ONE: EFSD vote boosts private sector but must work for fragile states and local actors

During today’s plenary session in Strasbourg, the European Parliament adopted the European Fund for Sustainable Development (EFSD), initially proposed by the European Commission in June 2016. The EFSD is part of the European External Investment Plan, aimed at fostering private investment in Africa and the neighbourhood.

Valentina Barbagallo, Brussels Policy & Advocacy Manager for ONE, said: “Today’s agreement shows that the EU is committed to implementing targeted measures to ensure that private investors don’t leave the poorest and most fragile states behind. At the same time, despite the efforts of the European Parliament and the Maltese Presidency, the decision to give preference to European investors and companies risks putting the local actors that this fund is intended to support at a disadvantage.

As the Commission  finalises its plans for the investment windows, it will be critical to ensure that funds are only used for projects that would not have otherwise received financial support. EFSD investments must also create local jobs and boost sustainable growth in the most fragile and poorest regions.”

***ENDS***

Note to editors

ONE called for the EFSD to :

• Allocate sufficient funds to impact investments in African Least Developed Countries (LDCs) and fragile situations;
• Ensure funds are exclusively used on projects that would not have otherwise attracted the private sector so to avoid local markets distortion;
• Develop specific tools to de-risk investment and foster healthy business environments that promote better governance and stronger national institutions;
• Ensure that local actors benefit from private sector investment by funding investments specifically targeted at supporting local actors.

European Fund for Sustainable Development – Read more

ABOUT ONE: ONE is a campaigning and advocacy organisation of nearly 8 million people taking action to end extreme poverty and preventable disease, particularly in Africa. Not politically partisan, we raise public awareness and press political leaders to combat AIDS and preventable diseases, increase investments in agriculture and nutrition, and demand greater transparency in poverty-fighting programmes. Read more at www.one.org.

For media queries please contact: Valentina Barbagallo, Policy & Advocacy Manager, Brussels [email protected], +32 471 23 92 68