Polish development bank eyes Africa

Polish development bank (BGK) may allocate up to USD 1.1 billion to finance national exports and investments in Africa. The bank will provide Polish entrepreneurs with, among other things, loans and guarantees up to that amount. BGK may also grant African governments bank to government loans. BGK announced the news at the “Four Sides of Africa” conference held in Warsaw on October the 29th.

Polish development bank (BGK) has been financing Polish exports and investments for more than fifteen years, offering support to both large enterprises and the SME sector. Under its strategy for 2030, the bank plans to allocate PLN 7 billion for this purpose. More than half of these funds – USD 1.1 billion (PLN 4 billion) – will go toward supporting entrepreneurs in African markets. BGK shared this information during the “Four Sides of Africa” conference, held in Warsaw on October the 29th. Previously, the Polish development bank had PLN 2.7 billion less available for this purpose. The conference was attended by: Angola, Tanzania, the Republic of South Africa, Morocco, Côte d’Ivoire, Rwanda, and Kenya ambassadors and diplomats to Poland.

Untapped potential

Since 2009, BGK has participated in 136 export transactions with a total value of USD 236 million. Most of the projects involved the exports of Polish products to Egypt, Kenya, and Algeria. BGK has participated in sovereign finance transactions in Africa as well - directly or joins international consortia. A condition for the bank’s involvement is the participation of Polish entrepreneurs — contractors, subcontractors, service providers, and exporters — in the execution of the investment project carried by an African government. Recently, the Polish development bank granted such a loan to one of the countries in East Africa. It was the third — and so far the largest — BGK financing in which the borrower was directly the government of an African country. Previously, BGK granted sovereign finance to the governments of Rwanda (2023) and Angola (2024). The total value of BGK’s sovereign finance loans exceeds USD 145 million.

BGK is one of the EU’s development banks that has been eyeing Africa very seriously for a while. We have already participated in over a hundred transactions there. We listen to entrepreneurs and see the untapped potential of Africa, which is why we have decided to increase the pool of funds dedicated to financing Polish business and key government investment projects there”Prof. Marta Postuła, First Vice President of the Management Board, BGK

The new financing limit for Polish exporters and investors can be used to carry out further projects. Arkadiusz Zabłoński, Director of the Foreign Expansion and Trade Finance Department at BGK, points out which areas these might involve.

Polish entrepreneurs can take part in major infrastructure projects carried out by African governments and local authorities. Such as road, rail, and renewable energy investments, as well as construction projects such as the development of medical and educational infrastructure. Africa also needs agricultural machinery, modern irrigation systems, and pharmaceuticals, which Poland may provide it with”Arkadiusz Zabłoński, Director of the Foreign Expansion and Trade Finance Department, BGK

BGK supports Polish business in Africa through the government’s Export Support Financing Program, implemented in cooperation with Poland’s Export Credit Insurance Corporation (KUKE).

Our involvement in African countries amounts to USD 2.75 billion (PLN 10 billion) and is growing in line with the objectives of KUKE’s development strategy. When assessing the potential of these markets—particularly in terms of the demand and investment plans for expanding infrastructure—we see an opportunity for a two- to threefold increase in the value of our portfolio over the next few years. According to IMF forecasts, Africa has the largest number of economies expected to grow by at least 6 percent in 2026. In addition, the continent is experiencing increasing political and social stabilization, as well as institutional reforms in many countries, which enhance the long-term security of investments. We hope to see further growth in the volume of joint transactions with BGK that finance the expansion of Polish businesses in Africa. We also count on greater involvement from domestic commercial banks in such projects”Janusz Władyczak, President of KUKE

One of the BGK's partners in Africa is also the Polish Chamber of Commerce (KIG). The bank participates in KIG trade missions for Polish companies interested in selected African markets.

Presence in African markets is still a major challenge for many companies, one that requires institutional support. As the Polish Chamber of Commerce, we not only maintain close relations with African chambers of commerce, but our business missions also regularly visit the most promising markets, giving Polish companies access to both potential partners and representatives of local administrations. For any company considering expansion into Africa, events like today’s conference should be the first step to get started”
Marek Kłoczko, President of the Polish Chamber of Commerce

On October 29th, the conference “Four Sides of Africa” was held in Poland, bringing together over 300 participants — entrepreneurs, trade and investment finance experts, representatives of Polish development institutions, think tanks, NGOs, and diplomats from African countries. The aim of the conference was to educate entrepreneurs about export and investment opportunities in countries such as Angola, Tanzania, the Republic of South Africa, Morocco, Côte d’Ivoire, Rwanda, and Kenya. The representatives of numerous African countries presented to Polish businesses the economic opportunities, as well as the import and investment needs of their respective countries.