Mission and History

KfW and the German government (BMZ) established the ALCB Fund to promote corporate local currency bond markets as a viable source of funding in Africa. The Fund focuses on three core areas of impact:

• Acting as an anchor investor and provider of technical assistance to financial service providers (including banks, MFIs, mortgage providers, leasing companies and SME lenders) and selected companies in renewable energy, housing and agriculture;
• Improve the sustainability and diversity of funding sources for target issuers to reduce risk at the level of the individual financial institution or company, while reducing systemic risk across the financial sector; and
• Facilitate sustainable borrowing, long-term investment and financial-sector sustainability, the Fund ensures greater economic opportunity for its target beneficiaries, specifically low income households and MSMEs.

The mission of the ALCB Fund follows the G20 Action Plan to Support the Development of Local Currency Bond Markets (LCBMs), adopted by the Group under the French Presidency in 2011.

The ALCB Fund was incorporated in December 2012. Since May 2015, it has been managed by LHGP Asset Management