The Facility Investing for Employment
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The Facility Investing for Employment (IFE) is an investment Facility created by KfW Development Bank (KfW) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) as an integral part of the Special Initiative on Training and Job Creation. For more information regarding the Special Initiative and its range of offerings, please visit its website Invest for Jobs.
IFE provides co-financing grants for new investment projects with a high job creation impact. The selection of projects is based on a competitive application process. IFE looks for an optimal allocation of available funding to projects with the highest plausibility of success and expected return in terms of the number and quality of new jobs created.
profound impact of the Covid 19 pandemic on the economy and employment in
partner countries, the Facility Investing for Employment (IFE) launched the
"Corona Response Programme" in 2020. The Corona Response Programme
(CRP) component is dedicated to counteracting pandemic-related job losses in
Africa. To allow for a rapid and effective implementation, CRP funds are
disbursed to eligible small and medium-sized enterprises (SMEs) through
selected financial partner institutions (PFIs) in the partner countries. These
PFIs were pre-selected by KfW Development Bank and come from Ethiopia, Ghana,
Rwanda, Senegal, Ivory Coast, Tunisia and Morocco. Due to their market
proximity, they understand best local conditions, challenges and effects of the
pandemic and can therefore systematically identify the SMEs that are eligible
for financial support.
grants allocated within the CRP, the beneficiary SMEs can cover their interest
liabilities or operating and personnel costs, which are essential for
preserving threatened jobs. The CRP targets SMEs that are presently in a
precarious situation but demonstrated financial vitality and growth potential
prior to the onset of the pandemic. In addition to complying with financial
eligibility criteria, qualifying SMEs are verifiably privately owned, have between
25 and 250 employees, and are free of shareholders considered politically
proposals from PFIs for eligible SMEs were received shortly after the
announcement of the CRP and were promptly processed by IFE. First disbursements
were made in October 2020 and have been continuously pursued. The CRP has a
total budget volume of 65 million euros. Of this amount, around EUR 54 million
were disbursed to PFIs by April 2022, of which around EUR 34 million were allocated to eligible
SMEs; further EUR 12 million were firmly committed. To date, the CRP has
contributed to mitigate the immediate impact of the Covid-19 pandemic in
partner countries by supporting 1,588 eligible SMEs with a total of 92,047
employees. According to preliminary forecasts, by the end of the project in
September 2022, IFE will have supported a total of over 2,000 companies, thus
contributing to the preservation of more than 111,000 jobs.
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 workers and skilled labour, rising purchasing power, new markets and integration in global value chains.
With annual growth rates of seven per cent and higher, countries like Ethiopia, Ghana, Senegal and Côte d’Ivoire were are among the world’s fastest growing economies before the severe economic disruptions caused by the Corona pandemic. Many African countries have good prospects to resume their previous trajectories once the effects of the pandemic have been overcome. However it is not yet certain by when growth and employment will be restored to pre-Corona levels. At the same time, however, Africa needs about 20 million jobs per year in order to provide its young population with prospects for the future. With its Special Initiative on Training and Job Creation, the Federal Ministry for Economic Cooperation and Development (BMZ) has set itself the goal of supporting German, European and African businesses and investors engaging in Africa. The initiative aims to create good jobs and training places and to improve working conditions - as a contribution towards implementing the Marshall Plan with Africa and the G20 Compacts with Africa.
Within the scope of this Special Initiative, the Facility Investing for Employment of KfW Development Bank will provide funding for companies, non-profit organisations and public partners to overcome obstacles to investments. IFE contributes co-financing grants for employment-enhancing investments, accompanying advisory services and the set-up of investments, such as environmental and social impact assessments. This will remove barriers to creating additional and better jobs in the private sector. Funding is made available by means of competitive Call for Proposals on the basis of transparent funding criteria.
The Facility will use a lean and transparent competitive application method 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 centers, or the improvement of the local supply industry. These activities are now being complemented by IFE’s Corona Response Programme.
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 are faced with challenges which can be partly or fully addressed through financial support.
Financial support will be provided to selected projects according to the following principles:
In addition to the financial contribution, IFE will also be able to support selected grantees on a technical level, e.g. through consultancy or other services which may be needed to ensure a successful preparation and/or operational implementation of the project. The expenditures for such selective technical support services can be funded in addition to the agreed financing contribution.
The Facility has designed a lean and competitive project application process to carry out its Call for Proposals in an agile and demand-driven manner. The competitive selection mechanism applied serves to achieve an optimal allocation of limited available funding to projects showing the highest plausibility of success and expected return in terms of the number and quality of new jobs created.
The process is broadly similar to that of a “Challenge Fund”. We are looking for projects that are at an advanced stage of conceptualization and planning – which means they must be ready for a start of 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.
A Call for Proposals will involve two application stages:
Stage 1: Concept Notes
This stage is open for all applicants (or consortia of applicants) with an investment project in the partner country which will contribute to one of IFE’s Key Performance Indicators (KPIs), irrespective of their economic sector. During this stage, applicants submit a concept note containing key information on the project and themselves using an online application system. The system will aid the applicant in understanding each field of the concept note form, identifying if the proposed project meets the Facility’s eligibility requirements, and outlining the project idea. The evaluation of this stage concludes with a shortlist of the most promising applications being drawn up.
Stage 2: Project Proposals
In the second stage, shortlisted applicants will be invited to submit a full project proposals including detailed financial and implementation plans to supplement the conceptual information sent in the first stage. Applicants must demonstrate that the proposed projects are not only theoretically convincing, but also feasible to implement with the applicant’s managerial and operational resources. After an in-depth due diligence and further technical review, the final selection of projects will be taken on the basis of the quantitative and qualitative selection criteria which are described in the applicant guidelines for the respective Call for Proposals.
Successful applicants will be offered a financing agreement which may be subject to certain conditions – for example, obtaining a permit or license for a proposed investment. In certain cases, the Facility may be able to provide technical support to selected applicants to aid the preparation of a complete project – for example, by making a technical expert available to conduct an environmental impact assessment required by the Facility.
By Key Performance Indicators (KPIs) we mean the quantitative contributions that the selected project will make towards the targets of the Special Initiative for Training and Job Creation of the Government of the Federal Republic of Germany. Through its financial support, IFE focuses on promoting the following three KPIs in particular:
Through its Corona Response Programme, IFE also promotes the new Key Performance Indicators:
Further details regarding the definitions of these KPIs will be provided in the applicant guidelines for the respective Call for Proposals.
For questions regarding a Call for Proposals, please visit our FAQ-Section.
In case you cannot find the information you need, please contact one of our specific CfP-email addresses:
Please use only the following email address for all questions regarding the Call for Proposals that is running in Côte d'Ivoire, Egypt, Ethiopia, Ghana, Rwanda, Senegal,
and Tunisia in November 2022: email@example.com
Côte d’Ivoire: firstname.lastname@example.orgEgypt: email@example.comGhana: firstname.lastname@example.orgMorocco: email@example.comRwanda: firstname.lastname@example.orgSenegal: email@example.comTunisia: firstname.lastname@example.org
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Investitionen für Beschäftigung (Investing for Employment) GmbHEulenkrugstraße 55-5722359 HamburgGermany
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Phone: +49 30 / 18 535-28 70 oder -24 51
Fax: +49 30 / 18 535-25 95
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