Key facts
- Implementing Partner:
KfW
- Guarantee volume:
Up to €100 million
- Sectors:
Capital markets, local businesses and sustainable finance
- Geographical focus:
Sub-Saharan Africa and Southern Mediterranean
- Types of investments:
3-15 year local currency loans to the African Local Currency Bond Fund (“ALCBF”).
Description
The EU’s Global Gateway aims to scale up sustainable finance globally and in an inclusive way. By enhancing access to bonds 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.
How can private investors get involved?
If you are an investor looking to invest in local currencies in Sub-Saharan African and Southern Mediterranean countries, we recommend getting in touch with KfW.
Contact: Michael [dot] Schuster
kfw [dot] de (Michael[dot]Schuster[at]kfw[dot]de)
About KfW
On behalf of the German Federal Government, KfW works closely with the institutions of the EU and its Member States. To this end, KfW supports the Team Europe approach and works in close cooperation with the European Commission, as well as with other multilateral or bilateral actors in European development finance.
Press release: Global Gateway Forum: Commission and KfW sign guarantee agreement to enhance local currency financing in Africa