On July 6, the new European Fund for Sustainable Development (EFSD) was served in European Parliament. Created by European Commission EFSD aims to manage EU grants that is served by public and private sources strengthening the development of the European Neighbourhood and Africa. Herewith EFSD intends to cope with the roots of the irregular migration from these countries and also helps to fulfill the investment plans of the 2030 Sustainable Development Goals (SDGs) agenda. Through EFSD, signatories of Catonou agreement (conducted on June 2000) will benefit from this financial package for their investment in Africa regions.
As an highly significant component of European External Investment Plan (EEIP), EFSD is expected to invigorate the economic activities between Africa and EU neighbourhood countries.
There are three pillars of EEIP; the first supplies advanced access to finance while combining current investment resources with an enhanced guarantee that is expected to be in unison with mediator financing institutions. On the other hand, NGOs points out the risk factors of the strategy. Advocator of this idea points out that big amount of money would be served to transnational corporations at the expense of people in poverty for so-called support.
Oxfam’s EU development policy adviser Hilary Jeune said in her speech to the Eurodad (European Network on Debt and Development) “The Parliament has fought hard to ensure the External Investment Plan supports sustainable development. However, the new EU plan’s focus on migration could risk diverting aid away from poverty eradication. Development cooperation must focus on the actual needs of people, not on stopping them from moving. When development money is used to subsidise private investors, European companies are actually more likely to profit than are the domestic businesses who contribute most to poverty alleviation.”
Only time will show how the recipient countries and private companies will use the funding.