EIB and Afreximbank fund Green Recovery Projects in African Nations

On August 5, 2020, the European Investment Bank (EIB) announced it was directing EUR 300 million toward the COVID-19 response and recovery in African nations. The funding is part of the EIB Team Europe Initiative, designed to help the most vulnerable and exposed countries respond to the immediate health crisis, mitigate social and economic impacts, and build resilience for the future. It will be delivered together with the African Export-Import Bank (Afreximbank). EUR 200 million of support is being diverted from funds previously allocated to trade-related investments, directing them to sectors hardest hit by the pandemic. An additional EUR 100 million of the funding is newly provided by EIB and Afreximbank.

The funds will help businesses in sub-Saharan Africa sustain jobs and maintain imports. A portion of the package will specifically support businesses owned or managed by women. Another part of the funds will aim at enabling international trade in medical supplies and equipment essential for slowing the spread of COVID-19. In addition, at least 25% of the capital is reserved for green projects, for example, to promote renewable energy, energy efficiency, and climate change adaptation. These funds can play an important role in supporting a green recovery in African nations.