African Local Currency Bond Fund

The EU’s Global Gateway aims to scale up sustainable finance globally and in an inclusive way. By enhancing access to capital markets such as via bond issuances and other long-term financing instruments in local currency, the African Local Currency Bond (ALCB) Guarantee promotes the development of African businesses in sectors such as affordable housing, agriculture, renewable energy, infrastructure, education and healthcare.

The ALCB’s main activity is to help local non-sovereign companies in issuing currency bonds. By guaranteeing investors lending into the ALCB Fund, the guarantee supports private funding towards long-term financing for African companies and financial institutions. This catalyst will drive down financing costs, support market transparency, address risks in currency depreciation, boost financing and foster the economic resilience through the development of capital markets in partner countries, with a special focus on least-developed countries.