1. Redesigning the External Investment Plan to be a Game-Changer for Africa
- Author:
- Mikaela Gavas
- Publication Date:
- 10-2019
- Content Type:
- Policy Brief
- Institution:
- Center for Global Development
- Abstract:
- Despite their potential to achieve high development impact, projects in the poorest and most fragile countries, most in sub-Saharan Africa, are chronically underfinanced by Euro- pean development finance institutions and private investors owing to real or perceived low risk-adjusted returns. The External Investment Plan and its risk-mitigation tools, if struc- tured right, have the potential to mobilise investment where the need is greatest. To make this happen, the new European Commission should n clarify the strategic objectives of external investment and steer it towards leveraging high-risk capital for underserved markets; n explicitly focus assistance on the poorest countries through clear project selection criteria; n provide demand-driven technical assistance and oper- ationalise policy dialogue to improve the business envi- ronment; and n federate the development finance institutions focusing on steering policy, encouraging best practice, and har- monising procedures and results amongst the develop- ment finance institutions and multilateral development banks.
- Topic:
- Diplomacy, International Cooperation, European Union, and Investment
- Political Geography:
- Africa, Europe, and Sub-Saharan Africa