THE European Investment Bank acknowledged this week that European Union member countries have delayed ratifying South Africa’s accession to the Lome´ Convention for over a year, and the slow progress is holding up projects worth 550-million euros in which South African firms are involved.
Despite frequent requests by South Africa and other African countries, Belgium and the Netherlands have yet to complete the ratification process of the 15-billion euro grant known as Lomé IV bis, which was first agreed in November 1995.
The ratification of the long-awaited treaty will allow the European Development Fund, which channels aid into dozens of African, Caribbean and Pacific countries, to access 15-billion euros over five-years. Some 2,7-billion euros of these funds are destined for the European Investment Bank, which funds infrastructure investment.
South African associate membership to the convention will allow its firms and sub-contractors to tender for EIB-funded projects in other ACP countries. Despite the delays in ratifying the convention, the EIB’s board has passed projects worth 550-million euros. The projects, however, are on hold pending the ratification of the convention. South African diplomats are also expressing concern that the country will not be able to vote at the ACP meeting in Mauritius next month.
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