EU and European DFIs scale up a major MSME financial inclusion programme supporting Investing in Young Businesses in Africa (IYBA) and their digital, sustainable and inclusive economic and social development and growth in Sub-Saharan Africa and the EU Neighbourhood East
aiming to mobilise over €2 billion thanks to the EU’s Global Gateway’s financial arm, the European Fund for Sustainable Development Plus (EFSD+).
Brussels, 2 October 2024 – The European Union (EU) and EDFI Management Company (EDFI MC) together with European Development Finance Institutions (EDFIs) have joined forces to scale up a key initiative aimed at generating employment, and enhancing financial inclusion, especially amongst young businesses in Africa and women-led businesses. 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 enterprises particularly in the manufacturing, supply chain, and agriculture sectors in Sub-Saharan Africa and the EU Neighbourhood East regions, by supporting EDFIs to enhance their lending support to local banks. By addressing financial constraints faced by MSMEs, the programme aims to mobilize more than €2 billion in financing, and enable smaller local banks to access EDFIs’ financing for the first time.
European Commissioner for International Partnerships Jutta Urpilainen stated: “
We proudly launch the EDFI MSME Platform Plus Programme, a key initiative to empower micro, small, and medium enterprises in Sub-Saharan Africa and the EU. This program not only drives economic growth but also supports underserved business owners, especially women, in rural and vulnerable areas. Together, and through Global Gateway, we are paving the way for a more inclusive future and strengthening local value chains for sustainable development.”
European Commissioner for Neighbourhood and Enlargement Olivér Várhelyi said: “As part of our tailored-made Economic and Investment Plans, today’s signature is another excellent example of our firm commitment to supporting economic inclusion in the Western Balkans and the Eastern Neighbourhood. Through the EFSD+ Guarantee Programme, we will mobilize EUR 4 billion for the forestry sector to mitigate the heavy effect of climate change and another EUR 2 billion for the job creation of micro-, small- and midsize enterprises, particularly in the manufacturing, supply chain, and agriculture sectors. 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.”
Francoise Lombard, CEO of Proparco said “As European DFIs, we celebrate the collective effort that has led to the launch of the EDFI MSME Platform Plus, a European-backed initiative enabling EDFIs to increase financing for micro, small, and medium enterprises. By providing essential financial and non-financial support, the initiative aims to boost job creation and strengthen the economic resilience of local businesses in Sub-Saharan Africa and the EU Neighborhood East. This reflects our shared commitment, as Team Europe, to sustainable development and the empowerment of communities.”
Rodrigo Madrazo Garcia de Lomana, CEO of EDFI MC, expressed his enthusiasm for the launch of the initiative, concluding, “EDFI MSME Platform Plus represents a significant scale up of a very successful initial programme that is channelling sustainable finance into banking and non-banking organisations who on-lend to entrepreneurs who are the businesses of the future. By supporting European DFIs, we are empowering local businesses and making a tangible impact in the regions we serve. These initiatives exemplify the EU’s and EDFI MC’s commitment and the commitments and European DFIs to delivering innovative development finance solutions that foster economic opportunities and environmental sustainability in areas where traditional financing options are limited.”
Commitment to Sustainable Development
EDFI MSME Platform PLUS will focus on contributing to the following UN Sustainable Development Goals:
- SDG 1: End poverty in all its forms everywhere
- SDG 8: Decent work and economic growth
- SDG 12: Responsible production and consumption.
Notes to editor:
About EDFI Management Company: EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. Learn more at www.edfimc.eu
About EDFI: The Association of European Development Finance Institutions, or EDFI, was established in 1992 to support and promote the work of bilateral Development Finance Institutions (DFIs). With a combined portfolio of €53 billion, including over €15 billion of climate finance, EDFI’s 15 member institutions share a vision of a world where the private sector offers people in low- and middle-income countries opportunities for decent work and improved lives, and where private investment flows are aligned with the Sustainable Development Goals and the Paris Climate Agreement. EDFI’s mission is to promote the joint interests of its members, inform policy, and drive innovation in industry standards. Discover more at www.edfi.eu
EDFI membership: BII (UK), BIO (Belgium), Cofides (Spain), DEG (Germany), Finnfund (Finland), FMO (The Netherlands), IFU (Denmark), Norfund (Norway), OeEB (Austria), Proparco (France), SIFEM (Switzerland), Simest and CDP Development Finance (Italy), SOFID (Portugal), and Swedfund.
