Multilateral Institutions Seek To Boost Mediterranean Private Sector Environment

by Lorys Charalambous, for LawAndTax-News

06 September 2007

It was announced earlier this week that World Bank Group member, International Finance Corporation (IFC) has joined forces with several other multilateral institutions to assist in the development of the Southern Mediterranean region.

The strategic partnership now consists of IFC, the European Investment Bank, the European Commission and the World Bank.

The aim of the initiative is to help create a favourable private sector environment in the Middle East and North Africa. The four multilateral institutions have agreed to share knowledge and training opportunities in innovation and new technologies, as well as urban development to promote private sector development.

This initiative aligns with the strategy of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), EIB’s instrument dedicated to the Euro-Mediterranean area, to stimulate the private sector in the Mediterranean partner countries.

Between 2002 and 2006, the facility provided a total of EUR 6 billion, with an increased share in favour of the private sector. FEMIP aims to devote 50% of its annual lending to the private sector, while public projects, mainly transport and energy infrastructure, should contribute to improving the investment climate.

IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments.

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