The European Investment Bank (EIB) is playing an increasingly important role in Africa, especially in the infrastructure and extractive industries sectors. It has lent over $3 billion for projects in sub-Saharan Africa since 2000.
The size of the EIB's lending portfolio raises concerns because of the institution's lack of transparency and accountability, particularly regarding its operations outside the EU, and because of the significant environmental and social impacts associated with many of its projects.
Based in Luxembourg, the EIB is a public bank that was established in 1958 by the European Community, originally to provide financing for capital investment in Europe and to encourage European integration. It has since expanded its operations throughout the world. While the EIB is often referred to as the “development bank of the European Union,” the Bank does not have an explicit development mandate.
The EIB has become more active in Africa in the wake of the Cotonou Agreement in 2000, which established the Cotonou Investment Facility, and more recently following the establishment of the EU-Africa Partnership on Infrastructure, both of which are managed by the EIB. Despite the infusion of capital from the EIB into the continent, few within or outside Africa are aware of the growing power that the institution wields.