EDFI represents seventeen bilateral development finance institutions (DFIs) operating almost exclusively in developing countries and countries with transition economies. All institutions are European and majority owned by their respective governments. The institutions provide long-term financing to the private sector, with specific value-added development objectives, but operate on a sustainable commercial basis and are expected to be profitable. This strategic view aims to prove that business can be successfully conducted in developing countries, whilst promoting and enhancing corporate, social and environmental responsibility.

Since its foundation in Brussels in 1992, EDFI has fostered financial and technical co-operation among its diverse members. The Association also strives to strengthen information flow and financial co-operation between the European DFIs and the financial institutions of the European Union, most notably the European Investment Bank (EIB).

The EDFI institutions play a global and leading role in private sector development finance. The consolidated portfolio of member institutions at year end 2007 reached €15.1 billion, up from €12.3 billion in 2006. Every year, EDFI members make new commitments worth roughly one third of their portfolio. In 2007 this amounted to €5.9 billion, compared to €3.8 billion for 2006. Sub-Saharan Africa remains EDFI’s single most important investment region, accounting for one fifth of all investments. The equity portion within the portfolio reached 53% in 2007, up from 41% in 2005, a testament to the willingness of the European DFIs to challenge the predominance of loan finance and encourage stakeholding.

One of the most successful and innovative collaboration initiatives in recent years is the EUROPEAN FINANCING PARTNERS (EFP), a company investing in and lending to private sector enterprises in the ACP Countries (Africa, Caribbean and the Pacific). EFP was established in 2004 as a joint venture between 10 EDFI members and the EIB. It has continued operations throughout 2007, acquiring five new shareholders. Under a subsequent capital replenishment, the EIB provided an additional €100 million, and together 11 European DFIs contributed another €90 million, bringing the total allocation to €330 million. Since 2004, €161 million have been committed to 16 projects.

The European DFIs have, over many decades, made a significant contribution to the Millennium Development Goals (MDGs), in part by providing financial support and know-how to companies wary of investing alone in higher risk markets, but also by challenging mentalities and driving home the message of ethical and responsible business. To build on this work, the Association is actively promoting the adoption of joint standards in an effort to increase efficiencies and financial cooperation. A significant number of EDFI members have now introduced mechanisms to measure and manage developmental effects.

I am honoured to have been elected Chairwoman of the Association, taking over from Richard Laing, whom I thank on behalf of all EDFI colleagues for his invaluable contribution to and his excellent stewardship of the Association over the last year. I look forward to the challenges ahead.

Lastly, I would like to reassert our deeply-held belief that the private sector remains the main engine for sustainable economic growth, enabling prosperity for all and making a lasting improvement in the living conditions of the world’s poor.

Remedios Romeo
Chairwoman of the EDFI Board of Directors
Chairwoman & CEO of COFIDES