USD 189m for the "Aga Khan Fund for Economic Development"

The "Aga Khan Fund for Economic Development (AKFED)" promotes entrepreneurial initiative in Africa, the Middle East and South and Central Asia. The fund provides financing to companies in the finance, manufacturing and tourism sector, among others. DEG, together with the French development finance institution Proparco and the Dutch development bank FMO, has now invested in AKFED. The three European development finance institutions have signed a long-term loan agreement of USD 189m, with DEG providing USD 67m - one of the highest financing volumes in its history.

The loan will be dedicated to further expand AKFED's activities in Asia and Africa, thereby contributing to economic and social development in the long term. The financing provided by AKFED enables companies to make the necessary investments, to improve their revenues and to create employment.

AKFED has to date invested in around 90 projects of private companies in 17 countries. In recent years, the fund has mainly financed investments of companies active in the tourism and infrastructure sector that, for instance, aim at an improved offer of affordable telecommunications services.

A special focus is also given to the promotion of private-sector structures in fragile states, such as in Afghanistan. The newly created jobs contribute to reconstruction and stabilisation of the country.

DEG and AKFED have been successfully cooperating for more than 25 years. During this period, more than 50 financing projects have been jointly implemented, also in politically unstable regions and important future markets.