The EU is on track to achieve its target by 2020 of:
- investing €4.5 billion through the External Investment Plan
- thereby leveraging €44 billion in investment.
It is doing so through the new European Fund for Sustainable Development (EFSD) - the main financial arm of the EU External Investment Plan – which comprises a guarantee and blending.
Progress with the guarantee
- The total budget for the Guarantee is €1.54 billion.
- The EU has now allocated the entire amount to 28 guarantees
- These are expected to leverage €17.5 billion in investment.
- The EU has also signed the first guarantee agreement with a partner financial institution; more will follow in early 2019.
Progress with Blending
- The total budget for EIP blending programmes in Africa and the EU Neighbourhood is €3 billion.
- Of this the EU has so far allocated €2.2 billion.
- This is expected to leverage €19.6 billion in investment.
The EFSD 2017 Operational Report gives full details of the blending programmes.
How the External Investment Plan funds projects and operations
The EFSD is the financial arm of the EU External Investment Plan.
- blending - the EU's existing so-called 'blending' programmes (€3 billion budget), which mix loans and grants
- guarantee - a dedicated financial guarantee (€1.54 billion budget)
The guarantee can:
- attract financing for some of the initial capital ('equity' or 'risk capital') a project needs to get off the ground
- serve as a pledge (guarantee) to pay back part or all of a loan if a borrower incurs losses and default on it