The German government has announced an investment fund of about €1 billion in African startups and SMEs for the G20 Compact for Africa Initiative. The plans were announced via a tweet from German Ambassador to Ghana, Christoph Retzlaff.
The German Government starts a 1 Billion EURO Africa fund today. Supporting African startups and SMEs as well as German and European companies. #delivering on G20 Compact with Africa. pic.twitter.com/iM0krfZ4ET
— Christoph Retzlaff (@GermanAmbGhana) June 4, 2019
The fund was initiated in an investment forum in Berlin by Chancellor Angela Merkel in October 2018, with the aim to grow small and medium-sized companies in Africa. They plan to distribute loans and equity finance to European and German SMEs who plan to invest in Africa. This is a means to incite more private sector participation in the G20 Compact for Africa Initiative. The G20 Compact members include; Benin, Ethiopia, Guinea, Ghana, Morocco, Togo, Tunisia, Côte d’Ivoire, Egypt, Rwanda, and Senegal.
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Chancellor Merkel considers the fund as a major development policy for Africa. She believes the fund will help boost opportunities for growth in Africa. Ambassador Retzlaff also revealed that the fund will support startups, SMEs and German companies that are based in Africa.
However, the actual date for the disbursement and the industries that would benefit from the fund has not been announced. We look forward to the release of the fund and will definitely keep you in the loop.
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