THE FACILITY INVESTING FOR EMPLOYMENT (IFE)
Economic reforms and improved competitiveness have created new, dynamic growth markets in many parts of Africa. African countries increasingly offer attractive prospects for companies and investors: a young population, growing availability of workers and skilled labor, rising purchasing power, new markets and integration in global value chains. Investing for Employment (IFE), an investment facility created by KfW Development Bank (KfW) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), is as an integral part of the Special Initiative on Training and Job Creation to help meet this growing need for new long-term jobs on the continent.
This BMZ initiative was established to create long-term, full time good jobs and apprenticeships, offer quality-based training and education, and improve working conditions in related partner countries. Currently, seven partner countries have started programs: Côte d’Ivoire, Ethiopia, Ghana, Morocco, Rwanda, Senegal, and Tunisia. A partnership with Egypt is in preparation. More informationon this initiative can be retrieved on the website.
In July 2020, KfW awarded the management of the IFE Facility to GFA leading a consortium with NIRAS. The purpose of the facility is to support the creation of decent employment opportunities in Africa. The objective is to create 100,000 jobs within five years. Co-financing grants for new investment projects with a high job creation impact are offered in the above-mentioned countries.
GFA services comprise the management of the IFE Facility, preparing and executing calls for proposals for projects, and organizing non-competitive proposal processes. Moreover, GFA expert support the preparation of the projects and monitor promoted projects.
The selection of projects is based on a competitive application process. IFE looks for an optimal allocation of available funding to projects with the highest plausibility of success and expected return in terms of the number and quality of new jobs created.
IFE has launched its first call for proposals on in Tunisia and Côte d’Ivoire, seeking applications for four types of projects:
- Public infrastructure for job creation (covering up to 90% of the cost)
- Common service for job creation (up to 75% of the cost)
- Projects that foster direct job creation that offer broad impacts that do not only benefit the project owners (up to 50% of the cost)
- Projects that foster direct job creation by companies (covers up to 25% of the total cost).