Background and Context

Our Investment Approach

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, African countries are among the world’s fastest growing economies. 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 applicants to create 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.

people standing in front of a truck — KfW-Bildarchiv / photothek.net

Financial and Other Support offered by IFE

The funding offered by IFE is available for project partners from both the public and private sector (including public-private partnerships) that have conceptualized an investment project through which they intend to create jobs, but who are faced with challenges which can be partly or fully addressed through financial support.

Employees at facility — KfW-Bildarchiv / Rüdiger Nehmzow

Financial support will be provided to selected projects according to the following principles:

All applicants must be legal entities registered in a country in Africa or Europe (being a member country of the European Union or the European Free Trade Association). Applicants based outside the Partner Country may submit Concept Notes only in partnership/consortium with project partners registered and operational in the Partner Country.
IFE will not finance the entire cost of a project but will provide co-financing to supplement the resources mobilized by the applicant and its project partners. The rate of co-financing varies between 25% and 90% depending on the project type. Details and further modalities are published with each Call for Proposals.
Since 2025, IFE-contributions are between EUR 650,000 and EUR 10 million (or equivalent in the local currency of the Partner Country). The amount of the grant depends on the project and country. Projects which require a co-financing contribution above or below this range will not qualify for funding.
IFE provides funding in the form of grants. The grant does not have to be reimbursed by the grantee if it is used for the contractually agreed purpose and in accordance with the procurement principles stated in the financing agreement.

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Our Investment Approach

Financial and Other Support offered by IFE

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