EC Sets Up Trust Fund For Infrastructural Development Of Africa

 8th OCT 2007

The European Commission (EC) said that it would set up a special trust fund for the development of infrastructure in Africa. The commission in a statement copied to the News Agency of Nigeria (NAN) in Lagos recently states that the trust fund will take off with an initial grant of 87 million Euros.

It said that the trust fund would domicile at the European Investment Bank (EIB), adding that the bank had also agreed to mobilise up to 250 million Euros in loans for African countries to develop their infrastructure.
According to the statement, EC and member states have supported the development of infrastructure in Africa with about two billion Euros per year and have launched an EC infrastructure partnership for Africa to develop interconnectivity.

The EC states further that it will raise its overall spending on Trade Related Assistance (TRA) to one billion Euro annually by 2010. "These funds are used to help develop the capacity to trade in partner countries by providing training and technical assistance, supporting private sector development, meeting health and safety standards for export, and facilitating regional market building," the statement said.

The statement said that EC had provided solid and increasing Trade Related Assistance (TRA) to Africa since the beginning of its development co-operation. It states that Africa in 2006, received around 40 per cent of the total EC TRA, which amounted to 940 million Euro, and that the commission is the largest donor of trade related assistance globally.

The statement adds that the European Commission's aid for trade is an essential vehicle to enhance regional integration and trade between developing countries. "It can help attract investment and build economic growth and poverty reduction.

"Regional integration support is a distinctive feature of the European Commission's approach to development co-operation, in particular for regions deeply engaged in regional integration, such as Africa.

"In the case of sub-Saharan region, the European Commission is also committed to support the aid for trade needs arising from the Economic Partnership Agreements.

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