2006-2016 Report : Promoting funding and security for investments : ideas to take action
IPEMED agrees with the idea that over the next fifteen years, the investment needs for infrastructures in SEMCs will be higher than €250 billion. Funding is a major issue, especially because risk perception increased since the Arab revolutions. Public funding, especially the use of budget appropriations, will be limited and international funding will not be sufficient, even though it is increasing.
Developing a context favourable to PPP
This is the reason why IPEMED encourages public-private partnerships, including the mobilisation of banks as well as international and local investment funds. Our think tank provided a state of the art on PPP good practices and success conditions and presented it during seminars (Paris, Tunis, Casablanca and Beirut) organised with local public authorities and private actors.
Building trust to foster long-term investments in the Mediterranean
Following this observation on the necessity of PPP, IPEMED became one of the leaders of the reflection on security for investments, on the definition of an appropriate environment and on the implementation of a legal framework favouring the attractiveness of the Mediterranean region. In order to create an adapted financial structure, our think tank took part in the reflection on the creation of a regional development bank. The project has not gone through yet, however the reflection contributed to highlight the funding issue in the region in the works of States, donors and private actors.
Standardising legal frameworks to secure investments
IPEMED was one of the founders of the ISMED group, along with the European Union, the OECD and the MIGA. Thanks to this dynamic, the issue is officially on the OECD agenda with four objectives: creating a favourable environment especially at the legal level, implementing a supporting task force for PPP projects, offering a better risk coverage and enabling access to local funding and Islamic finance.
Promoting financial tools specific to SMBs
IPEMED ‘s reflection was broadened to company funding - especially for SMBs that local banks do not support sufficiently. IPEMED recommended a better mobilisation of local savings on investments boosting the economy and on the association of international financial institutions with local banking sectors.
Within IPEMED coproduction reflection, promoting a win-win economic cooperation model, security of investments was identified as a key element.
“The financial sector is representative of IPEMED’s strategy: favouring a long-term approach while promoting practical actions on the ground, via micro-economy and project cooperation. Today, the most important issues in SEMCs are security and employment. Europe must offer them a renewed political, economic, social and environmental partnership. Via its works on coproduction and security of investments, IPEMED contributes to promoting this co-development partnership, thus favouring a more integrated economic and financial space.”
Michel Gonnet, Associate expert
Associate experts : Michel Gonnet
Main publications :
- Les notes d’Ipemed, n°3, « L’espace financier euroméditerranéen », October 2009
- Construire la Méditerranée, « Partenariat public-privé en Méditerranée », February 2012
- Etudes & Analyses, « Les banques postales et les services financiers dans les pays du Maghreb : état des lieux et perspectives », October 2013
4 small high-level seminars
1 partnership with the ISMED initiatve
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