Connect with us

Global Gateway

Global Gateway Forum: EU and EDFI sign three guarantee agreements to mobilize private investments in partner countries

SHARE:

Published

1 month ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

At the Global Gateway Forum (10 October), the European Commission and European Development Finance Institutions announced three new guarantee agreements to mobilize private finance for development. The guarantees aim to strengthen value chains across various sectors, expand access to renewable energy, and unlock private equity financing, providing financial coverage for a total amount of €742 million. They are part of the European Fund for Sustainable Development Plus (EFSD+), one of the financing tools of Global Gateway, promoting sustainable investments in partner countries. 

International Partnerships Commissioner Jozef Síkela said: “These new guarantees signed today by the EU and the EDFI, as Team Europe, will help mobilize investment in renewable energy projects and new value chains in our partner countries. This is the core principle of Global Gateway: de-risking investment to create jobs, boost local businesses, and strengthen resilience.”

Mediterranean Commissioner Dubravka Šuica stated: “Very pleased to sign a new guarantee agreements with EDFI today. The contribution of all European Development Finance Institutions is the best expression of working in a Team Europe spirit and will contribute to deliver Global Gateway investment in the Mediterranean. We look forward to see these agreements translated into concrete investments, particularly in supporting local value chains and partnerships with European industries.”

Enlargement Commissioner Marta Kos commented: “Today’s signature is a call to invest: in railways, in energy corridors, in digital networks. Our neighbourhood is changing. Our partners seek to reduce dependencies. For the first time in generations, new trade routes from Europe to Central Asia are opening. This can be an economic win-win for all.” 

The first guarantee is for the Transforming Global Value Chains programme. The EU will guarantee up to €194m for investments in developing local value chains and fostering local value creation across agribusiness, health, manufacturing, and processing in sectors such as digital, logistics or textiles. 

With the second guarantee for the Renewable Energy Transition programme, the EU will support investments in renewable energy projects. The €332m guarantee will back initiatives in on- and off-grid power generation, transmission and distribution, as well as energy storage. 

The third guarantee, the Liquidity Platform for Impact, supported by the EU with €216m, will facilitate flows of new investments in partner countries by creating a secondary financial market. Attracting early-stage financing remains one of the biggest challenges for European investors in our partner countries, and this mechanism aims to help overcome that barrier.

Advertisement

All these new guarantees build on the existing programmes with EDFI MC, increasing the total guarantee capacity to €1.6 billion - providing EDFI and its members with a versatile investment toolkit.

The signing ceremony brought together high-level representatives: European Commissioners Jozef Síkela, Dubravka Šuica and Marta Kos, the General Manager of European Development Finance Institutions David Kuijper and representatives of three Development Finance Institutions  that are the main users of the guarantee – Michael Jongeneel of FMO, the Dutch entrepreneurial development bank; Roland Siller, CEO of DEG, the German private sector investment corporation; and Jean-Baptiste Sabatie, Deputy CEO of Proparco, the private sector development bank of the French AFD Group.

Background

Global Gateway Forum

The Global Gateway Forum brings together leaders from the European Union and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in infrastructure - hard and soft - to deliver on the SDGs and sustainable growth and resilience worldwide.

Global Gateway

Global Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.

The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.

For more information

Share this article:

Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending