans Sahara ICT Optic-fibre Investment grant, technical Niger, Chad 2018 Yes AfDB Communication 79.11 29.57 Implementing Procurement to be launched No No Backbone Project (TSB) assistance Technology

North Core - Interconnector 330 kV - Nigeria- Investment grant, technical Nigeria, Niger, Benin 2017 Yes AfDB Energy 287.34 15.38 Implementing Procurement started No No Niger-Bénin assistance

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SUB-SAHARAN AFRICA (4/4)

EU-financed Consortium Total project EU Tendering of EU financed Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status project components of the project approval marker guarantee/ institutions (€ million) (€ million) started? started? risk capital started?

Investment grant, technical Nigeria 2017 ElectriFI country window Yes FMO Energy 100.60 30.00 Implementing N/A N/A N/A assistance

Investment grant, technical Nigeria 2019 Northern Corridor - PASSEN Yes AFD Energy 247.70 25.70 Approved Procurement to be launched No Design ongoing assistance

Agriculture development and food security in Investment grant, technical Senegal 2017 the rural areas of the Tiers Sud region in Yes AFD Agriculture 47.53 20.53 Ongoing Awarded Under construction Ongoing assistance Senegal (Tiers Sud - Beydaare project)

Rehabilitation of the Trans Gambian Road Investment grant, technical Senegal 2017 AfDB Transport 97.60 25.60 Implementing Procurement started No Ongoing Sénoba-Ziguinchor (phase 2) assistance

Modernisation and reinforcement of the network of SENELEC to support the Investment grant, technical Senegal 2017 Yes AFD Energy 52.00 7.00 Ongoing Awarded Studies ongoing Ongoing development of renewable energies and the assistance access to energy

Investment grant, technical Senegal 2019 Remediation of the Hann Bay (Dakar) Yes AFD Environment 109.15 14.55 Approved Procurement started Studies ongoing Ongoing assistance

Investment grant, technical Seychelles 2017 Port Victoria Rehabilitation and Extension Yes EIB Transport 36.90 5.40 Ongoing Procurement to be launched Studies ongoing Design ongoing assistance

Extension and rehabilitation of CEET's Investment grant, technical Togo 2017 Yes AFD Energy 87.00 8.00 Ongoing Awarded Under construction Ongoing electricity network in the Greater Lomé area assistance

Investment grant, technical Uganda 2017 Construction of Muzizi Hydro Power Project Yes KfW Energy 123.30 20.50 Ongoing Procurement started No No assistance

Investment grant, technical Uganda 2018 Kampala-Jinja Toll Road AFD Transport 712.55 91.05 Ongoing Procurement started No Ongoing assistance

Isingiro water supply and sanitation Investment grant, technical Uganda 2019 Yes AFD Environment 68.45 8.45 Approved Procurement to be launched No No improvement project assistance

Investment grant, technical Zambia 2017 Great North Road EIB Transport 435.85 73.66 Ongoing Procurement to be launched Studies ongoing Design ongoing assistance

Investment grant, technical Zambia 2017 ElectriFI country window Yes FMO Energy 134.10 40.00 Implementing N/A N/A N/A assistance

Zambia 2019 Agriculture Value Chains EIB Agriculture 105.01 14.92 Guarantee, technical assistance Approved Procurement started N/A Design ongoing

Zambia-Tanzania Power Interconnector (ZTPI) Investment grant, technical Zambia, Tanzania 2019 Yes AFD Energy 456.00 30.00 Approved Procurement to be launched No Design ongoing - Tanzania section assistance

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EU NEIGHBOURHOOD (1/4)

EU-financed Consortium Total project EU Tendering of EU Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status financed project of the project approval marker guarantee/ institutions (€ million) (€ million) components started? started? risk capital started?

Regional East 2017 EFSE Local Currency Lending to MSMEs Yes KfW Private sector 53.18 43.75 Equity Signed No No Ongoing

Investment grant, technical Regional East 2017 EU DCFTA Facility, EBRD, Phase 2 EBRD Private sector 751.90 38.90 Signed Awarded N/A Ongoing assistance

Green for Growth - Extension to Regional East 2017 Yes KfW Environment 53.20 10.20 Equity, technical assistance Implementing Awarded Ongoing Neighbourhood East II

Regional East 2018 DCFTA East Local Currency Solution EIB Private sector 125.30 5.30 Investment grant Implementing N/A N/A N/A

Regional East 2018 DCFTA East Guarantee Facility II EIB Private sector 241.60 41.55 Guarantee Signed N/A N/A N/A

EFSD Joint Board Decision on Technical Technical Assistance Regional East 2018 N/A 12.10 12.10 Technical assistance N/A N/A N/A N/A Assistance EAST Facility

EU4Business - SME Competitiveness Investment grant, technical Regional East 2019 Yes EBRD Private sector 306.67 54.67 Signed Procurement to be launched N/A No Programme in Eastern Partnership Countries assistance

Energy, Finance and Technology Transfer Centre for Investment grant, technical Regional East 2019 Yes EBRD environment, private 570.40 15.40 Approved Procurement to be launched No No Climate Change (FINTECC) assistance sector

Facility for Eastern Partnership investment Regional East 2019 Yes EIB Transport 925.11 22.11 Technical assistance Approved No No No in connectivity (EPIC)

Regional East 2019 Local Currency Programme East EBRD Private sector 297.50 16.47 Guarantee, technical assistance Approved No No No

Investment grant, technical Armenia 2017 Armenia – Road Safety Improvement EIB Transport 23.17 5.41 Implementing Awarded No Ongoing assistance

Road links between Yerevan and E60 in Armenia 2017 EIB Transport 0.58 0.58 Technical assistance Implementing Awarded Under construction Ongoing Georgia

Armenia 2018 Masrik Solar Power Plant Yes EBRD Energy 53.92 3.23 Investment grant Approved Procurement to be launched No No

Investment grant, technical Armenia 2018 Meghri Border Crossing EBRD Transport 22.76 11.67 Approved Procurement to be launched No No assistance

Armenian Public Buildings Energy Efficiency Investment grant, technical Armenia 2019 Yes EIB Energy 53.47 11.47 Approved Procurement to be launched No No Programme assistance

Sisian ¬– Kajaran Road Project Armenia 2019 Yes EBRD Transport 612.22 1.82 Technical assitance Approved Procurement to be launched N/A N/A (north-south corridor)

E5P Expansion to other Eastern Partnership Belarus 2017 Yes EBRD Environment 113.20 10.20 Investment grant Signed Procurement to be launched No No countries: Belarus

Investment grant, technical Georgia 2017 Adjara Yes KfW Water, sanitation 59.86 7.36 Signed Yes No No assistance

Investment grant, technical Georgia 2017 Enguri HPP Yes EBRD Water, sanitation 35.35 7.35 Signed Procurement started No Ongoing assistance

Georgia 2017 Transport Connectivity (Georgia) EIB Transport 1137.24 6.14 Technical assistance Implementing Procurement started Under construction Tender has been launched

Georgia 2018 Energy Sector Reform Yes KfW Energy 307.85 8.80 Technical assistance Signed Yes No No

Investment grant, technical Georgia 2018 Hazardous Waste Management Yes EBRD Environment 36.64 8.34 Signed Procurement started Studies ongoing Ongoing assistance

Back to Contents >> 114 EFSD OPERATIONAL REPORT 2019 ANNEXES 115

EU NEIGHBOURHOOD (2/4)

EU-financed Consortium Total project EU Tendering of EU Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status financed project of the project approval marker guarantee/ institutions (€ million) (€ million) components started? started? risk capital started?

Energy Efficiency in Public Buildings Investment grant, technical Georgia 2019 Yes KfW, EBRD Energy 130.60 25.80 Signed No No No Programme assistance

Khashuri Water Supply and Sanitation Investment grant, technical Georgia 2019 Yes AFD Water, sanitation 56.10 7.55 Approved Procurement to be launched No No Improvement Project assistance

Promoting Local Currency Lending: GGF ‘L Georgia 2019 Yes KfW Private sector 196.30 10.10 Equity Signed Awarded N/A No Shares’ for Georgia

Investment grant, technical Moldova 2017 Moldova-Romania Interconnection Phase I EBRD, EIB Energy 270.75 40.75 Approved No No No assistance

Moldova 2018 EFSE Local Currency Initiative KfW Private sector 51.70 6.20 Equity Signed N/A N/A Ongoing

Investment grant, technical Moldova 2019 Moldova Energy Efficiency Yes EIB Energy 94.05 15.40 Approved No No No assistance

Ukraine 2017 Transport Connectivity (Ukraine) EIB Transport 2.64 2.14 Technical assistance Signed Procurement started No Tender has been launched

Ukraine 2017 Urban Road Safety Yes EIB Transport 176.82 4.42 Technical assistance Signed Yes No Ongoing

Ukrenergo: Support to Integration of the Ukraine 2018 Ukrainian Power Grid into the Synchronous KfW Energy 53.37 8.95 Technical assistance Signed Yes No No Area Continental Europe (CESA)

Ukraine 2018 Ternopil Bypass Yes EIB Transport 28.65 14.65 Investment grant Signed No No No

Municipal Transport and Investment Investment grant, technical Ukraine 2018 Yes EIB Transport 205.78 15.63 Signed No No No Programme assistance

Investment grant, technical Ukraine 2018 Municipal Infrastructure Yes NEFCO Water, sanitation 19.85 5.35 Signed Yes No Ongoing assistance

Investment grant, technical Ukraine 2018 Khmelnytskyi Solid Waste Yes EBRD Water, sanitation 18.80 5.95 Approved Procurement to be launched No No assistance

Ukraine 2018 Zhytomyr Trolleybus Yes EBRD Transport 13.69 2.03 Investment grant Approved Procurement to be launched No No

Ukraine 2018 Ivano-Frankivsk District Heating EBRD Energy 13.83 2.53 Investment grant Approved Procurement to be launched No No

Investment grant, technical Ukraine 2019 Municipal Infrastructure Development Yes KfW Water, sanitation 84.76 15.56 Approved Procurement started No No assistance

Mariupol Solid Waste Management Sub- Project Investment grant, technical Ukraine 2019 Yes EBRD Waste 20.65 4.65 Approved Procurement to be launched No No (part of the Municipal Infrastructure assistance Programme)

Kherson Trolleybus Sub-Project (part of the Investment grant, technical Ukraine 2019 Yes EBRD Transport 10.53 1.53 Approved Procurement to be launched No No Municipal Infrastructure Programme) assistance

Ukraine 2019 EFSE Local Currency Lending to MSMEs KfW Private sector 85.50 15.20 Equity, technical assistance Approved No No No

Ukraine 2019 Transport Connectivity EIB Transport 72.92 36.92 Investment grant Approved No No No

Investment grant, technical Ukraine 2019 Energy Efficiency in Small Municipalities Yes NEFCO Energy 15.55 7.05 Approved Procurement to be launched No Ongoing assistance

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EU NEIGHBOURHOOD (3/4)

EU-financed Consortium Total project EU Tendering of EU Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status financed project of the project approval marker guarantee/ institutions (€ million) (€ million) components started? started? risk capital started?

EU Trade and Competitiveness Programme in Regional South 2017 EIB Private sector 265.60 25.60 Guarantee Approved No No No Egypt and Jordan - EIB component

Extending the EBRD’s Small Business Regional South 2017 EBRD Private sector 6.40 5.20 Technical assistance Signed Procurement started N/A Ongoing Initiative to Lebanon, West Bank and Gaza

MENA SANAD - Fund for Micro, Small and Regional South 2018 KfW Private sector 182.44 22.44 Technical assistance, equity Signed No No Ongoing Medium Enterprises

EFSD Joint Board Decision on Technical Technical Assistance Regional South 2018 N/A 22.20 22.20 Technical assistance N/A N/A N/A N/A Assistance SOUTH Facility

Regional South 2019 MSME Local Currency Initiative Yes EIB Private sector 296.40 10.50 Investment grant Approved Procurement to be launched No No

Investment grant, technical Regional South 2019 SEMED Green Economy Financing Facility Yes EBRD Private sector 261.82 35.53 Approved Procurement to be launched No No assistance Green for Growth Fund (Top-Up ENR South C Regional South 2019 KfW Environment 53.50 13.50 Equity, technical assistance Approved Awarded No Shares) Investment grant, technical Egypt 2017 Fayoum Wastewater Expansion Programme Yes EBRD Water, sanitation 456.49 38.09 Signed Procurement to be launched No Ongoing assistance

Investment grant, technical Egypt 2017 Kitchener Drain Yes EIB, EBRD Environment 482.28 46.98 Signed No No No assistance

Egypt 2017 Rehabilitation of Alexandria's Raml Tram Yes AFD Transport 363.30 8.30 Technical assistance Ongoing Procurement to be launched No No

Investment grant, technical Egypt 2018 MSME Promotion Programme KfW Private sector 50.10 15.05 Signed Procurement to be launched No No assistance

Suez Oil Processing Company Energy Investment grant, technical Egypt 2018 Yes EBRD Energy 171.50 13.50 Signed Procurement started Under construction Completed Efficiency assistance

Egypt 2018 Alexandria West Wastwater Treatment Plant Yes EIB Water, sanitation 185.15 20.65 Investment grant Signed No No No

4 E for Egypt: Excellence and Energy Investment grant, technical Egypt 2019 Yes KfW Education 115.70 13.40 Approved Procurement to be launched No N/A Efficiency in Education assistance Investment grant, technical Egypt 2019 Electricity Grid Reinforcement Yes EBRD Energy 202.37 20.47 Signed Procurement to be launched No Design ongoing assistance

Investment grant, technical Egypt 2019 Green Economy Financing Facility II (GEFF II) Yes EBRD Private sector 189.86 24.86 Approved Procurement to be launched No No assistance

Investment grant, technical Jordan 2019 North-east Balqa Wastewater Project Yes AFD Water, sanitation 75.40 15.41 Approved Procurement to be launched No No assistance

Adapting to Climate Change and Saving Investment grant, technical Jordan 2019 Yes KfW Water, sanitation 86.73 7.80 Approved No No No Water assistance

Investment grant, technical Jordan 2019 Electricity Storage Project Yes EBRD Energy 39.40 6.40 Approved Procurement to be launched No No assistance

Investment grant, technical Lebanon 2018 PEURL AFD Urban, social 100.64 20.56 Signed Procurement to be launched No No assistance SEMED Financial Inclusion - extension to Lebanon 2018 EBRD Private sector 0.00 0.00 Approved Procurement to be launched No No Lebanon Lebanon 2019 Lebanese Road Safety and Rehabilitation Yes EIB Transport 478.51 20.71 Investment grant Signed Procurement to be launched No No

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EU NEIGHBOURHOOD (4/4)

EU-financed Consortium Total project EU Tendering of EU Construction Year of Rio technical assistance/ Country Project title of finance Sector cost contribution Type of EU support Status financed project of the project approval marker guarantee/ institutions (€ million) (€ million) components started? started? risk capital started?

Morocco 2017 Euromed University of Fes (UEMF) Yes EIB Education 147.57 13.57 Investment grant Signed Yes Under construction No

Morocco 2018 Noor Midelt I and II Solar Energy Yes KfW Energy 2137.60 61.10 Investment grant Signed No No No

Investment grant, technical Morocco 2018 Green Economy Financing Facility (GEFF) Yes EBRD Private sector 197.11 21.11 Approved Procurement to be launched No No assistance

Morocco 2019 Women in Business Yes EBRD Private sector 93.97 9.97 Guarantee, technical assistance Approved Procurement to be launched N/A No

Investment grant, technical Morocco 2019 Saiss and Garet Water Conservation Yes EBRD Water, sanitation 354.13 29.13 Approved Procurement to be launched No No assistance

Investment grant, technical Morocco 2019 Youth Employment Programme Yes AFD Social 164.97 15.30 Approved No No No assistance

Energy, SUNREF Palestine: Sustainable Use of Palestine* 2017 Yes AFD environment, private 42.50 8.35 Investment grant Ongoing Awarded N/A Ongoing Natural Resources and Energy Finance sector

European Palestinian Credit Guarantee Palestine* 2018 KfW Private sector 33.20 10.00 Guarantee Approved No No No Foundation (EPCGF)

Revitalization Program for the Modernization Tunisia 2017 Yes AFD Agriculture 300.80 10.30 Technical assistance Implementing Awarded No Ongoing of Agricultural Operations (PRIMEA)

Investment grant, technical Tunisia 2017 Proville 2 AFD Urban, social 235.69 30.69 Implementing Procurement started Studies ongoing Ongoing assistance

Investment grant, technical Tunisia 2019 Modernisation of Schools (phase II) Yes EIB Education 161.65 25.15 Approved Procurement to be launched No No assistance

Equity Mechanism for the Promotion of Tunisia 2019 Yes KfW Private sector 100.90 15.45 Equity Approved No No No Start-Ups (ANAVA Fund of Funds)

Investment grant, technical Tunisia 2019 Improvement of Tunisia’s Water System Yes KfW Water, sanitation 405.91 40.86 Signed No No No assistance

SONEDE Water Distribution Network Investment grant, technical Tunisia 2019 Yes KfW Water, sanitation 82.80 12.40 Signed No No No Performance Improvement assistance

* This designation shall not be construed as recognition of a State of Palestine. It is without prejudice to the individual positions of the EU Member States on this issue.

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Communication

B. In 2019 we increased our digital We also produced: communication by: publications

developing a new website, launched in online stories of individual beneficiaries 2020 promotional materials for events. producing videos to: Communication – explain the Plan – tell the stories of people who have benefited from the kinds of project the VIDEOS and outreach Plan is financing intensifying our social media presence.

WEBSITE

STORIES SOCIAL MEDIA PUBLICATIONS

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Outreach

In 2019 we reached out to stakeholders in Sub-Saharan Africa and the EU Neighbour- hood, by organising missions to partner countries and taking part in external events.

Missions to partner countries

Where? What? In 2019 we held outreach missions in ten During each mission we held several events partner countries. to explain how the EU External Investment Plan works and the opportunities it offers.

Events included: Angola Cameroon Ethiopia a business-to-business session to connect international financial institutions with potential beneficiaries of the Plan Kenya Senegal Sierra Leone a working session with government agencies training sessions for staff from EU Somalia Zambia Armenia delegations and EU Member States posted locally.

Tunisia

External events

We took part in and presented the Plan at 15 high-level business events organised externally, such as the Africa Investment Forum in Johannesburg.

Business events in partner countries in 2019

We organised We took part in We reached over 10 15 4 400 ourselves organised by others people

High-level panel

We also organised a high-level panel at the Participants discussed ‘Addressing 2019 European Development Days event in inequalities with EU-backed and private Brussels. investment.’

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