DEG offers support for German companies to invest in Africa
So far, German SMEs have been hesitant to invest in the African continent. There are so many reasons for this. One hurdle is to obtain suitable financing.
The Development Investment Fund of the Federal Ministry for Economic Cooperation and Development (BMZ) is intended to facilitate investment in Africa.
The “AfricaConnect” programme for which DEG is responsible is part of this fund. DEG Managing Director, Christiane Laibach recently presented the programme together with Federal Minister Gerd Muller in Berlin.
With financing via AfricaConnect, DEG supports German and European companies in their investment in Africa.
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“This is where the future growth markets lie”. Africa is home to six of the world’s ten fastest growing economies”; said Mueller.
The loan amount can be EUR750, 000 and EUR4 million with maturities of three to seven years. Compliance benefits from the special model of risk sharing and DEG’s experience and network, making it easier for them to decide in favour of African continent.
Basically, all European companies may apply for financing through AfricaConnect. Of particular interest are investment in the “Compact with Africa” countries like Egypt, Ethiopia, Benin, Burkina Faso, Cote d’ivorie, Ghana, Guinea, Morocco and Rwanda. Others are Senegal, Togo and Tunisia. As of now, financing enquiries can be submitted to DEG.
AfricaConnect
AfricaConnect helps European companies enter Africa on attractive terms. This new financing solution promotes and facilitates investments by European companies in African countries. It is aimed first and foremost at those with business ideas for the Compact with Africa partner countries.
African markets have been generating positive momentum for years. Boosting economic development in reform-oriented African countries is also the objective of the G20 Compact with Africa initiative, which was launched under the German G20 Presidency in 2017.
The Compact with Africa countries are Benin, Burkina Faso, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia. German support for the Compact with Africa is being provided partly through the Development Investment Fund (EIF) of the German Federal Ministry for Economic Cooperation and Development (BMZ). AfricaConnect forms part of this fund and is being implemented by DEG.
German and European businesses can use AfricaConnect to obtain financing. Companies with innovative business models that are creating skilled jobs on the African continent are especially important to AfricaConnect.
DEG offers support for German companies to invest in Africa
