The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). The Special Initiative operates under the brand Invest for Jobs. 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.

The Facility IFE supports investment projects that create a significant number of jobs. With its support, IFE removes barriers to investment and thus contributes to the creation of good jobs in the private sector. Private companies as well as public and non-profit organisations can submit investment proposals.

The Facility awards grants ranging from EUR 650,000 to EUR 10 million per project for the job creation component. Preference will be given to projects that combine job creation with social protection measures, such as:

• Projects that give employees and their families access to social protection benefits beyond mandatory minimum requirements (e.g., additional health or accident insurance, pension schemes or other social protection measures offered by the employer),

• Projects that formalise the employment status of workers who are in informal employment,

• Projects that contribute to the promotion of women’s employment or to the socially just transition to a climate-friendly economy.

In addition to the application for a grant, investors will have the option to apply for temporary co-financing by IFE of additional social protection schemes that are provided to employees and their families. Social protection benefits provided to workers in informal jobs are also eligible for co-financing. These social protection schemes must go beyond the minimum standards required by law. This could cover:

• Enhanced social security (e.g., additional health or unemployment insurance) or

• Investment in social measures (e.g., kindergartens, healthcare centers, conversion of workplaces with the aim of making them more accessible for persons with disabilities),

• Combinations are possible.

The grant amount per job created must not exceed EUR 10,000. Projects with a better grant / job ratio have better chances for being selected. The Facility only finances mature projects that have not yet started and that offer reasonable chances for being operationally and financially sustainable.

Applicants must provide own financial contributions towards the overall project expenditure in the required proportion. The specific grant amount awarded depends on the financial capabilities of the applicant and the project category. Applicants must prove that all reasonable finance sources have been explored, but a funding gap remains. The grants are disbursed during the investment phase of the project and in accordance with achieved milestones.

Please go to Background and Context for more information about IFE.

From 2020 to 2022 IFE implemented a Corona Response Programme on behalf of the German Federal Government. This programme has now ended.

The Facility uses a lean and competitive project application process to carry out its Calls for Proposals in an agile and demand-driven manner.

The process is broadly similar to that of a “Challenge Fund”. IFE is looking for projects that are at an advanced stage of conceptualization and planning – which means they must be ready for implementation within the next 12 months (with preference for even shorter time frames) and the resources and partners needed to carry out the projects must have been identified. The preparation phase and the investment phase together should not exceed 30 months.

The Facility IFE selects projects through a competitive, objective, and transparent two-stage application process.

Stage 1: The Call for Proposal invites applicants to submit Concept Notes. After an eligibility verification and qualitative assessment, Concept Notes are scored and the most promising are ranked based on qualitative evaluation criteria and their contribution to the following Key Performance Indicators:

• Number of new and good jobs (KPI 1);
• Number of existing employees who benefit from improved working conditions, social protection or income (KPI 2);
• Number of people, participating in higher education or short-term job-related trainings (KPI 3).
  

Projects that contribute to the achievement of additional development policy objectives benefit from a bonus system. Bonus points will be awarded if projects fulfil one or more of the following criteria:

• More than 25 % of jobs created will be for youth,
• Promotion of women in employment / women in business / improvement of working conditions for women / specific training for women,
• The Project contributes to the socially just transition to a climate-friendly economy (“Just Transition”),
• Improved access to social protection of existing and new employees, self-entrepreneurs and their families (e. g. health and unemployment insurance, pensions, extended maternity/paternity leave, family allowances etc.),
• Positive synergies with other projects supported by the Special Initiative.

Please refer to the Guidelines for Applicants in our Download Center for a full list of bonus criteria.

Stage two: The shortlisted applicants are invited to submit a detailed Full Project Proposal. The received Full Project Proposals are subject to a detailed analysis (due diligence), which may also involve an onsite visit. If IFE approves a project, it offers the applicant (individual entity or consortium) an agreement for the grant amount determined during the due diligence.