MICROCAPITAL BRIEF: European Investment Bank, World Bank Partner to “Boost MENA,” Supporting First-time Entrepreneurs in the Middle East, North Africa

The European Investment Bank (EIB), the Luxembourg-based long-term lender of the European Union (EU), and the US-based multilateral World Bank Group (WBG) recently announced a joint initiative, Boost MENA, to support “first-time entrepreneurs”, particularly women and young people, in the Middle East and North Africa (MENA). As part of the effort, EIB and WBG intend to develop a facility that will provide capital coupled with technical assistance via intermediaries such as “business accelerators/incubators, seed funds, business angel networks, equity-crowd platforms, social impact funds and venture capital funds.”

The new initiative will draw upon findings from a report recently published by EIB, WBG and the European Bank for Reconstruction and Development (EBRD) entitled “What’s holding back the private sector in MENA? Lessons From the Enterprise Survey.” Based on data from 6,000 companies, the authors of this paper argue that greater access to capital and an “enabling” regulatory environment for businesses could be key to driving economic growth in the region.

As of December 2015, EIB reported total assets of EUR 571 billion (USD 637 billion) and a loan portfolio of EUR 504 million (USD 562 million). As of 2016, WBG has approximately 10,000 employees, oversees 12,663 projects in 179 countries and is comprised of 189 member nations. As of the same date, it had commitments of USD 60 billion in loans, grants, equity investments and guarantees to its members and private businesses.

By Michelle Dold, Research Associate

About the European Investment Bank (EIB)

Created in 1958, the European Investment Bank (EIB) serves as the long-term lending bank of the European Union (EU). In addition to supporting projects in EU member states, its priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” As of December 2015, EIB reported total assets of EUR 571 billion (USD 637 billion) and a loan portfolio of EUR 504 million (USD 562 million).

About the World Bank Group (WBG)

The World Bank Group (WBG) is a multilateral development organization headquartered in the US that aims to improve living standards for people in developing countries. As of 2016, WBG encompasses (1) the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); (2) the International Finance Corporation (IFC); (3) the Multilateral Investment Guarantee Agency (MIGA); and (4) the International Centre for Settlement of Investment Disputes (ICSID). As of 2016, WBG is comprised of 189 member nations with commitments of USD 60 billion to 12,700 loans, grants, equity investments and guarantees to its members and private businesses.

Sources and Additional Information:

[1] World Bank Press Release: “European Investment Bank & World Bank Group Partner to Support Entrepreneurs in the Middle East & North Africa”

[2] MicroCapital Universe Profile: The European Investment Bank (EIB)

[3] MicroCapital Universe Profile: The World Bank Group (WBG)

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