German govt launches fund for African Investment
German companies looking to invest in Africa can now apply for funding under the Development Investment Fund. The launch of the “AfricaConnect” program, which is open to German and European companies, has been done in Berlin, a statement from the German government has noted.
German Development Minister Gerd Müller: “The demand for good governance, the strengthening of private investment and fair trade – these are the three pillars of the new development cooperation with African countries.
It is now necessary to strengthen public development cooperation, in particular to expand technology and education transfers. As new instrument of the development investment fund, we are now creating the entry into an African SME promotion program with new attractive conditions for private investment: to Africa, there are the future markets!”
“The companies that want to invest in Africa often lack the right financing today, which is why only one percent of Germany’s foreign investment goes to Africa, which has to change because Africa is also changing. This is where the future growth markets will be: over the next ten years.
“Six of the world’s ten fastest-growing economies are in Africa, with countries such as Ethiopia, Ivory Coast and Ghana enjoying economic growth of seven percent, with the German economy contributing to this development.
“What is important now is that we have the necessary finance from the Minister of Finance in order to be able to implement the new offers in as large a number as possible, which is the only way we can keep the promise of the federal government to Africa which is up to one billion euros for the funding framework for more investment by SMEs in Africa,” continued Gerd Müller.
In the future, German and European companies will receive loans on attractive terms for their projects in Africa. Decisive for funding is the economic, ecological and developmental sustainability of the investment. Thus, funded projects have to create added value on the ground – training, skilled jobs, new perspectives for young people.
DEG – German Investment and Development Company – advises, audits and accompanies companies throughout the entire investment cycle.
According to Minister Müller: “We are closing a funding gap with the Development Investment Fund, and we offer SMEs a share of the risk in doing business in Africa. For example, a textile company can benefit and expand its production facility in Africa, and we support the emerging African start-up.
“More capital also means more jobs on the ground These are precisely the offers that companies and African partners want: Modern development cooperation in cooperation with business, and support for reforms in Africa.This is entirely in line with the Marshall Plan with Africa as our reform partnerships: who improves the investment climate, reduces bureaucratic hurdles and combats corruption among others.