Revealed on Monday at the International Conference on Financing for Development, the guarantee aims to make borrowing more accessible in developing countries and attract private capital to sectors such as energy, transportation, and telecommunications. Target regions include the Middle East, North Africa, Eastern Europe, Central Asia and Latin America.
The mechanism is expected to mobilize up to 10 billion euros in financing for clean energy, green infrastructure, and SME development. For the first time, funding will be available to local and regional public bodies and private firms without sovereign guarantees, expanding access to EU-backed financing beyond national governments.
The scheme also extends to municipalities in EU accession and neighbouring countries, supporting the bloc’s enlargement and regional integration efforts.
“This new agreement will help position Europe as a trustworthy and reliable partner around the world. It expands the scope of our financing and strengthens the European Union’s ability to invest in high-impact projects, from basic services like water and health to clean energy, transport, and strategic value chains,” said Nadia Calviño, President of the EIB.
The guarantee falls under the European Fund for Sustainable Development Plus (EFSD+), part of the EU’s 300 billion euro Global Gateway programme, launched in 2021 to promote sustainable global partnerships. EFSD+ contributes to a 26.7 billion euro guarantee envelope backing EIB operations outside the EU through 2027.
“We are providing a five billion guarantee to unlock high-impact investments in clean energy, infrastructure, and SME development. By de-risking investments, we enable large-scale projects that wouldn’t happen otherwise—creating long-term opportunities for both Europe and our global partners,” said Jozef Síkela, Commissioner for International Partnerships.
In North Africa and the Middle East, the funds will back SMEs, renewable energy and infrastructure. In Central Asia, investment will focus on routes such as the Transcaspian Corridor to improve raw material supply chains. In Latin America and the Caribbean, digital and energy networks will be prioritized.
“This agreement will unlock essential resources for investment in energy, digital, and municipal infrastructure—crucial for seamless integration into the EU and sustainable growth in our Eastern Neighborhood,” said Marta Kos, Commissioner for Enlargement.
The move also supports the European Commission’s New Pact for the Mediterranean, which promotes regional connectivity and economic cooperation.
“Complementing policy with the right financing tools boosts the economic potential of the Middle East and North Africa. We are one step closer to a connected Mediterranean, especially in energy infrastructure and SME support, fostering mutual benefits for both the EU and its partners,” said Dubravka Šuica, Commissioner for the Mediterranean.
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