Together in #TeamEurope for sustainable global transformation
A flying start for JEFIC in 2023 with the accession of a new member and the set-up of an innovative co-financing mechanism
The JEFIC network is happy to welcome a new member, the Polish development bank Bank Gospodarstwa Krajowego (BGK), starting from March 2023.
On March 17 the JEFIC founding members signed a Co-financing Framework Agreement in Brussels. This operational tool for their closer cooperation reflects the commitment made in 2021 and allows the JEFIC members to further increase their efficiency in European Development Cooperation.
JEFIC – Joint European Financiers for International Cooperation – is a network of European national bilateral development banks and financial institutions which mainly work with public sector partners in developing countries and emerging economies. Next to this JEFIC plays an important role in leveraging the private sector and in enhancing the local regulatory framework. The current members are AECID (Spain), AFD (France), BGK (Poland), CDP (Italy) and KfW (Germany).
They share a common vision for a truly joined-up European development finance system (alongside the PN-Practitioners’ Network, EDFI-European Development Finance Institutions, EIB-European Investment Bank and EBRD-European Bank for Reconstruction and Development) for increased, efficient investments towards the Sustainable Development Goals (SDGs), providing best-in-class solutions for beneficiaries, partners and donors in international development cooperation, acting as a “gateway” between public and private sector.
With a combined funding volume of more than EUR 21 billion in 2022, the JEFIC network provides a substantial share of global financing for sustainable development and handles around one third of the funding generated through the EU’s blending and guarantee instruments. A local presence including more than 200 local offices in 85 countries ensures very close cooperation.
The signature of a JEFIC Joint Declaration in 2021 opened the door to new members and made a commitment to stronger cooperation at strategic and institutional levels, increased knowledge sharing, identification of common priorities and enhanced European coordination. BGK joined the JEFIC network in March 2023.
JEFIC members share strategic objectives and operational opportunities to identify common financing activities. These activities are implemented jointly under the Team Europe Initiatives (TEIs) and Global Gateway, covering multiple target countries and sectors to achieve the SDGs. JEFIC members are currently contributing to 127 TEIs, at national, regional and global levels, and contribute to major Global Gateway flagships. For instance, JEFIC is involved in the deployment of the TEI Invest in Young Businesses in Africa, which aims at helping early stage businesses and young entrepreneurs and at creating decent jobs. Moreover, JEFIC members are supporting less mature market segments through local banks and through Public and Private Partnerships, bridging the gap between public and private sector.
JEFIC members are pooling their respective strengths to put their broad collective expertise to best use and provide a wide and varied range of services and support. Their goal is to ensure that the diversity of “Team Europe” will work as an advantage for beneficiaries, partners and international donors creating, in particular, a point of access to a broad pool of European know-how and financing power.
With this in mind, JEFIC remains an open and inclusive partnership ready to include other bilateral actors within the European financial architecture for development who are willing to join the network.
Joint Declaration on a European Strategic Cooperation Framework
The renewed partnership is based on 3 principles:
#TeamEurope approach and shared strategic vision. The institutions support the #TeamEurope approach, a concept born as the EU’s and Member States’ global response to the COVID-19 pandemic. This approach was incorporated into the European external action policies in order to improve the coherence and coordination of efforts between the different European actors involved in external action.
Mutual trust, transparency and visibility. The Member States’ institutions have identified common priority areas and countries for their cooperation that allow JEFIC to develop its own project pipeline. JEFIC partners contribute to greater European visibility in cooperation and coordination with the EU.
Pragmatism and pooled resources. The Member States’ institutions will promote a strong and pragmatic European partnership. To maximise the impact of the investments, JEFIC projects will draw on pooled resources – this means co-financing and joint implementation, but also the sharing of local and technical expertise and common pipeline generation.
Reflecting their commitment to an effective and efficient European financial architecture for development, the four founding institutions have signed a co-financing framework agreement on March 17, 2023, in Brussels.
With this Agreement, they set up an innovative finance mechanism allowing for improved efficiency and a better response to partners’ needs, to design tailor-made solutions in terms of support, funding volumes, financial instruments, as well as mobilising regional and sectoral expertise in line with the Team Europe Initiatives and Global Gateway:
Through the Agreement, JEFIC members will increase the efficiency of their co-financing operations targeting SDGs and support the implementation of EU development policies.
AECID, AECID, the Spanish Agency for International Development Cooperation, is the main management body of the Spanish Cooperation, aimed at poverty reduction and sustainable human development. Its strategic roadmap, in line with Agenda 2030, is the 5th Master Plan for Spanish Cooperation, based on a human rights approach; it pays special attention to three cross-cutting issues: gender, environmental quality and respect for cultural diversity. AECID’s toolbox includes technical assistance and financial cooperation, managed through FONPRODE (Fondo para la Promoción del Desarrollo, Spanish Fund for the Promotion of Development). Launched in 2011, it includes grants and loans, and implements both debt and equity operations
Agence Française de Développement (AFD) implements France’s policy on international development and solidarity. Through its financing of NGOs and the public sector, as well as its research and publications, AFD supports and accelerates transitions towards a fairer, more resilient world. AFD is part of the AFD Group, along with its subsidiary Proparco, which is dedicated to private sector financing and member of the EDFI network, and Expertise France, a technical cooperation agency and member of the Practioners’ Network. With our partners, we are building shared solutions with and for the people of the Global South. Our teams are at work on more than 4,000 projects in the field, in the French Overseas Departments and Territories, in 115 countries and in regions in crisis. We strive to protect global public goods – promoting a stable climate, biodiversity and peace, as well as gender equality, education and healthcare. In this way, we contribute to the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Towards a world in common.
Bank Gospodarstwa Krajowego (BGK) is the Polish development bank with a mission to support sustainable social and economic growth of the country. BGK builds social capital, develops entrepreneurship and provides responsible financing by cooperating with business, public sector and financial institutions and responding to economic needs and undertaking initiatives promoting sustainable development. BGK has been actively engaged in building its development cooperation portfolio, i.e. by indirect management of the EU funds since passing the pillar assessment accreditation in December 2020.
Cassa Depositi e Prestiti (CDP) is the Italian National Promotional Institution that has been promoting the sustainable development of the country since 1850. It supports companies, finances infrastructures, promotes investments of the public administrations and it is a shareholder of leading Italian companies operating in strategic sectors. CDP is also the Italian Financial Institution for International Cooperation and Development Finance with the objective to promote sustainable growth initiatives in developing countries and emerging markets, by offering a wide range of financial products to public and private entities.
KfW is one of the world’s leading promotional banks. It uses its decades of experience to work on behalf of the Federal Government and the federal states of Germany to improve economic, social and environmental living conditions at home and abroad. KfW Development Bank is responsible for part of KfW’s international business, and the two group subsidiaries, KfW IPEX-Bank and DEG, are also involved. While KfW IPEX-Bank is active in international project and export finance, DEG finances and advises private companies investing in developing countries and emerging economies.
