Denmark has made a €10m funding contribution to the EU’s External Investment Plan, which promotes sustainable development in Africa.
The External Investment Plan, a key facet of the Africa-Europe Alliance, aims to mobilise public and private investment to stimulate African growth. Denmark’s voluntary offering represents the largest single contribution to the plan by an EU Member State; the majority of the funding provided will be directed toward the External Investment Plan’s financial mechanism, the European Fund for Sustainable Development (EFSD). Denmark is the fourth Member State to provide a contribution to the fund, following Czechia, Estonia and Germany.
Neven Mimica, European Commissioner for International Co-operation and Development, said: “With this contribution, Denmark has given a ringing endorsement of the Commission’s ability to mobilise investment and maximise impact through the External Investment Plan. I am confident that our collective effort will bring the EU’s partnership with Africa to the next level we need for a successful Africa-Europe Alliance.”
The EU External Investment Plan will deploy a total of €4.5bn in public funding in order to secure outside investment worth €44bn for sustainable development in Africa and the Southern Neighbourhood by 2020. In addition to supporting investors by sharing the financial risk of investment and guaranteeing finance, the EU provides additional support in terms of technical assistance for businesses and governments; as well as co-operating with governments in partner countries to improve the political, economic and commercial conditions under which investments are decided.
Danish Minister for Development Cooperation Rasmus Prehn said: “Denmark sees the [European Fund for Sustainable Development] as a strong instrument in addressing climate change and the root causes of migration. Our contribution is earmarked for Africa to help deal with its challenges in these two areas. In addition, we believe Denmark can offer strong competences for implementing projects in areas such as renewable energy, agriculture, and green urban development.”