Latest news with #EuropeanInvestmentBank
Business Insider
5 hours ago
- Business
- Business Insider
New EU regulation sparks bankruptcy fears in Africa's largest cocoa-producing country
A new European Union regulation has sparked concerns that it could have a devastating impact on the millions of farmers in the world's largest cocoa-producing country - Ivory Coast who rely on the industry for their livelihood. A new EU regulation demands proof that imported cocoa is not linked to deforestation The country is introducing a digital sales system for farmer identification and traceability, aiming to comply with EU requirements by 2026. Smallholder farmers in Ivory Coast face challenges in affording technologies and meeting administrative demands for compliance. Ivory Coast, the largest cocoa producer globally and in Africa, exports nearly two-thirds of its output to the European Union and its chocolate industry. But cocoa farming has come at a high environmental and social cost, contributing to widespread deforestation and remaining closely tied to child labour. According to a European Investment Bank report, between 2000 and 2019, Ivory Coast lost around 2.4 million hectares of forest to cocoa cultivation—an area roughly the size of Rwanda. In response, the European Union has launched initiatives such as the Sustainable Cocoa Initiative and the Alliance for Sustainable Cocoa to address deforestation and child labour in the supply chain. A key measure is a new EU regulation, set to take effect in 2026, that will require importers to prove their cocoa is not linked to forest loss. The regulation targets the roughly 10% of global deforestation driven by EU consumption. These efforts place increased pressure on major producers like Ivory Coast and Ghana, which together account for 60% of global cocoa output, to improve industry oversight, protect forests, end child labour, and ensure fair incomes for farmers. Though designed to promote sustainability, the policy has stirred deep anxiety among African producers who lack the technical and financial capacity to meet its rigorous demands. These producers now face the risk of exclusion from European markets and severe financial penalties for failing to provide the required proof of compliance. However, the burden of compliance remains steep. The demand for traceability, satellite monitoring, and strict documentation, while commendable from an environmental standpoint, poses a major challenge for the Ivory Coast's cocoa sector, which is dominated by smallholders operating in a fragmented, largely informal supply chain. Small farmers raise alarm as Ivory Coast initiates compliance Ivory Coast has taken steps to comply with the European Union's incoming deforestation regulation by introducing a digitalised sales and purchasing system aimed at facilitating traceability and verification. However, many smallholder farmers and domestic exporters in the country say they cannot afford the required technology or meet the administrative burden imposed by the new rules. According to two sources at the country's Coffee and Cocoa Council (CCC) who spoke to Reuters, around 900,000 out of an estimated one million cocoa farmers have received digital ID cards, which will also serve as bank cards under the new system. The system, which has already been tested with a sample group of farmers, cooperatives, and exporters, is scheduled to become mandatory starting October 1. Under the new arrangement, farmers will be paid directly by exporters via mobile money platforms after their cocoa beans are delivered to ports, effectively bypassing the traditional network of middlemen and cash-based payments. Despite this progress, industry insiders are raising concerns. A director of an Ivorian export company told Reuters that while the sector supports traceability and sustainability, the EU's regulation appears to prioritise the protection of European industries and consumers at the expense of African businesses. He warned that such policies could severely impact local exporters. Another source said that multinational companies are preparing to spend at least 200 CFA francs ($0.36) per kilogram to comply with the regulation, an investment most small cooperatives cannot afford. With the EU's implementation deadline fast approaching, pressure is mounting for international support, transitional funding, and a more inclusive framework that doesn't leave African producers behind. While large multinationals are already investing in compliance infrastructure to maintain market access, smaller domestic players risk being excluded.
RTÉ News
8 hours ago
- Business
- RTÉ News
€300m EIB loan secured for water infrastructure projects
The European Investment Bank is to provide a new €300m loan for water infrastructure projects in Ireland. The announcement was made this morning after a meeting between Taoiseach Micheál Martin and President of the EIB Nadia Calviño in Luxembourg. Mr Martin, attending a signing ceremony for the new loan at the EIB, said the bank was a "key partner for transformational investment across Ireland". He said the new investment will help Uisce Éireann to upgrade vital water infrastructure and that the loan aligned with the Government's new National Development Plan, announced earlier this week. The loan, signed in cooperation with the National Treasury Management Agency, is designed to enhance water security by extending water supply infrastructure and upgrading wastewater treatment plants. It also includes investments in stormwater drainage facilities to future-proof against more extreme periods of rainfall. Chris McCarthy, the chief financial officer of Uisce Éireann, said the investment will accelerate the development of Ireland's critical water services infrastructure. In recent years, the EIB has provided approximately €1 billion annually for public and private investment in water, housing and energy projects in Ireland.
Bloomberg
a day ago
- Business
- Bloomberg
Europe's Top Dollar Bonds Eclipse Treasuries in Safe-Haven Race
Dollar bonds from some of Europe's biggest public-sector issuers are now trading at yields below comparable US government debt — an unusual turn that underscores the diminishing appeal of Treasuries. The rate on some bonds issued by the European Investment Bank and Germany's state-owned lender KfW have dipped below comparable US government debt in recent sessions. The European securities have outperformed since April, when US President Donald Trump's tariff announcement roiled global markets and fanned a debate about US Treasuries' safe-haven status.
Maroc
18-07-2025
- Business
- Maroc
Morocco Boosts Connectivity and Attractiveness Through Royal Infrastructure Push
Under the leadership of His Majesty King Mohammed VI, Morocco has undergone a major transformation of its infrastructure, establishing itself as a key regional hub for connectivity, competitiveness, and trade. Thanks to a clear and ambitious Royal Vision, large-scale development projects have multiplied across key sectors including ports, airports, roads, railways, and logistics. This momentum reflects a strategic commitment to equipping the Kingdom with modern, high-performance infrastructure that supports economic growth, territorial integration, and social inclusion, while reinforcing Morocco's role as a strategic bridge between Africa, Europe, and the rest of the world. According to European Investment Bank (EIB) President Nadia Calviño, these initiatives are part of a broader model based on strategic planning, inclusive growth, and environmental transition—values driven by the Sovereign's vision. In an interview with MAP marking the celebration of Throne Day, she reaffirmed the EIB's support for the vision of His Majesty King Mohammed VI aimed at developing greener, more resilient, and sustainable infrastructure in Morocco. Tanger-Med: A World-Class Port Hub A crown jewel of Morocco's national port strategy, the Tanger-Med complex—launched in 2007 and expanded with Tanger Med 2—has become the leading port in both Africa and the Mediterranean in terms of container handling capacity, exceeding 10 million TEUs in 2024. As a powerful magnet for international investors, the port is a key link in the national logistics chain and an integrated industrial hub, hosting over 1,100 companies across various sectors. Meanwhile, the Dakhla Atlantic Port project, currently under construction, aims to equip the southern provinces with a strategic logistics infrastructure to drive economic development. Designed as a multifunctional port with industrial, commercial, and fishing capabilities, this future facility will boost regional integration, enhance trade with West Africa, and consolidate Morocco's maritime footprint along the Atlantic. In parallel, the Nador West Med project, located on the Mediterranean coast, strengthens the resilience and capacity of Morocco's national port system. With its deep-water terminal, the project aims to relieve congestion at Tanger-Med and support industrial development in the Eastern region by creating a new logistics and energy platform—complete with a free industrial zone and oil product storage infrastructure. Motorways and Expressways for Enhanced Mobility Morocco's highway network has expanded dramatically, growing from less than 100 km in 1999 to over 1,850 km today, connecting the Kingdom's main economic and urban centers. Major projects such as the Casablanca bypass, the widening of the Rabat-Casablanca axis, and the nearly completed Guercif-Nador motorway illustrate this ongoing momentum. At the same time, the rural road program has helped lift thousands of villages out of isolation, strengthening territorial cohesion and improving access to basic services. Air Transport: Modernized and Expanded Airports Morocco has also invested heavily in airport infrastructure. Facilities such as Marrakech-Menara, Fez-Saïss, Rabat-Salé, Agadir-Al Massira, and Casablanca's Mohammed V have all undergone major expansion and modernization to meet growing passenger demand. For example, the launch of a new terminal at Mohammed V Airport is set to boost its capacity to over 20 million passengers per year. Looking ahead, the National Airports Office (ONDA) has unveiled its ambitious 'Airports 2030' strategy, which aims to triple national airport capacity from 30 to 80 million passengers annually. The goal is to support Morocco's tourism, economic, and logistics ambitions—particularly as the Kingdom prepares to co-host the 2030 FIFA World Cup with Spain and Portugal. High-Speed Rail: A First for Africa Launched by His Majesty King Mohammed VI, the Al Boraq high-speed rail line marked a historic leap forward for Morocco and the African continent. Inaugurated in November 2018, the line connects Tangier and Casablanca in just 2 hours and 10 minutes—down from nearly 5 hours previously—and has become a powerful symbol of modernity that has transformed national mobility. Building on the success of the initial phase, the Sovereign has launched a new strategic extension between Kenitra and Marrakech. By combining innovation, territorial development, and economic competitiveness, the high-speed rail program reflects an ambitious vision for a connected, inclusive, and forward-looking Morocco. An Internationally-Recognized Model Morocco's proactive Royal Vision for infrastructure has earned the Kingdom consistent recognition across Africa and beyond. International rankings regularly place Morocco among the continent's leaders in logistics connectivity, road quality, port performance, and infrastructure efficiency. Under the leadership of His Majesty King Mohammed VI, Morocco has undertaken a deep transformation of its infrastructure—laying a solid foundation for sustainable, inclusive, and competitive development. These achievements, which open up significant opportunities for present and future generations, reflect a long-term vision centered on modernity, connectivity, and the Kingdom's strong integration into the global economy. MAP: 18 July 2025
Reuters
18-07-2025
- Business
- Reuters
Morningstar Sustainalytics raises EU lending arm's ESG risk score over military funding
LONDON, July 18 (Reuters) - The European Investment Bank's 'risk' score has been revised up by leading ratings provider Morningstar Sustainalytics for a second time this year due to the European Union lending arm's increasing push into military funding. Recent decisions by EU leaders mean the EIB can now directly fund military equipment makers, having only last year introduced a so-called 'dual use' financing policy for technologies such as drones or targeting systems that can also have civilian uses. Amelia Peden, Sustainalytics' lead EIB analyst said its key environmental, social and governance (ESG) 'risk' score had now moved up to 5.2 from 5, due to defence now being one of its permanent policy goals, with no ceiling on funding either. "With these additional developments, the bank further increases its exposure to human rights and geopolitical risks," Peden said, "which may lead to stakeholder scrutiny, and the potential to affect its credit risk profile in the market." Despite the increase - which followed one in January which lifted it from 4.2 - the EIB's risk remains "negligible" on Sustainalytics' scoring system and is still one of the top scorers of the near 16,000 banks, companies and other entities it rates. The EU's lending arm has a balance sheet that runs to over a half trillion euros which is bigger than the World Bank's and is aiming to lend 100 billion euros ($116 billion) this year, including 3.5 billion euros for defence. ($1 = 0.8595 euros)
