Brussels: Europe and the Arabs

A new €80 million fund to support sustainable jobs and social impact in partner countries of the Southern Mediterranean was announced in Brussels in a statement by the European Commission.

The statement read: “The European Commission, the German Federal Ministry for Economic Cooperation and Development, and the German Development Bank (KfW) are collaborating to promote sustainable jobs in Southern Mediterranean countries through the Social Entrepreneurship Fund (SEF), a flagship initiative within the Mediterranean Compact. This is a significant step towards strengthening regional cooperation in peace and security and demonstrates the EU’s renewed commitment to the Mediterranean region. Social entrepreneurship contributes to addressing youth unemployment and gender inequality, as well as supporting clean and digital transformations. However, many social enterprises face difficulty accessing traditional funding due to their dual focus on financial sustainability and social impact. The SEF capital fund will help bridge this gap.” This initiative falls under the second pillar of the Compact and represents a key step in its implementation by leveraging private sector innovation and investment to create jobs, develop skills, and accelerate clean and digital transformations. It demonstrates how the Compact fosters cooperation and economic ties, unlocking new opportunities both within and beyond the Mediterranean region.

With a total contribution of €80 million, the Social Entrepreneurship Fund will support investment in small and medium-sized enterprises (SMEs) and startups in social sectors such as education, climate, and financial inclusion. The Fund comprises two components: a €45 million equity fund, which is operational today, and a €35 million debt fund, in addition to a technical assistance facility. This latter component is a long-term European program that helps partner countries improve their regulatory frameworks, strengthen institutional capacities, and invest in mobility. Together, these instruments will provide targeted financing for small social enterprises and specialized support to help create sustainable jobs in the Southern Mediterranean countries.

Commissioner for the Mediterranean, Dubravka Šuić, stated: “In the Southern Mediterranean region, SMEs provide more than 85% of jobs, yet they face significant challenges in accessing finance and investment. The EU is committed to inclusive growth and job creation. The Social Entrepreneurship Fund will strengthen burgeoning ecosystems, supporting long-term prosperity for a more resilient and equitable future in our region.”

The Mediterranean Pact aims to strengthen relations between the EU and its partners in the Southern Mediterranean, fostering cooperation and economic ties between the Mediterranean coast and beyond. Focusing on areas of common interest such as maritime security, the resilience of critical infrastructure, and foreign interference, the Pact seeks to deliver mutual benefits by implementing regional projects that provide opportunities for both individuals and businesses, with a particular emphasis on youth, women, and SMEs. (European External Action Service website)