Sustainable Investment: Development Investment Fund for Africa

A new beginning in growth markets of the 21st century: with the Development Investment Fund, the Federal Government supports companies in their investments in numerous African countries. We can inform you about the funding programmes.

More small and medium-sized enterprises to and in Africa. This is the goal of the Development Investment Fund, which offers the private sector tailor-made financing solutions on favourable terms. The aim is for even more German and European companies to become involved in Africa, invest there for the first time or expand their business. The focus is on the reform-oriented twelve countries of the Compact with Africa initiative. In total, the Fund rests on three pillars:

AfricaConnect offers financing for small and medium-sized enterprises from Germany and Europe.
AfricaGrow is aimed at providing African SMEs with easier access to financial resources via funds.
Africa Business Network is a new networking and advisory service offered by the Federal Ministry of Economic Affairs and Energy.

AfricaConnect: Promotion for German SMEs

Long-term loans even where traditional commercial banks offer no or only expensive financing solutions: through AfricaConnect, your project can be substantially co-financed and the risks are fairly shared.

The offer is flexible, the range is wide: loan financing from 750,000 to five million euros (or in US dollars) and terms of three to seven years are possible. Your company's own share should be around 50 percent of the investment amount. DEG also helps you to structure the financing and provides advisory and financial support in implementing international environmental, social and corporate governance standards. The financing structures are lean and implementation is fast: the assessment up to the loan decision takes only a few months.
In order to receive funding, a project must be economically viable; your business plan and annual financial statements will therefore be reviewed by experts. The focus is on the countries of the Compact with Africa initiative, but the programme is open to all countries on the African continent. DEG has many years of expertise and a close-knit network there.

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AfricaConnect COVID-19 Response: Liquidity Support During the Crisis

Those who are actively doing in business in Africa and are facing difficulties due to the effects of the pandemic can apply for crisis liquidity assistance. With particularly attractive interest rates, AfricaConnect COVID-19 Response helps healthy businesses quickly and unbureaucratically.

The programme is aimed at subsidiaries of European companies that are active in Africa, have created jobs there and want to secure them - and now have liquidity bottlenecks as a result of the crisis. It is important that the companies were economically sound before and have prospects on the market after the crisis.
Quick help in difficult times: the loan can cover up to 100 percent of your liquidity gap. The conditions are even more attractive than with AfricaConnect investment financing - the interest rate is one to two percent per year. The maximum loan amount is four million euros, and the maximum term is seven years. Financing is possible in euros, dollars or selected local currencies. Disbursement is made directly to your African subsidiary.
AfricaConnect COVID-19 Response provides companies with financial resources to continue operations and cover running costs including rent, salaries or warehouses. The aim is to bridge temporary liquidity bottlenecks and thereby secure jobs. You will need a liquidity plan for the next twelve months for your application. You should also state how many jobs will be secured through the financing.

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AfricaGrow: Venture Capital for African Companies

More capital for innovative business ideas from Africa itself: the AfricaGrow fund primarily benefits small and medium-sized enterprises as well as start-ups from African countries with a special focus on the countries included in the Compact with Africa Initiative. The fund is overseen by a fund manager and invests in market-oriented African venture capital and equity funds with a strong private sector approach. These can, in turn, offer financing solutions to local businesses, so that new jobs are created and incomes improve. Technology start-ups in the fields of finance, education, health, mobility or e-commerce, are among the target group.

- Attracting additional investors at the level of the AfricaGrow fund through attractive risk sharing
- Strengthening sustainable economic growth and employment
- Supporting the start-up and private equity scene with capital for important investments

Exploit Investment Potential

In the next ten years, more will be built in Africa than has been in Europe over the last hundred years. Six of the ten fastest-growing economies are located there. Countries such as Ethiopia, Côte d'Ivoire or Ghana have an economic growth of seven percent. However, only one percent of German foreign investment and two percent of German foreign trade currently go to Africa, and only 1,000 German companies are active on the continent.

Africa Business Network: Supporting and assisting companies during market entry

The Africa Business Network of the Federal Ministry for Economic Affairs and Climate Action (BMWK) offers a comprehensive range of information, advice and support to companies that wish to do business in Africa. It brings together players from German foreign trade promotion and development cooperation, bundles the existing services and offers additional measures to support companies entering African markets.

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Sustainable Investment: Development Investment Fund for Africa

AfricaConnect: Promotion for German SMEs

AfricaConnect COVID-19 Response: Liquidity Support During the Crisis

AfricaGrow: Venture Capital for African Companies

Exploit Investment Potential

Africa Business Network: Supporting and assisting companies during market entry

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