EU and IFC Partner to Mobilize €1B+ in Private Investments for Global Gateway

Under the newly launched Better Futures Programme, the European Union will provide up to €291 million in financial guarantees to IFC.

The European Commission and the International Finance Corporation (IFC) have strengthened their collaboration by signing a landmark guarantee agreement aimed at catalyzing private sector investments across the globe. The initiative is a key pillar of the European Union’s Global Gateway strategy, with a strong focus on advancing sustainable development, economic resilience, and job creation in regions such as Southeast Europe, Türkiye, the Eastern and Southern Neighbourhood, sub-Saharan Africa, Asia Pacific, and Latin America and the Caribbean.

Unlocking Private Sector Potential through the Better Futures Programme

Under the newly launched Better Futures Programme, the European Union will provide up to €291 million in financial guarantees to IFC. These guarantees are intended to "de-risk" investments, thereby mitigating financial uncertainties for private investors. By reducing perceived and real risks, the program aims to stimulate more than €1 billion (over $1 billion) in private sector investments.

The investments will primarily target critical sectors, including energy, manufacturing, and agriculture, while also fostering micro, small and medium-sized enterprises (MSMEs) and advancing climate adaptation projects. This strategy is expected to address key development challenges such as climate change, economic fragility, conflict resilience, and social inclusion.

De-risking is a vital mechanism, particularly in emerging and developing markets where investment opportunities often face barriers due to political instability, market immaturity, or infrastructure gaps. By providing financial guarantees against potential losses, the EU and IFC partnership seeks to create an attractive environment for private sector players to participate in transformational projects.

Building on a Strong Foundation of Collaboration

This initiative builds on the EU’s and IFC’s long-standing partnership in mobilizing private finance for sustainable development projects. It is funded through the European Fund for Sustainable Development Plus (EFSD+), a core component of the EU’s external investment plan that supports the Global Gateway’s ambition to narrow the global investment gap, foster resilient infrastructure, and empower partner countries.

Makhtar Diop, Managing Director of IFC, emphasized the strategic importance of the agreement:

"By reducing risk, we unlock private sector potential—a powerful engine for job creation and economic growth. This collaboration drives new opportunities and helps replicate success and prove the strength of private sector solutions."

The initiative has already demonstrated momentum. As part of today’s announcement, a €90 million agreement signed last year is now active, supporting investment opportunities in Armenia, Azerbaijan, Georgia, Moldova, and Ukraine—countries deeply linked to the EU’s enlargement and neighborhood policy frameworks.

Strategic Focus on Enlargement and Neighborhood Regions

European Commissioners highlighted the broader political and economic significance of this partnership. Marta Kos, EU Commissioner for Enlargement, noted:

"The guarantee that we are signing today with our partner IFC has an important focus on supporting the EU accession process in our Enlargement and Eastern Neighborhood regions. It will boost economic convergence with the EU by mobilizing private investment at scale in key sectors such as energy, manufacturing, and agriculture."

Dubravka Šuica, EU Commissioner for the Mediterranean, echoed the importance of investment security in volatile regions:

"Thanks to our collaboration with the IFC we improve the security and reliability of private investments in the Middle East and North Africa. Today’s agreement will contribute to unleashing the untapped investment potential in these regions, unlocking new opportunities for small and medium businesses and supporting the green transition."

Driving Global Growth and Mutual Prosperity

Jozef Síkela, EU Commissioner for International Partnerships, underlined how the partnership aligns with the EU’s broader ambitions for global economic ties:

"This €291 million EU guarantee not only drives sustainable growth and resilience abroad, but also opens new markets and business opportunities for European companies. By investing in strategic sectors like energy, manufacturing and agriculture, we are fostering mutual prosperity, building strong economic ties, and supporting lasting economic transformation."

The Global Gateway strategy represents Europe’s vision of delivering trusted connections and sustainable investments around the world, in contrast to models based on exploitation and unsustainable debt. This new chapter in EU-IFC cooperation exemplifies how public guarantees can mobilize impactful private sector investments, bringing tangible benefits to millions while fostering global partnerships grounded in mutual respect and shared growth.