German Federal Ministry for Economic Cooperation and Development (BMZ) launches Development Investment Fund to attract investments in African markets
On June 4, 2019, German development minister Gerd Müller launched a new Development Investment Fund for investments in Africa. The new fund has three pillars: 'AfricaConnect', "'AfricaGrow', and the 'Business Network Africa'.
Under the AfricaConnect initiative, German and European companies can apply to receive loans on attractive terms for their projects in Africa, so long as their planned investment is ecologically and socially sustainable. Funded projects must create added value on the ground, for instance through training, the creation of skilled jobs, or through the introduction of new technologies into African markets, with a loan amount between €750 thousand (US$845 thousand) and €4 million (US$4.5 million).
AfricaGrow, starting later this year, will provide growth capital for small and medium-sized business in Africa in different risk classes. The AfricaGrow fund, anchored in the KfW Development Bank will additionally invest in African venture and equity funds so that these can promote additional companies.
The Development Investment Fund entails a Business Network Africa, which bundles advisory and support services for foreign trade promotion and development cooperation in order to facilitate the market entry of German small and medium-sized enterprises and the expansion of business in African growth markets.