Action for impact
Key investments around the world help create stability, sustainable growth and fight climate change everywhere. The numbers show high EIB impact through its projects outside the EU
Connections between the economies of Europe and the rest of the world are increasingly close. Events around the globe can have a significant effect on Europe. So it’s important for Europe to contribute to stable growth in the countries beyond its borders.
That’s why the European Investment Bank devotes a big part of its resources each year to investments outside the EU that aim to boost development and fight climate change. The EU bank also works hard to ensure that each of these investments has a major impact. Here’s how we do it—and some impressive data to show the massive impact of our work.
First, the big numbers. In 2018, the European Investment Bank signed 101 projects outside the EU for €9 billion in lending. That includes €1.7 billion for 48 new projects in Africa, the Caribbean or Pacific countries, and €1.96 billion for 23 new projects in Asia and Latin America.
But it isn’t all about the size of the loan portfolio. What’s the impact of these investments?
Our new projects outside the EU in 2018 will result in:
These are impressive numbers. To understand their real impact, we measure whether it would have happened without our involvement. In other words, would some other bank have loaned the money.
The answer is clearly: No.
We assess the European Investment Bank’s contribution to every project outside the EU based on the bank’s expected financial and technical contribution, beyond the market alternative. We add in a range of indicators to rate our financial contribution, our financial facilitation and our advice.
Based on a range of indicators, including systematic tracking of project and technical assistance results and collaborative studies on project impact, 94 of the 101 new projects in 2018 earned an overall rating for the bank’s contribution that was either “significant” or “high.”
Of course, we don’t aim for easy, quick gains. We’ve been active in Africa, for example, for 55 years. Our investments are intended to have a lasting impact.
One element of that long-term strategy is the European Investment Bank’s role in advising on the early stages of project preparation, which often leads to loans from the EU bank later. Outside the EU, 42 new technical assistance operations supported project preparation, implementation and capacity building. This represented €38 million of support.
Of these technical assistance assignments, 19 concerned the preparation of new projects. If those projects go ahead, the European Investment Bank would expect to loan them about €1.2 billion. A key factor here is that when the EU bank lends, other institutions take it as a stamp of approval and join in. When the European Investment bank lends to these 19 projects, it would be expected to lead to investments worth €1.5 billion from other financiers.
All these numbers—and the methodologies behind them—are laid out in our report The EIB Outside the European Union: Financing with Global Impact. In the report, you’ll also find stories about the European Investment Bank’s impact on communities as diverse as: