2001/50/EC: Decision No 2/2000 of the ACP-EC Council of Ministers of 15 December 2000 on granting financial support to an investment financing programme for industrial and business development in the ACP States
Date: 2000-12-15
Institutions: ACP Council of Ministers
Subjects: ACP countries, EU financing, European Development Fund, financial aid, industrial development, venture capital

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Official Journal of the European Communities

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DECISION No 2/2000 OF THE ACP-EC COUNCIL OF MINISTERS

of 15 December 2000

on granting financial support to an investment financing programme for industrial and business
development in the ACP States

(2001/50/EC)

THE ACP-EC COUNCIL OF MINISTERS,

Having regard to the Fourth ACP-EC Convention, as amended
by the Agreement signed in Mauritius on 4 November 1995,
and extended by Decision No 1/2000 of the ACP-EC Council
of Ministers, and in particular Article 282(5) thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

The Fourth ACP-EC Convention assigns a key role to the
private sector in helping to restructure the ACP econo-
mies, especially by creating jobs, boosting earnings and
integrating these economies into the global economy.

A substantial amount of funds has been allocated to
investment financing in both public and private sectors,
through a provision of EUR 1 825 million as risk
capital operations
from the European Development
Fund (EDF).

The total volume of risk capital commitments, for the
two financial protocols, stands, on 31 July 2000, at
EUR 1 312 million. EUR 190 million of approved
loans pending signature is to be added to that amount.
These two amounts represent EUR 1 502 million, that
is to say 82,3 % of the total resources provided for
operations of this type by the Convention and managed
by the European Investment Bank (EIB).

in particular, has adopted a new
The Community,
strategy for private sector development in developing
countries, placing emphasis not only on support
to
macroeconomic reform policies, but also on support to
intermediary and microeconomic levels.

financing. However,

The ACP-EC Council of Ministers considers it essential
that the current instruments and initiatives funded by
the eighth EDF are not hindered by lack of resources, in
the
particular for investment
current rate of commitment is maintained, the amount
of resources allocated for risk capital operations under
the Fourth ACP Convention runs the risk of being fully
utilised before the entry into force of the ACP-EC Part-
nership Agreement signed in Cotonou on 23 June 2000
and before resources under the new Investment Facility
become available.

if

The ACP-EC Council of Ministers took, on 27 July 2000,
Decision No 1/2000 on the transitional measures applic-
able from 2 August 2000 until the entry into force of
the ACP-EC Cotonou Agreement. That decision was
adopted taking into account
the need to ensure
continuity of development financial cooperation.

(7)

(8)

(9)

The financial resources available, in particular, for the
private sector should be reinforced, in order to prevent
exhaustion of resources from interrupting the flow of
financing.

Some EUR 300 million could be absorbed by invest-
ment operations in the ACP States over the next three
years,
in addition to the EUR 1 825 million already
programmed by the EIB. These resources should be
mobilised to fund an investment financing programme
in support of the private sector for all ACP States.

The risk-capital operations to be financed under this
Decision should also be complemented by significant
private sector funding and contribute to the enhance-
ment of
the funds
local management skills. Part of
earmarked for risk-capital operations under this Decision
should be used to underpin the development of local
financial

institutions.

(10)

The ACP-EC Council of Ministers will decide at a later
stage how to use the funds that would return to the
financing programme after investments have been repaid
by the borrowers,

HAS DECIDED AS FOLLOWS:

Article 1

The following unallocated programmable resources from the
eighth EDF and earlier Funds as well as unused funds for
interest subsidies and risk capital operations from the sixth and
seventh EDFs may be used, up to a maximum of EUR 300
million, to finance risk capital operations in ACP States, divided
up as follows:

— a maximum amount of EUR 183 million from the non-
allocated eighth EDF programmable resources for these
operations,

— a maximum amount of EUR 55 million from the non-allo-
cated sixth EDF resources for risk capital for these opera-
tions, and

— a maximum amount of EUR 62 million from the non-
utilised seventh EDF resources for interest subsidies for
these operations.

These funds shall be additional to the resources allocated for
risk capital operations under the eighth EDF and shall be
managed by the EIB.

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Article 2

Article 3

The EIB will be invited by the appropriate bodies to manage
this financing programme in accordance with the current
procedures and financing criteria laid down in the Convention
for the use of risk capital operations.

The ACP-EC Council of Ministers will decide at a later stage
how to use the funds that would return to the financing
programme after investments will have been repaid by the
borrowers.

The financing programme will come to an end three months
after the entry into force of the ACP-EC Cotonou Agreement.
After this period of three months, no decision may be taken by
the EIB.

The Commission shall be bound to take the measures necessary
to implement this Decision.

Article 4

This Decision shall enter into force on the day on which it is
adopted.

Done at Brussels, 15 December 2000.

For the ACP-EC Council of Ministers

The President

D. GILLOT