The European Commission and IFC have signed a guarantee agreement to fund the Global Gateway and support private sector investments, job creation and economic growth across the world, with a focus on EU enlargement countries, the Eastern and Southern Neighbourhood, sub-Saharan Africa, the Asia Pacific region, and Latin America and the Caribbean.
Through the Better Futures Programme, the European Union will provide up to €291 million in financial guarantees to IFC to de-risk investments. This is expected to mobilize more than $1 billion in private sector investments for Global Gateway projects across the energy, manufacturing and agriculture sectors, while also supporting micro and smaller businesses and climate adaptation projects.
This joint initiative builds on the EU’s and IFC’s experience in mobilizing investments at scale for innovative solutions to address development challenges such as climate change, fragility, conflict and crisis response, job creation, and inclusion, to help build resilient livelihoods.
De-risking involves reducing the financial risks associated with investments, particularly in emerging and developing markets. By providing guarantees, the program mitigates potential losses for investors, making it more attractive for them to invest in projects that might otherwise be considered too risky.
This Global Gateway guarantee is funded by the European Fund for Sustainable Development Plus (EFSD+).
"We're pleased to deepen our partnership with the European Commission to scale sustainable investments in emerging and developing markets," said Makhtar Diop, Managing Director of IFC. "By reducing risk, we unlock private sector potential—a powerful engine for job creation and economic growth. This collaboration drives new opportunities and helps replicate success and prove the strength of private sector solutions."
“Mobilized private investments are expected to reach more than €1 billion across sectors, including essential infrastructure and goods production, that lead to economic growth and job creation. The program will be deployed across all global regions, including Southeast Europe, Türkiye, Asia, Pacific, Sub-Saharan Africa, Middle East and North Africa. Today’s announcement includes a €90 million agreement that was signed last year for investments in Armenia, Azerbaijan, Georgia, Moldova and Ukraine.”
EU Commissioner for the Mediterranean, Dubravka Šuica, said: “Thanks to our collaboration with the IFC we improve the security and reliability of private investments in the Middle East and North of Africa. Today’s agreement will contribute to unleashing the untapped investment potential in these regions, unlocking new opportunities for small and medium businesses and supporting the green transition. Job creation and economic growth are an essential part of the New Pact for the Mediterranean.”
EU Commissioner for Enlargement, Marta Kos, stated: “The guarantee that we are signing today with our partner IFC has an important focus on supporting the EU accession process in our Enlargement and Eastern Neighborhood regions. It will boost economic convergence with the EU by mobilising private investment at scale in key sectors such as energy, manufacturing and agriculture. We are looking forward to a successful implementation of transformative investments.”
EU Commissioner for International Partnerships, Jozef Síkela, stated: "Through our partnership with IFC under the Global Gateway’s Better Futures Programme, we are unlocking over €1 billion in private sector investments that will create thousands of new jobs and stimulate entrepreneurship in our partner countries. This €291 million EU guarantee not only drives sustainable growth and resilience abroad, but also opens new markets and business opportunities for European companies. By investing in strategic sectors like energy, manufacturing and agriculture, we are fostering mutual prosperity, building strong economic ties, and supporting lasting economic transformation."
About EFSD+
Established in June 2021, the European Fund for Sustainable Development Plus (EFSD+) is part of the European Union’s investment framework and is the main financial instrument supporting the EU’s Global Gateway initiative. EFSD+ offers EU partner countries better access to financing options such as grants and guarantees, aiming to mobilise additional financial resources for sustainable and inclusive economic development. Financial guarantees under EFSD+ are legally binding agreements under which the EU agrees to pay the amount due in case of financial loss that lenders might face. By using blended finance, the EU provides a limited contribution to mobilise funding from financial institutions and other sources (including the private sector) to enhance the development impact of investment projects. Through EFSD+, the EU is channeling €39.8 billion in guarantee capacity for the period 2021 to 2027 globally.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.
About Global Gateway
Global Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, they aim to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
More information
European Fund for Sustainable Development Plus - European Commission
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Details
- Publication date
- 28 April 2025
- Author
- Directorate-General for the Middle East, North Africa and the Gulf