A Sting Exclusive: EU Commissioner Mimica looks at how the private sector can better deliver for international development

Neven Mimica EU Commissioner

Visit of Neven Mimica, Member of the EC in charge of International Cooperation and Development, to Antalya, Turkey where he attended the first and second plenary meetings of the Comprehensive High-level Mid-term Review of the Implementation of the Istanbul Programme of Action (IPoA) for the Least Developed Countries. © European Union , 2016 / Source: EC – Audiovisual Service / Photo: Yasin Akgül.

This article was exclusively written for the Sting by Mr Neven Mimica, EU Commissioner for International Cooperation & Development.

There’s never been a more relevant time to look at what role the private sector has to play in development. What are the challenges, and what can it help to deliver?

The current world situation leaves us facing unprecedented challenges in development cooperation, for which urgent solutions are needed. The ambitious targets for the forthcoming years arising from the Sustainable Development Goals, the climate finance deal and the growing need to address the root causes of forced displacement, require a high level of financial resources.

However, at the same time, resources allocated to cooperation are limited and we need to find innovative ways for the scale and nature of traditional development co-operation models to match the universal sustainable development needs. In addition, the current strained economic and budgetary environment makes it imperative to ensure that resources are spent effectively, deliver the best possible results and — especially — are used to leverage further financing for development. EU blending (ie the principle of combining grants and loans, or equity from public and private financiers) can be used in all partner countries and relies on strong partnerships with partner finance institutions and other key stakeholders, in order to achieve leveraged financing and thus contribute to sustainable growth and reduced poverty.  The figures are impressive and speak for themselves. From the creation of the first Blending Facilities in 2007, €2.7 billion of grants have been used under blending to make more than €50 billion of total investments possible, in order to provide better infrastructure and support to Micro, Small and Medium Enterprises, as well as to social and environmental sectors.

Drawing on the experience with the existing investment programs, and in particular the blending facilities, in autumn 2016 the Commission will make a proposal for a new Fund as part of an ambitious External Investment Plan in order to mobilize investments in developing third countries, with a structure similar to the successful ‘Investment Plan for Europe’. This will initially cover Africa and the EU Eastern and Southern Neighbourhood, with the objective of being extended to other regions at a later stage. €3.1 billion will be mobilised to this end, expected to trigger total investments of up to €31 billion and the potential to increase to €62 billion if Member States and other partners match the EU contribution. The External Investment Plan will be offering additional guarantees and concessional funds, will help local authorities and companies develop a higher number of bankable projects and make them known to the international investor community, and will also focus on targeted assistance to improve the business environment and good governance in the countries concerned.

It is crucial to work together to identify how to better attract the participation of the private sector in development projects, what are the barriers that prevent private sector from participating further, and how the Commission and its partner finance institutions can make the best use of EU resources in order to further increase the impact of our development cooperation.

But this is not new to us. The Commission already established a strategic framework to support the private sector in achieving inclusive and sustainable growth in developing countries in 2014, as called for in the Agenda for Change (the EU’s development policy, which refocused our aid to ensure that it supported those sectors, and countries, where it was most needed and where it could make the biggest difference).

Now, as key thinkers from the business world come together in Brussels, we need to look at how to further involve the private sector in the design and implementation of a potential Investment Plan for emerging countries, building on the experience gained through blending. We need to establish a continuous dialogue with the private sector so that we can work together on the most adequate mechanisms to boost investments, while keeping in mind the overall objective of poverty eradication.

The role of the private sector is key to achieving inclusive economic growth, to creating decent jobs, to moving to a green economy, to securing food and nutrition, to protecting the environment to mitigate and adapt to climate change, and to ensuring the social and economic empowerment of women and young people.

I will continue to keep these objectives at the forefront of my discussions with our international partners. We rely on the engagement of the business community to establish a continuous dialogue to find the most efficient way to team up in order to achieve our common goals and developing countries into a new global framework.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN agriculture agency chief calls on world’s mayors to make ‘global commitments local realities’

Ukraine: turning challenges into opportunities


Galileo and EGNOS programmes back in orbit powered with €70 billion

Immigration crisis at its very worst: EU to outsource rescue business to North Africa?

Russia can no longer be considered a ‘strategic partner’, say MEPs

IMF launches a new offensive against Germany

Nigel Farage and Boris Johnson: who forced the two ‘brave’ Brexiteers to quit?

Schengen: new rules for temporary checks at national borders

The issue of mental health for modern young doctors

Is continuous sanctioning the way to resolve the Ukrainian crisis?

Global ageing is a challenge – and an opportunity

EUREKA @ European Business Summit 2014: Innovation across borders – mobilising national R&D funds for transnational innovation in Europe

UN chief welcomes start of Church-mediated national dialogue in Nicaragua

We finally have a life-saving vaccine for Ebola

As tech disrupts our jobs, it’s not too late to turn pain into gain

Conflict diamonds and climate change: Cooperate, don’t compete over natural resources urges Guterres

Back to school: Schoolchildren to receive milk, fruits and vegetables at school thanks to EU programme

Why Sweden’s cashless society is no longer a utopia

COP21 Breaking News_04 December: Commitments Made to Reduce Black Carbon, Methane and HFCs

“Two Pack” approved: Is democracy chased away from Brussels?

What matters most to young Europeans?

Global economy to see ‘steady’ growth of three per cent in 2019 despite risks, says UN

The crunch ‘COP 24’ UN climate change conference: what’s at stake and what you need to know

This Mexican company is making biofuel from cactus plants

The Parliament rejects cultivating the wrong seeds of the Commission

Let the Italians have it their way, it may be good for all Eurozone

Germany may have a stable and more cooperative government

The quality of health education around the globe

CLIMATE CHANGE FOCUS: Climate-proofing Timor-Leste

Don’t dismiss start-ups founded by millennials. This is how they succeed

Brexit is happening now but the UK hasn’t really assessed the impact of a “no-deal” divorce

Palestine refugee crisis ‘expanding’; leaving highest number at risk this century across Gaza

Chinese tech investors are turning towards MENA. Here’s why

Pumping more money into banks but leaving them unregulated doesn’t help

Safe spaces offer security and dignity for youth, and help make the world ‘better for all’: Guterres

How can entrepreneurship tackle the migration crisis in the EU?

3 megatrends for the factories of the future

Yemen: ‘A great first step’ UN declares as aid team accesses grain silo which can feed millions

Search Engine neutrality in Europe in danger: Are 160.000 Google filtering requests good enough?

EU-Russia summit in the shadows of Kiev’s fumes

Brexit: European Commission intensifies preparedness work and outlines contingency action plan in the event of a no deal scenario with the UK

These five exercise trends will help society and your health

A Sting Exclusive: “Change is challenge, change is opportunity”, Commissioner Bienkowska cries out live from European Business Summit 2015

This is how travel hotspots are fighting back against overtourism

Europe split in confronting the US sanctions on Iran, Washington isolated

Movius @ MWC14: Discussing novel Communications Applications over a “CAFÉ”

Radioactive nuclear waste is a global threat. These scientists may have a new solution

Anti-vaccine sentiment one of 10 biggest health threats, says WHO

Human rights: breaches in Iran, Saudi Arabia and Sudan

EU Commission: a rise in wages and salaries may help create more jobs

High unemployment to continue haunting the EU

Google’s bare truth: Europe’s Chief denies EU accusations but admits they “don’t always get it right”

Italy’s populist government appears determined to drive EU economy and markets into recession

5 lessons for the future success of virtual and augmented reality

Scientists are using machine learning to unlock the mysteries of long-dead languages

Palestinian students ‘compelled to drop dreams because of financial cuts’

Quality Education on the table at the European Parliament

Libya stands at a ‘critical juncture’, UN mission head tells Security Council

Central African Republic: UNICEF outlines key actions so fresh peace deal can make real difference for children

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s