The Germany Fund – new impetus for private-sector investment

With the Germany Fund, the German government and KfW are creating a framework that makes it easier for private and municipal companies to invest in Germany on a large scale. The federal government is providing public funds and guarantees amounting to around €30 billion for this purpose. This is intended to trigger investments of around €130 billion – as an investment offensive alongside the special government fund.

Coordination and target groups

The Germany Fund is centrally coordinated by the Federal Ministry of Finance and the Federal Ministry for Economic Affairs and Energy. KfW is responsible for implementation and is the point of contact for national and international investor advice.

The main target groups of the Germany Fund are industry, energy supply companies, small and medium-sized enterprises, start-ups, and scale-ups.

Instruments of the Germany Fund

The Germany Fund will be established in stages. Its first instruments are

• the hedging instrument for transformation industries
• the loan program to promote geothermal energy projects
• a new financing instrument for start-ups and scale-ups.

Further instruments are to be developed gradually. The initial focus will be on modernizing energy infrastructure, new private credit funds for start-ups, and growth and innovation capital, which will be used to istrengthen venture financing in Germany, and address financing gaps for SMEs.

Fund investments or direct investments are to be used to specifically strengthen venture financing for innovative start-ups and scale-ups in the security and defense industry and thus technological defense capabilities. Finally, an instrument will be established in the area of securitization to deepen access to capital markets and improve financing conditions for the German economy.

Further information

The German version of this article links to additional German resources.