The European Investment Bank strengthens its engagement in Africa
During his first official visit to Africa since the start of the COVID-19 pandemic, European Investment Bank President Werner Hoyer and Vice President Thomas Östros today officially inaugurated the EIB’s new hub in Nairobi with Kenyan Finance Minister Cabinet Secretary Ukur Kanacho Yatani.
Ahead of the launch of the EIB’s enhanced presence in Africa, President Hoyer joined the Managing Directors of the Cooperative Bank, the Trade and Development Bank and International Housing Solutions in announcing new transformational financing of 400 million EUR to help the Kenyan private sector recover from COVID, strengthen investment in fragile regions of East Africa and build affordable and energy efficient housing.
“At the European Investment Bank, we are committed to strengthening the impact of our sustainable investments around the world in close cooperation with our global partners and through an increased local presence of our technical, environmental and financial experts. The new EIB hub in Nairobi, inaugurated today, marks an important milestone in the EU Bank’s engagement in Kenya and builds on our 56 years of operations in Africa. In the coming weeks, the EIB will launch a dedicated development arm which will further step up the EIB’s contribution to tackling global and local investment challenges. said Werner Hoyer, President of the European Investment Bank.
“The EIB’s new Nairobi hub will open a new chapter for the bank’s cooperation with Kenyan, African, Team Europe and global partners. It will allow the EIB to better respond to private and public investment priorities and to build on best practices for engagement with project partners. It is a pleasure to be in Nairobi for the EIB’s first high-level visit to Africa since the pandemic and to join political, business, banking and civil society actors for today’s official launch ” , said Thomas Östros, vice-president of the European Investment Bank.
EU Ambassador to Kenya HE Henriette Geiger said: “We are honored that the EIB has chosen Nairobi as the location for its regional hub. This testifies to the growing importance of Nairobi as a gateway to the East African region and to Kenya as a strategic partner of the European Union, through which we engage in different spheres. , especially trade and investment.
The EIB hub in Nairobi was officially launched in Kenya in the presence of government, business and banking leaders, civil society and African and European diplomats.
Strengthening the impact of the EIB’s engagement in Africa
The European Investment Bank is the largest international public bank in the world and the new Nairobi center will further enhance the impact of EIB technical and financial support for high impact investments in East Africa. This will build on the EIB’s engagement in Kenya since the start of operations in 1976 and the opening of the EIB representation in East Africa in 2005.
Over the coming months, the new Nairobi Hub will expand and increase its expertise in climate action, innovation and digital investment, in close cooperation with partners based in East Africa.
In September, shareholders of the European Investment Bank, the 27 EU member states approved plans to strengthen its global commitment to development and the EIB will launch a dedicated development arm in early 2022.
EUR 400m in new EIB support for businesses affected by COVID, fragile regions and housing
Ahead of the official opening, the EIB confirmed further support for transformational investments across East Africa.
This includes the support of 50 million euros of new investments by Kenyan private sector companies in the sectors most affected by the COVID-19 pandemic as part of a new business finance program in partnership with Co- Operative Bank.
The EIB also provided its first-ever targeted support to unlock investments in fragile regions and overcome challenges related to climate change, poverty and instability. The new € 163 million initiative with the COMESA Trade and Development Bank will finance projects in East and Southern Africa.
The construction of thousands of more affordable and energy-efficient homes in Kenya will be accelerated under a € 180 million program with African partner International Housing Solutions.
Building on the EIB’s engagement with African financial partners
Last year, the EIB provided more than EUR 5 billion in new financing to support more than EUR 12 billion of transformational private and public investment across Africa.
This includes launching new targeted financial initiatives in collaboration with African banks and financial institutions to help businesses recover from the challenges of COVID-19, accelerate climate finance, improve access to finance for women-led businesses. and improve financing for rural smallholders.
The European Investment Bank (EIB) is the European Union’s long-term lending institution owned by its member states. It makes long-term funding available for sound investments in order to contribute to the political objectives of the EU.