BRUSSELS, 1 April 2014 – At the 5th EU-Africa Summit, African and EU governments and business leaders have gathered to map out an action plan aimed at strengthening cooperation in key areas including investments, climate change and security. Capacity building, identified by the summit as an important objective, is at the core of an initiative driven by the European Investment Bank (EIB) that was formalised on the side lines of the summit during the signing of an agreement with the African Trade Insurance Agency (ATI).
Jean-Christophe Laloux, Deputy Director General at the European Investment Bank, endorsed the first phase of the partnership that will see ATI receive a €2 million grant. ATI, a recognized African institution with expertise in risk mitigation on investments, will use the grant to obtain specialist skills in originating and underwriting energy sector projects.
“Investment in energy is essential for economic growth and quality of life in Africa. We are pleased to support this new engagement by the African Trade Insurance Agency to improve key skills and understanding of energy investment will strengthen implementation of key energy projects. This new cooperation complements the European Investment Bank’s wider commitment to support energy investment, as demonstrated in last week’s support for East Africa Africa’s largest ever investment in the Lake Turkana Wind Power Project.” said Pim van Ballekom, European Investment Bank Vice President.
Upon completion of this initial phase of the agreement, ATI is expected to become one of the key partners and members in Africa for the Africa Energy Guarantee Fund (AEGF), which aims to enhance access to proper risk mitigation and credit enhancement tools for energy sector projects in Africa. EIB devised AEGF in response to the UN Sustainable Energy for All (SE4All) initiative while several other leading African financial institutions are lined up to participate along with ATI.
“Demand for clean, affordable and sustainable energy solutions is a priority for most of the continent. We are pleased to be part of this EIB-led initiative because it has the potential to have real impact both at the level of investments and on improving the quality of life for millions of people in Africa,” noted George Otieno, ATI’s Chief Executive Officer, who signed on behalf of ATI.
The demand in Africa for cleaner and more reliable energy sources is great. Currently close to 600 million people out of a total population of 1 billion do not have access to electricity in Africa. This leaves millions reliant on dangerous options such as kerosene lanterns and charcoal stoves, which causes nearly 1.4 million premature deaths from respiratory illnesses, according to the World Health Organisation. The EIB initiative – AEGF- once it is fully realized will facilitate projects that can offer African countries with sustainable cleaner energy alternatives to support their energy needs.
