KfW launches Africa CIRR export financing programme
News from 2020-01-10 / Group, KfW IPEX-Bank
- Designed to support German exports to Africa and to promote the economy in the buyer countries
- All credit institutions eligible to apply for buyer credit cover from the Federal Republic of Germany (so-called Hermes cover) are eligible for the Africa CIRR
- KfW is representing the Federal Republic of Germany as mandatary and has assigned KfW IPEX-Bank to administer the programme
KfW, on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi), has launched the Africa CIRR export financing programme, which aims to strengthen economic cooperation with Africa.
In concrete terms, Africa CIRR supports loans to finance large-volume German exports in African buyer countries. Under the programme, the eligible banking group can grant loans to buyers of German export goods or to banks in the African buyer country at the minimum interest rate CIRR (Commercial Interest Reference Rate) set by the OECD if it is backed by buyer credit cover of the Federal Republic. The loan amount is typically more than EUR 85 million. For smaller loan amounts, the proven ERP export financing programme of the Federal Republic is still available.
KfW provides refinancing under the programme for the eligible credit institutions if the relevant programme criteria are met. However, KfW also generally excludes certain projects from financing or specifies terms and conditions that must be met.
The Africa CIRR is a fixed-interest programme for which the Federal Republic, on the basis of a resolution by the German Bundestag, provides budget funds to support financing for large-volume export transactions.
Under the programme, KfW – acting as mandatary for the Federal Republic of Germany – has assigned KfW IPEX-Bank to administer the programme.