German government launches €1bn Africa fund

German ambassador to Ghana Christoph Retzlaff earlier today announced that the German government had launched a €1-billion Africa fund.

Retzlaff (pictured above, left with former Ghanaian president John Dramani Mahama) said in a tweet earlier today that the fund will support African startups and small businesses, as well as German and European companies.

It’s not yet clear when the fund will make its first investments or which startup verticals it will target.

Ventureburn sought comment from the German embassy in Ghana on this and other details on the fund but had not received a comment at the time of publication.

Last year German Chancellor Angela Merkel pledged a €1-billion development fund for investments in Africa

The fund is part of the G20 Compact With Africa initiative which was launched under Germany’s G20 presidency in 2017 to promote investment in Africa.

At least 12 African states form part of the initiative. They are Benin, Togo, Ghana, Ivory Coast, Burkina Faso, Guinea, Senegal, Morocco, Tunisia, Egypt, Ethiopia and Rwanda.

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 fulfills a pledge by German Chancellor Angela Merkel in October last year at the G20 Compact with Africa summit that she would set up a €1-billion development fund for investments in Africa (see this story).

Featured image, left to right: German ambassador to Ghana Christoph Retzlaff with former Ghanaian president John Dramani Mahama (Christoph Retzlaff via Twitter)