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Bank Gospodarstwa KrajowegoBGK bank may allocate PLN 4 bln to finance Polish exports and investments in Africa
Poland's state development bank BGK may allocate PLN 4 billion (EUR 860 million) to finance Polish exports and investments in Africa, the bank said in a statement. BGK supports Polish business in Africa through the government's financial support for exports programme.
"BGK finances Polish exports and (...) investments, targeting large companies and SMEs. In its strategy to 2030, it assumes to earmark PLN 7 billion for this purpose, with over half, PLN 4 billion, dedicated to supporting entrepreneurs in African markets. Previously, the bank had over PLN 2.7 billion less available for this," the bank said in a statement.
Among 89 markets where Poland's state development bank supports Polish businesses, 17 are in Africa, despite this continent receiving only 1 percent of national exports.
As BGK stated, since 2009, it has participated in 136 export transactions worth over PLN 830 million (EUR 179 million), mostly involving supplies to Egypt, Kenya, and Algeria.
BGK collaborates with Polish credit insurer KUKE under the government's financial support for exports programme.
KUKE's head Janusz Wladyczak, quoted in the BGK's statement, said that KUKE’s commitment in African countries totals PLN 10 billion (EUR 2.15 billion) and is growing according to its development strategy.
Assessing market potential, especially investments in infrastructure expansion, Wladyczak sees a 2-3 times portfolio growth opportunity in coming years. According to International Monetary Fund forecasts, Africa hosts the most economies expected to grow at least 6 percent in 2026.
Political and social stabilisation and institutional reforms improve long-term investment security. KUKE hopes for increased joint transactions with BGK to finance Polish business expansion in Africa and expects greater involvement from domestic commercial banks.
KUKE also supports BGK in granting sovereign finance loans to foreign governments.
BGK participates in such a transaction directly or through entering into international consortia. Engagement requires Polish companies' involvement as contractors, subcontractors, service providers, or exporters. Total value of BGK sovereign finance loans in Africa has exceeded USD 145 million (EUR 135 million).
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