Sub-Saharan Africa stands to benefit from a US$1.1 billion investment boost for Polish companies wanting to expand operations internationally.
At least a quarter of that financing (US$250 million) has been earmarked for South Africa, reports Engineering News.
The financing package is part of the EU Global Gateway initiative. It follows Poland’s recent classification as a developed economy, its having reached the US$1 trillion GDP threshold.
The financing involves six state institutions: development bank Bank Gospodarstwa Krajowego (BGK); the Polish Investment and Trade Agency (PAIH); the Polish Development Fund; and export credit insurer KUKE. The parties involved will provide financing, risk underwriting and market advisory for international expansion.
‘The Polish Development Bank has more than US$1 billion for projects for the next few years dedicated to Africa – this is more than 50% of our budget. We can support Polish companies in their foreign expansion and also their partners, buyers and African governments delivering strategic national projects,’ said BGK director for international business relations Wioletta Reimer.
Through the facility, the bank will be able to extend financing to African importers buying Polish equipment, provide project finance to local-Polish joint ventures and co-finance transactions alongside African commercial lenders.
The BGK and PAIH believe Poland can draw on its own experience to help South Africa overcome its infrastructure bottlenecks, adding that Polish engineering, water management and digital governance solutions are well suited to support South Africa’s industrial corridors.
‘The time is right. Polish companies are maturing to invest and expand in countries such as South Africa. If there is a viable project backed by mutual collaboration, our credit limits are in place and ready to be deployed,’ said BGK transaction manager Błażej Mykowski.
