The ECOWAS Bank for Investment and Development (EBID) and the European Investment Bank (EIB), with the backing of the European Union (EU), have launched a €100 million financial agreement to fund climate action and environmental sustainability initiatives in the ECOWAS region. The action will enable the region to combat climate change, improve livelihoods, and reduce poverty.
A Major Project for Regional Development
The €100 million plant, part of a €150 million financing facility, is the first EIB-EBID project. This funding will help finance economic development, climate action, and sustainability in West Africa by filling critical financing gaps. The program will assist in providing sustainable livelihoods, reducing poverty, and creating long-term development.
The partnership will be used to finance renewable energy projects, such as small and medium-sized photovoltaic systems, sustainable agriculture, and water treatment. Through the financing of these sectors, the partnership hopes to make a major contribution to climate mitigation in the region.
Strategic Vision and EU Alignment
This project also fits the agendas of ECOWAS and the EU goals for Africa, specifically through the Green Energy Initiative and Global Gateway. These projects aim to promote connectivity between Europe and Africa, strengthen regional integration, and achieve sustainable development on the continent.
Furthermore, the partnership directly meets the ECOWAS Vision 2050 objectives, which include environmental conservation, economic growth, private sector expansion, and regional integration. It also complements the ECOWAS Regional Climate Strategy and the Action Plan for 2022-2030.
The cooperation is likely to create a total investment of not less than €300 million, which will impact several Sustainable Development Goals (SDGs), including clean energy, sustainable agriculture, clean water accessibility, health, and quality education..
EIB Vice-President Ambroise Fayolle, said, “I am very delighted to sign this first operation with the EBID to support economic development, climate action and environmental sustainability in the ECOWAS region. It will help to bridge the financial gap in this region while contributing to reduce poverty and ameliorate daily lives.“
He added, “By contributing financially to this project, the EIB demonstrates its commitment to regional integration and developed infrastructure for the benefit of local populations. Through EIB Global, our branch dedicated to development, we aim to support the EU’s Global Gateway initiative and key sectors in the region such as innovation, digital economy, renewable energy, water, agriculture and transport.”
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Assisting Sustainable Development with Technical Support
In addition to the loan, the EIB will also offer a technical assistance program on climate action with training and capacity building. The program will equip local stakeholders with the capabilities and competencies essential in the implementation of sustainable development projects.