EU-Africa Infrastructure Trust Fund

Tackling Africa’s infrastructure deficit by blending grants and loans

What is the EU-AITF?

Created in 2007, the EU-AITF is a trust fund set up by the European

Commission and a number of European Union Member States. The EU-AITF’s The EU-AITF
main objective is to promote investment in infrastructure in sub-Saharan contributes to the
Africa1 through various forms of grants, which are blended with long-term SE4ALL initiative
investments by selected development finance institutions. In this way, the
EU-AITF helps to mobilise additional finance for projects, thereby increasing The “Sustainable Energy for All” (SE4ALL)
access to energy, transport, water and communications services. Ultimately, initiative was launched by the United
such projects contribute to poverty reduction and help foster sustainable Nations to achieve three main objectives
economic growth. by 2030:

EU-AITF funding comprises two different grant envelopes: • ensure universal access to modern,
• The regional envelope promotes infrastructure projects with a demonstrable affordable and sustainable energy
regional impact. services;
• The Sustainable Energy for All (SE4ALL) envelope supports regional, • double the global rate of improvement
national and local energy projects targeting SE4ALL objectives. in energy efficiency; and
• double the share of renewable energy
in the global energy mix.
What kind of grant support does the EU-AITF provide?
Since July 2013, the EU-AITF has been
• Technical assistance: for preparatory work, project supervision, targeted supporting the SE4ALL initiative with
capacity building. grants from an envelope of EUR 330m
• Interest rate subsidies: to lower interest rates and hence reduce the total earmarked for energy projects that meet
amount of debt. SE4ALL eligibility criteria published by
• Investment grants: to finance project components or part of the investment, the European Commission.
to increase the concessionality of the financing package.
• Financial instruments: guarantee cost financing, equity or quasi-equity
investments or participations, risk-sharing instruments.

1
The list of eligible African countries and more detailed information on the projects can be found on the EU-AITF website http://www.eu-africa-infrastructure-tf.net/.
 Tackling Africa’s infrastructure deficit by blending grants and loans.

EU-AITF cumulative grant approvals

reached nearly EUR 700m at the end
of 2016.

What types of project are • economic viability; 3. T

eligible?
• Energy: geothermal, hydropower, solar
power and wind power plants, trans-
mission lines, sustainable cooking fuels,
access, etc.
• Transport: road and railway networks,
ports, maritime and river routes, air
transport, etc.
• Water: water supply, treatment and sani-
tation plants, etc.
• Information and communication tech-
nologies: submarine internet cables, sat-
ellite-based infrastructure, etc.
Projects eligible for EU-AITF support must
be able to demonstrate both financial sus-
tainability and a development impact,
including:
• a significant contribution to poverty
reduction and economic development
and trade;
• provisions for sustainable operation and
maintenance;
• African ownership (projects identified as
priority projects by the African Union or
one of the African regional or national
bodies).
How is the EU-AITF governed?
Three main bodies govern the EU-AITF:
1. T he EU-Africa Reference Group on
Infrastructure, previously the Partner-
ship Steering Committee, provides stra-
tegic guidance to the EU-AITF Executive
Committee and ensures coordination,
knowledge-sharing and the coherence
of the Joint EU-Africa Strategy.
2. T he Executive Committee of EU-AITF
Donors is the decision-making body of
the EU-AITF and takes all operational
decisions.
 he Project Financiers Group brings
together development finance institu-
tions (the EU-AITF Project Financiers)
that have been nominated by the EU-
AITF Donors, as well as experts from
the European Commission. An EU-AITF
Financier that has identified a suitable
project together with the project pro-
moter submits a grant request to the
Project Financiers Group for review and
discussion; if the group endorses the
proposal it is passed on to the Execu-
tive Committee.
The European Investment Bank is the
Manager of the EU-AITF, responsible for
treasury and accounting.
The EU-AITF Secretariat provides support
to the EU-AITF Executive Committee and,
for some administrative tasks, to the Pro-
ject Financiers Group.

2 E U - A f r i c a I n f r a s t r u c t u re Tr u s t Fu n d
EU-AITF facts & figures since 700 ■ East Africa ■ West Africa
■ Southern Africa and Indian Ocean
launch 600 ■ Sub-Saharan Africa ■ Central Africa

500
Since the fund’s inception in 2007, EU-AITF

Millions
approvals have increased steadily and 400
disbursements have been accelerating in 300
recent years. As at 31 December 2016, the 200
EU-AITF had committed 91% of its total 100
available resources and the cumulative
0
total of grant operations approved by
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
the EU-AITF stood at EUR 698.4m –
EUR 445.1m under the regional envelope Net Approvals* Disbursements* (* cumulative, in EUR)
(since 2007) and EUR 253.4m under the
SE4ALL envelope (since July 2013).

■ East Africa ■ West Africa ■ Interest rate subsidies (IRS)

■ Southern
The cost of EU-AITF supported projects currently in their Africa and
investment IndianisOcean
phase estimated at EUR 7.9bn, which is 18.5 times the volume
■ Investment grants (IG)
■ Sub-Saharan Africa ■ Central Africa
■ Technical assistance (TA)
of EU-AITF grant support.
■ Financial instruments (FI)

Approvals by main region: Approvals by type of grant: Approvals by sector:

700 654.87
4.8% 3.7% 600
6.6% 6.7% 2.6%
5.7% 0.2%
28.2% 514.95
21.5%
500 455.15

400 27.7%
Millions

26.3% 335.65 62.7%

59.4% 300 260.97
43.5% 184.65
200

■ East Africa ■ West Africa ■ Interest rate subsidies (IRS) 84.23 ■ Energy ■ Transport ■ Water
■ Southern Africa and Indian Ocean 100
■ Investment grants (IG)
52.23 ■ Information and communication
Sub-Saharan Africa ■ Central Africa ■ Technical assistance (TA) technologies (ICT) ■ Multisector
■
15.44
■ Financial instruments (FI)
0
2007 2008 2009 2010 2011 2012 2013 2014 2015

Net Approvals* Disbursements* (* cumulative, in EUR)

■ Energy ■ Transport ■ Water

■ Interest rate subsidies (IRS)
■ Information and communication
■ Investment grants (IG)
technologies (ICT) ■ Multisector
■ Technical assistance (TA)
■ Financial instruments (FI)

E U - A f r i c a I n f r a s t r u c t u re Tr u s t Fu n d 3
 Tackling Africa’s infrastructure deficit by blending grants and loans.

List of Project Financiers

EUR 814.9m (EUR 484.9m for the regional
Pledged contribution amount
envelope and EUR 330m for the SE4ALL
(as at 31.12.2016)
envelope)

• European Commission: EUR 647.7m

• 13 EU Member States (Austria, Belgium,
Donors
Finland, France, Germany, Greece, Hungary,
(as at 31.12.2016)
Italy, Luxembourg, Netherlands, Portugal,
Spain, United Kingdom): EUR 167.2m

Manager European Investment Bank

© EIB GraphicTeam © Photographs and illustrations: EIB Photolibrary, iStock, TANESCO, Eric Le Pichon
African Development Bank, Agence Française
de Développement, BIO, CDP, COFIDES,
Development Bank of Austria, European
Project Financiers
Investment Bank, Finnfund, Hellenic Ministry
of Economy and Finance, KfW Bankengruppe,
LuxDev, PIDG, SOFID

For further information, contact:

digital: QH-02-17-451-EN-N ISBN 978-92-861-3246-9 doi:10.2867/573853
print: QH-02-17-451-EN-C ISBN 978-92-861-3247-6 doi:10.2867/712067
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