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AfricaConnect – We finance progress

AfricaConnect supports European companies invest in Africa by providing loans at attractive conditions. By offering individual financing with a minimum of red tape, it actively promotes and facilitates investments on the African continent. Our particular focus is on impact and transformation and on the value added by investments from a development policy perspective.

At a glance: AfricaConnect

Attractive investment financing

  • Loans for almost all African markets in EUR, USD and local currencies
  • Terms ranging between 3 and 7 years, with optional grace period
  • Loans from EUR 750,000 to EUR 5 million (generally unsecured)
  • Attractive conditions with reduced interest rates for projects with an especially transformative impact
  • Funds are disbursed directly to the subsidiary in Africa, without involving your principal bank
  • Risk-adequate equity contribution of 20% to 50%; equity that has already been provided can be factored in
  • Everything from a single source: straightforward access to additional funding for training
  • Valuable assistance in implementing international environmental and social standards
  • Access to DEG’s network and our wide-ranging expertise in developing and emerging-market countries based on over 60 years of experience

We finance the following projects

  • Subsidiaries of established European companies that are already active on the African market or are planning to enter it
  • African companies that have solid long-term business ties with a European company

We can provide financing ifInvestment financing is not possible if
  • The company is sustainably profitable and can service the loan through its operating business
  • The investment adds value from a development policy perspective, e.g. by creating jobs
  • Companies do not (yet) have a profitable business model or the required equity
  • Companies want to restructure or repay existing loans or to use the money to distribute profits or pay dividends
  • Projects have no proof of concept
  • The Greenfield projects’ sponsor (European parent company) is not an experienced, financially solid company (e.g. is a start-up)

AfricaConnect success stories

More value creation for organic nuts and fruit in Kenya

Limbua is a high-impact agricultural business in Kenya that nurtures the local value chain. Financing from AfricaConnect enabled it to expand its production.

Learn more

Sustainable packaging production for West Africa

German paper and packaging solutions producer Klingele was supported by AfricaConnect in setting up its manufacturing facility in Senegal.

Learn more

To begin with, we need the following information

  • Basic information about the company (business model; investment description, including experience in the relevant sector and in developing and emerging-market countries in general; management background)
  • Audited financial statements of the European group and its African subsidiary for the previous two years
  • A business plan that shows the economically sustainable development for the following years; this includes the forecast income statement, balance sheet and cash flow planning over the investment horizon
  • Organisational chart showing the structure of the company and the group
  • A description of the development policy effects of the investment, especially the number of new jobs planned

More Impact & Transformation – We reward particularly impactful projects with an interest rate reduction!

Besides creating jobs with good working conditions, AfricaConnect focuses on four further socio-ecological areas. Companies that go beyond country and sector standards in these areas and successfully implement jointly agreed objectives may receive even more favourable interest rates.

Here, the focus is on the following areas:

All information on our funding programme and the individual impact areas can be found here: Our AfricaConnect Flyer

AfricaConnect is one of the programmes offered by the Federal Ministry for Economic Cooperation and Development (BMZ) to promote collaboration with actors in the private sector.

What if your project is not suitable for funding through AfricaConnect?

AfricaConnect – what we have achieved so far

Here you can find an overview of the financing commitments made as part of the AfricaConnect programme (in German only).