S&Ds back fund to mobilise 44 billion for investments in Africa and the EU’s neighbourhood

S&Ds back fund to mobilise 44 billion for investments in Africa and the EU’s neighbourhood, africa, #4Africa

The Socialists and Democrats voted today in the plenary in favour of the Commission’ proposal for a European Fund for Sustainable Development (EFSD) aimed at mobilising up to EUR 44 billion for investments in Africa and the EU’s neighbourhood.

The EFSD will bring together a new EFSD Guarantee Fund and existing tools into a single fund and is expected to boost investments, foster sustainable and inclusive socioeconomic development, and address the root causes of the migration crisis.

S&D spokesperson for the budget committee and co-author of the report, Eider Gardiazabal Rubial MEP, said:

“The merging of the funds is important to improve the effectiveness and efficiency of the EFSD. It will help avoid duplication while reducing the administrative burden. At the same time, the fund is vital for achieving our objectives together with our African partners, namely creating decent jobs, boosting growth and ensuring stability in Africa and the EU’s neighbourhood. To support this, the EFSD will include a Guarantee Fund of 1.5. billion Euro aiming at mobilising up to 44 billion Euro for investments.”

S&D MEP and co-author of the report for the development committee, Doru-Claudian Frunzulică, said:

“Africa is of strategic importance for Europe and a key priority for the Socialists and Democrats. We Europeans have a genuine interest in deepening and reinforcing our relations with our African partners in order to build a peaceful and stable Africa and Europe together. To achieve this all existing funding and assistance tools need to shift their focus to help Africa address major challenges in terms of socioeconomic development, job creation, climate change and migration.

“EFSD is also very important for EU Eastern Partnership - in order to promote investments, development and EU values in these countries, to bring them closer to the EU.

“The fund is crucial to support investments and the involvement of the private sector through innovative financing so we can foster sustainable and inclusive economic and social development. This can help us address root causes of migration crisis and promote the resilience of partner countries in Africa and the neighbourhood, particularly in the least developed countries.”