Economic reforms and improved competitiveness have brought forth new, dynamic growth markets in many parts of Africa. African countries increasingly offer attractive prospects for companies and investors: a young population, growing availability of skilled labour, rising purchasing power, new markets, and integration into global value chains.
With annual growth rates of seven percent and higher, countries like Ethiopia, Ghana, Senegal, and Côte d’Ivoire were among the world’s fastest growing economies before the severe economic disruptions caused by the Corona pandemic. Many African countries have good prospects to continue these trajectories, now that the pandemic is over. However, Africa needs about 20 million jobs per year to provide its young population with prospects for the future. Under the Invest for Jobs brand, the German Federal Ministry for Economic Cooperation and Development (BMZ) has put together a package of measures to support German, European and African companies in investment activities that have a high impact on employment in Africa. The Special Initiative "Decent Work for a Just Transition" – the official title – offers comprehensive advice, contacts, and financial support to overcome investment barriers.
The development objective is to work together with companies to create up to 100,000 good jobs and to improve working conditions and social protection in its eight African partner countries: Côte d’Ivoire, Egypt, Ethiopia, Ghana, Morocco, Rwanda, Senegal, and Tunisia. The Special Initiative is making a targeted contribution to shaping the socio-ecological transformation of the private sector in line with a just transition, and to creating more and better jobs for women.
KfW-Bildarchiv / photothek.net
Within the scope of this Special Initiative, the Facility Investing for Employment of KfW Development Bank provides funding for companies, non-profit organisations, and public entities to overcome obstacles to investments. IFE contributes co-financing grants for employment-creating investments and accompanying advisory services, including environmental and social impact assessments. By doing so, IFE removes barriers to creating additional and better jobs in the private sector. Funding is made available by means of competitive Calls for Proposals.
The Facility uses a lean and transparent application process to identify and select the projects which show the highest potential to address barriers to investment and job creation. This includes, for example, the upgrade of electricity supply, the provision of access roads, the construction and equipment of training centres, or the improvement of the local supply industry.