The report on the implementation of the European Fund for Sustainable Development (EFSD) assesses the implementation of the EFSD, the instrument using the innovative financial tools under the EU External Investment Plan. It shows that the EFSD is strongly relevant to the investment needs of Sub-Saharan Africa and the EU Neighbourhood regions, as well as to the EU priorities and commitments.
The implementation report builds on an independent assessment that was carried out between July 2019 and January 2020 and shows following results:
- Relevance: The EFSD approach has been characterised as highly relevant in the ‘new Sustainable Development Goals (SDG)-led global development finance model’, given the EFSD’s catalytic role, risk sharing capabilities and ability to enhance partnerships. It is thus considered to be one of the leading examples of this new model in action so far.
- Effectiveness and additionality: Early stage dialogue in-country ensures that the EFSD pipeline is aligned with SDG priorities. The EFSD enables the EU to do two things that are difficult to do with other EU instruments:
- engage much more broadly in support of private sector development and sub-sovereign investments, and
- support broad innovation.
- Efficiency: The EFSD governance structure facilitates transparency and coordination with all involved actors.
- Coherence: The EFSD encourages greater coordination and alignment between the EU and financial institutions.
Finally the external assessment highlights that long-term sustainability of the EFSD as an approach is currently ensured by high levels of demand. This is reinforced by the potential of the EFSD (guarantees in particular) to test and develop new financial products.
Thus, overall the EIP and the EFSD are well on track and, in spite of some challenges, the initial target should be surpassed with the EFSD leveraging EUR 47 billion of investments by the end of the investment period, using EUR 4.6 billion for blending and EFSD guarantees.
Read the report to the European Parliament and Council here.
Read the full independent assessment here.
4 June 2020