The European Parliament today backed the Commission proposal for a European Fund for Sustainable Development (EFSD). The fund will bring together a new EFSD Guarantee Fund and existing tools into a single fund aimed to boost investment in Africa and help tackle the root causes of the migration crisis.
S&D Spokesperson for the Parliament’s Budget Committee and co-author of the report Eider Gardiazabal Rubial, said:
“Europe has a clear interest in the development of Africa. Over the last few years, we have launched many new tools to work with African governments and partners. This new fund will bring existing tools together in a single place – easing administration and helping avoid duplication. It will be complemented by a new 1.5 billion EFSD Guarantee Fund. It aims to mobilise up to 44 billion Euros in investment, helping to create jobs, boost growth and ensure stability in many developing countries.
S&D MEP and co-author of the report for the Parliament’s Development Committee Doru Frunzulica, said:
“Bringing these funds together in one place will help support the development goals of the EU. The core aim must remain the eradication of poverty by boosting public and private investment in Africa. We successfully ensured that social, labour and environmental safeguards will be included in the report. The EFSD will support local companies in the least developed countries and contribute to the implementation of the Paris Climate Agreement by targeting investments to sectors that advance climate change mitigation and adaptation.”
Soraya Post, S&D MEP responsible for the new fund in the Foreign Affairs Committee, added:
“We support the principles of this new fund however we need to work together with the Commission to make sure it works effectively and boosts the foreign policy of the EU. The European Parliament should have a clear role in the oversight of the new fund. We must ensure that it is focused on less developed countries – so that it supports our overall goal of eradicating poverty and achieving the Sustainable Development Goals 2030.”
Note for editors
Negotiations between the Council, Commission and Parliament will now begin on the final details of the new fund.