This cooperation between European institutions has led to the signing of several agreements that provide a framework for their investments, such as the Principles on Responsible Financing and Guidelines for Offshore Financial Centers.
It has also led to the creation of two mutual funds:
- European Financing Partners(EFP), dedicated to financing the private sector in the ACP (Africa-Caribbean-Pacific) region,
- Interact Climate Change Facility(ICCF), dedicated to the development of renewable energies and energy efficiency in Southern countries.
This approach reflects the commitment of European Development Finance Institutions to pool their resources and harmonize their practices in order to increase their impacts on development. It also contributes to enhancing their results and their joint positions on the private sector’s role in the South with national governments, international organizations and the European Union.
Building on a portfolio of about EUR 50bn in 2020, EDFI members are continuing to develop their technical and financial cooperation via staff training and exchanges, the organization of regular meetings between their teams, cofinanced operations…
In 2016, EDFI Management Company (EDFI MC) was established. It implements European Union financing for business development. EDFI MC manages ElectriFI and AgriFI, two instruments financed by the EU to promote renewable energies and sustainable agriculture in developing countries, as well as other cofinancing mechanisms (such as European Financing Partners (EFP) and the Interact Climate Change Facility (ICCF)). In February 2021, PROPARCO acquired a 12.5% stake in EDFI MC.
By working exclusively with the private sector, EDFI has developed a specific role in Europe and among European institutions based on its extensive experience and expertise. For example, 74% of European Union funds allocated to the private sector in Sub-Saharan Africa are channeled through EDFI.