The Facility Investing for Employment (IFE) - an integral part of the Special Initiative "Decent Work for a Just Transition" - was created by KfW Development Bank (KfW) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The main purpose of the Facility is job creation in the private sector. Grant funding is therefore available only for projects which will create new jobs in the private sector of our partner countries..
While the primary goal of the Facility is the creation of new jobs, specific key performance indicators and bonus aspects are taken into account in the selection of projects:
- Number of new good jobs and cost per job
- Number of existing employees who benefit from improved working conditions or higher income
- Number of people participating in higher education or short-term job-related trainings
- Bonus criteria for number of jobs for women and youth, contribution to feminist development and just transition, synergies with other projects of the German Development Cooperation.
Therefore, projects which first demonstrate sufficient job-creation potential may receive additional points in the evaluation..
Component 1: Job Creation (compulsory)
The Facility only finances mature projects that have not yet started and that offer reasonable chances for being operationally and financially sustainable. Applicants are obliged to contribute own funds to complete the project finance..
The proposed investment project, which will lead to job creation, must fall within one of IFE’s four categories.
Component 2: Training Measures for the local labour market, with a perspective on potential employment opportunities in Germany (optional).
In addition to the job creation grant, applicants can apply for co-financing of training measures aimed at improving the quality of training for skilled workers, primarily targeting the national labour market, with an additional perspective for potential employment opportunities in Germany. While the job creation component is open to all sectors, this subcomponent is envisaged to focus on the following sectors: main and ancillary construction industry, metal and electrical industry, education and social services, food processing, transport and logistics, IT, as well as the hotel and hospitality industry.
Eligible activities include, for example, the construction, refurbishment and equipment of buildings, classrooms or workshops suitable for training, as well as language training or technical upskilling aligned with relevant labour market needs.