EU and partners sign EFSD+ guarantee agreements to boost sustainable development in partner countries

Today, the European Union launched three EU-supported investment programmes valued at €700+ million, which will mobilise €6.3 billion in public and private investments. 

The programmes, which all reflect a strong commitment towards climate resilience and inclusive economic prosperity, are all supported by the European Fund for Sustainable Development Plus (EFSD+), one of the financing tools of Global Gateway, promoting sustainable investments in partner countries. 

As part of these new programmes, the EU, EDFI Management Company (EDFI MC) and European Development Finance Institutions (EDFIs) will scale up a key initiative aimed at generating employment and enhancing financial inclusion.  The EDFI MSME Platform Plus Programme, supported by €255 million of EFSD+ guarantees, will provide critical support for job creation, and economic growth for micro, small, and medium-sized enterprises (MSMEs) particularly in the manufacturing, supply chain, and agriculture sectors in the EU Neighbourhood East regions and Sub-Saharan Africa, by supporting EDFIs to enhance their lending support to local banks. By addressing financial constraints faced by MSMEs, the programme intends to mobilise more than €2 billion in financing and enable smaller local banks to access EDFIs’ financing for the first time. 

European Commissioner for Neighbourhood and Enlargement Olivér Várhelyi said today’s signature was another excellent example of the EU’s firm commitment to supporting economic inclusion in the Western Balkans and the Eastern Neighbourhood as part of the EU’s tailored-made Economic and Investment Plans.

“Through the EFSD+ Guarantee Programme, we will mobilise €4 billion for the forestry sector to mitigate the heavy effect of climate change and another €2 billion for the job creation of micro-, small- and midsize enterprises, particularly in the manufacturing, supply chain, and agriculture sectors,” Várhelyi said. “We are dedicated to promoting growth and jobs in our partner countries with all our available tools and instruments, ensuring a long-term commitment to economic inclusion.”

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