CGD’s Mikaela Gavas joins Gyude to discuss barriers to private investment in health and infrastructure projects and how a new initiative—an Accelerator Hub—could help local businesses and institutions in Africa develop financially viable proposals and connect them with investors.
CGD Policy Blogs
Through its European Investment Advisory Hub, the European Union (EU) has built solid experience in project preparation within its own borders by connecting project promoters and intermediaries with advisory partners who work directly together to help projects reach the financing stage. Building on this approach, we propose the establishment of an Accelerator Hub, which would provide targeted support to identify, prepare, and develop investment projects in Africa.
As the EU prepares to significantly scale up its deployment of blended finance, guarantees, and other risk-sharing tools aimed at stimulating investment in developing countries, it has stated its intention to use its development budget to incentivise private investment in health and education.
Redesigning Global Europe: The EU’s Neighbourhood, Development, and International Cooperation Instrument
EU member states and the European Parliament’s Foreign Affairs and Development Committees finally approved the new Neighbourhood, Development, and International Cooperation Instrument (NDICI)—Global Europe. The instrument, worth €79.5 billion over the period 2021-2027, marks a profound transformation of EU development policy and spending.
The Biden Administration May Join the European Union in a Ban on Financing Fossil Fuels with Development Dollars. Poor Countries Must Be Exempt.
Since taking office, the Biden Administration has taken several steps to address the climate crisis and plans to do more on the international stage. This trend will be in line with an earlier move by the European Union to “stop funding oil, gas, and coal projects at the end of 2021, cutting €2bn (£1.7bn) of yearly investments.” But a blanket ban on fossil fuels is likely to stifle economic growth and make poor populations in Africa even more vulnerable to the impacts of climate change.
It’s been almost a year and a half since the High-Level Group of Wise Persons published its report, setting out options for consolidating and streamlining the European development finance architecture. That report generated a sparring match between the two European development banks—the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) —as to which was better placed to become the new European Climate and Sustainable Development Bank (ECSDB)
This blog sets out the EU’s position as an international creditor and offer thoughts for what role the EU could play in debt relief.
As the possibility of a new Cold War between the US and China gains traction in some foreign policy circles, the scale of Chinese development finance has taken center stage. A closer examination suggests the cost to China of this lending is distinctly underwhelming. It would be cheap for the US and Europe to match China’s lending numbers –and in the interest of global development if it was done right.
The Wise Persons Group Report on Europe’s Development Finance Architecture: Merger, Acquisition, or Reinvention?
Earlier this month, the long-awaited report on the future of the European financial architecture for development was released. Are the report’s proposals feasible? And crucially, do they offer a magic bullet to the intractable state of the European development finance system? I argue that although some of the proposals go some way towards offering a solution to the current problem, politics will undoubtedly trump logic, and we will—at least in the near future—be left with a stalemate.