Policy Updates

On June 20, 2024, the EIB approved EUR12.8 billion (US$13.7 billion) in financing to improve sustainable transport, increase the use of renewable energy, build new student housing, improve earthquake and flood protection, and help business expansion.

EUR2.9 billion (US$3.1 billion) will be allocated for urban development, education, health, and water projects. EUR2.1 billion (US$2.2 billion) is slated to support corporate innovation, with a focus on female entrepreneurs in Africa and the Caribbean, as well as business financing in Ukraine.

EIB President Nadia Calviño highlighted that support will go to global and regional flagship projects and that the investments will improve quality of life and reflect the EIB's commitment to strengthen European resilience, productivity growth, and innovation.

On May 29, 2024, the global arm of the EIB committed EUR25 million (US$27 million) to Amethis Fund III, a pan-African fund that supports the growth of medium-sized companies in Africa.

The fund focuses on companies providing goods and services to low and middle-income populations in sectors such as healthcare, business services such as logistics and IT, manufacturing and distribution, agribusiness, consumer goods, non-banking financial services, infrastructure, and energy.

The EIB Global investment aligns with the EU's Global Gateway strategy to promote economic development in sub-Saharan Africa. The fund will implement an impact strategy that addresses issues essential to the sustainable development of the continent, such as gender equality, sustainable employment with an emphasis on health coverage and climate considerations.

On May 23-25, 2024, the G7 Ministers of Finance met at a summit in Stresa, Italy, where the ministers voiced support for contributions to the IDA, WHO, Gavi, and the Global Fund in the resulting communiqué.

The G7 ministers supported efforts towards a successful 21^st replenishment of the IDA by the end of 2024 through an ambitious policy and financing package. Notably, they did not give a concrete signal that the critical US$100 billion threshold requested by the World Bank will be crossed, nor any indication of the US$120 billion expected by African leaders.

The ministers reaffirmed their dedication to strengthening the governance and finance of the global health architecture and voiced support for refinancing processes of several GHIs, such as Gavi, the Vaccine Alliance, the WHO, and the Global Fund, and expressed support for the Pandemic Fund. The communiqué called on the donor community to coordinate efforts and increase investments in global health in line with their capacities to ensure sustainable funding and maximize the impact of available resources.

Following the summit, the C7 pointed out the G7's lack of ambition and financial commitment to international development, including climate adaptation. International civil society organizations criticized the lack of any reference to allocating SDRs to global solidarity.

On May 14-15, 2024, the C7 summit was held at the UN FAO headquarters in Rome, Italy, organized by the Italian Civil Society Coalition that led, coordinated, and moderated the C7 2024 process.

Approximately 400 global representatives took part in the event, as well as international decision-makers, including FAO Director-General Qu Dongyu, Italian G7 sherpa Ambassador Elisabetta Belloni, Cardinal, President of the Italian Episcopal Conference, Pope’s envoy for the Russian-Ukrainian conflict Matteo Maria Zuppi, and Director of the UN SDG Action Campaign Marina Ponti.

The official C7 communiqué that listed the international civil society recommendation to the G7’s Leaders around seven key issues was released at the event, which included:

• Economic justice and transformation;
• Climate, energy transformation, and environmental justice;
• Global health;
• Principled humanitarian assistance;
• Peace, common security, and nuclear disarmament;
• Human mobility and migration; and
• Food justice and food systems transformation.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 11, 2024, the European Commission and the Belgian Council Presidency hosted the Global Gateway High-Level Event on Education.

Grounded in EU pledges from the 2022 TES, the program prioritized green and digital learning, teaching quality, and finance for education among others. Notably, FLN, one of the key foci of the 2022 TES, did not feature in the agenda.

In addition to high-level meetings and discussions, the event included EUR245 million (US$264 million) several pledges from the EU, including:

• EUR110 million (US$119 million) for implementation of Zambia's National Development Plan and Free Education Initiative, which aim to improve quality of early, primary, and secondary education and increase the attendance and completion rates of girls in school;
• EUR75 million (US$81 million) co-financed by the EU and Team Europe for employment-related skills and vocational training with a focus on women and girls' education in SSA. Specific partner countries were not named;
• EUR15 million (US$16 million) and EUR27 million (US$29 million) were allocated to youth mobility projects with a focus on EU-Africa mobility and intra-African mobility and green skills, respectively; and
• EUR18 million (US$20 million) for building research capacity related to medicines and vaccines in Nigeria.

On March 6, 2024, the EU announced EUR228 million (US$236 million) in support for projects in Uganda during a high-level business meeting.

With a primary focus on business and economic development, the initiatives also touched on topics including housing, human rights, digital infrastructure, gender equality, and agriculture:

• EUR40 million (US$43 million) was provided for the "Investing in Young Women-Led Entrepreneurs Business in Africa," which was reported as an effort to increase women's economic empowerment in partners across SSA, though specific partner countries were not listed in the press release;
• EUR50 million (US$54 million) was loaned to Uganda with the aim of increasing youth and women's employment while increasing access to jobs in sustainability;
• The EIB announced an EUR25 million (US$27 million) loan for the development of SMEs and aimed for 50% of support to benefit women-led businesses;
• EUR5 million (US$5 million) was also allocated to build awareness and advocacy surrounding human rights abuses in business;
• The EIB loaned EUR25 million (US$27 million) for over 500 telecommunications towers to be built throughout Uganda, with the aim of increasing access to digital technologies;
• The EIB loaned EUR50 million (US$54 million) to the Centenary Rural Development Bank to support women entrepreneurs in small businesses; and
• EUR 12 million (US$13 million) was allocated to both the START Facility and the Agricultural Business Initiative in Uganda to support climate resilience and economic development among agrarian populations.

On March 6, 2024, EIB Representative Nina Fenton attended the inauguration of the Agra Metro, which received an EUR450 millino (US$488 million) loan from the EIB.

The project was funded under the Global Gateway initiative, specifically in the EIB's role as the EU Climate Bank. The initiative was intended to decrease carbon emissions related to travel in the city of Agra, which is a highly trafficked tourist destination. Furthermore, the project aims to reduce high levels of air pollution, increase accessibility of both travel and the monuments, and increase protections for women and girls.

The loan financing the 30 km project, which includes 26 stations, follows a pattern of EIB investments across India focusing on transportation and greenhouse gas emission reductions.

On February 9, 2024, the EIB and Mauritania finalized an EUR20 million (US$22 million) loan to support SMEs with a focus on empowering women and young people in the labor market.

Accompanied by a visit of Commission President Ursula von der Leyen to Mauritania, the agreement was facilitated by the EU's partnership with the OACPS. The loan will be managed by Mauritania's BCI., with the following priorities:

• 50% or more allocated to youth training and employment;
• 40% to women's economic empowerment; and
• Increased investments in renewable energy and sustainable agriculture, among others.

The agreement also included the possibility of unlocking an additional EUR5 million (US$5 million).

On November 30, 2023, European Commissioner for International Partnerships Jutta Urpilainen announced EUR143 million (US$156 million) in support for humanitarian assistance in Afghanistan.

Prioritizing displaced and vulnerable populations, the package included assistance for education, WASH, health, and gender equality, including WEE. Under the heading of basic services, the assistance also included psychological care, educational incentives such as free school meals, and efforts to shore up local economies.