MICROCAPITAL BRIEF: European Investment Bank Launches EIB Global to Expand in Africa, Asia, Latin America

The EU’s European Investment Bank (EIB) recently launched a new unit, EIB Global, to expand its operations in Africa, Asia and Latin America with support from Team Europe, an initiative launched by the EU to help countries worldwide adjust to the COVID-19 pandemic. To support its expanded geographic scope, EIB is establishing multiple offices outside Europe, the first of which recently opened in Kenya.

The goals of EIB Global include “supporting the European Union’s neighborhood and enlargement policies; climate action and economic resilience, including innovative investments considered too risky for commercial banks; promoting EU goals for peace, security and sustainable living; supporting women… and assistance for the communities where life is hardest.” In addition to funding institutions that lend to farmers and owners of small businesses, EIB Global will participate in the European Commission’s Global Gateway program, which has a budget of EUR 300 billion (USD 344 billion) to deploy for climate mitigation and adaptation as well as the digital, transport, health, energy and education sectors.

EIB, founded in 1958, invests in “innovation, SMEs [small and medium-sized enterprises], infrastructure and climate.” In addition to providing funding, the institution assists its clients “in project implementation and the modernization of public policies [via] technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the calendar year totaling EUR 58 billion (USD 71 billion).

The European Commission, founded in 1951, is the executive body of the EU. It is responsible for proposing legislation, implementing decisions, upholding the EU’s treaties and the day-to-day operation of the EU. The commission is headquartered in Belgium and has representatives in all EU countries.

By Sheen Gupta, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/publications/eib-global-partnerships-worldwide.htm

EIB homepage
https://www.eib.org/

European Commission homepage
https://ec.europa.eu/

Global Gateway Programme webpage
https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6433

Previous MicroCapital article on EIB
https://www.microcapital.org/microcapital-brief-eib-lends-ecobank-group-113m-for-smes-in-africa-with-emphases-on-women-adjusting-to-covid-19/

Previous MicroCapital article on the European Commission
https://www.microcapital.org/microcapital-brief-malawi-among-hosts-of-european-commission-oacps-uncdf-digital-finance-program-for-women-youth/

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.