…Exceeds €10 Billion In Investments, Records Unprecedented Operations Numbers
By Clifford Agugoesi, Editor-in-Chief
The European Bank For Research and Development(EBRD) has released its Annual Review which describes the impact of the EBRD’s investments, projects and policy work during the year, and outlines its innovation in key sectors and initiatives.
According to the President of the EBRD, Sir Suma Chakrabarti, multiple records were broken in the year under review, making it a stellar year for the European Bank for Reconstruction and Development, which increased its impact in the 38 economies where it operates, putting in the best performance in an almost 30-year history.
The EBRD witnessed record investment exceeding €10 billion(US$11.23billion), an unprecedented number of operations (452) and its highest level of investment in the green economy (46 per cent of EBRD financing in 2019, underscoring the bank’s robust support for the global climate agenda.
Said Sir Chakrabarti: “When you dig deeper into the results, you find that we also reached new levels in our local currency and capital markets projects, as well as in work on gender and inclusion and with small and medium-sized enterprises. We more than honoured our pledge to shareholders to raise the quality and quantity of EBRD investments across the three continents where we are active.
Little of that success would have been possible without the work on policy reform that underpins much of our impact. Part of what makes the EBRD so effective is our unique combination of investment and policy expertise in our regions. Examples include reforming procurement processes to attract private investors in renewable energy, strengthening the investment climate in Central Asia and improving policies and institutions to enhance the skills of women, young people and refugees in the southern and eastern Mediterranean region. Another key achievement was the launch of the new EBRD good governance policies developed with our partners – the Environmental and Social Policy, Access to
Information Policy and Project Accountability Policy. These guidelines help shape and inform our investments. I could mention many other such efforts, so extensive is the Bank’s engagement.
No look back at 2019 would be complete without acknowledging the skill and dedication of EBRD staff, in Headquarters and across our regions, without whom such results would not have been possible.
In addition to our operational achievements, the Bank is in a strong financial position. We mobilised a record €757 million from donors to support our projects, of which €378.5 million came from the EU and a cumulative €194.5 million from the Green Climate Fund, the Climate Investment Funds and the Global Environment Facility. We also made a net profit of more than €1.4 billion – our best outcome since 2007 and one that reaffirms the EBRD’s financial sustainability.
These results, and our history as a successful development bank dedicated to building open-market economies, stand us in good stead as we take on the challenge of a world impacted by Covid-19. Our shareholders will be adopting the next five-year Strategic and Capital Framework (SCF), which will set the high-level agenda for EBRD operations in 2021-25. Our mission – fostering sustainable and inclusive transition by harnessing the private sector – is more relevant than ever. Global development goals cannot be reached without drawing in private sector investment, an EBRD specialty. The new SCF will enable us to update the way that we fulfill that mission and support our countries as they restore economies hit by the crisis.
As I approach the end of my second and last term as President of the EBRD, I am proud of the institution that I have had the honour to lead for eight years. That feeling has been reinforced by the achievements of 2019. I am sure that my successor will find the Bank in excellent shape and ready to embrace future challenges with confidence.”