KfW helps to rebuild the Syrian economy

• Financing agreements amounting to EUR 46.5 million for the reconstruction of markets, shopping centres, production facilities and support for small businesses.
• New prospects for internally displaced refugees and returnees
• Christiane Laibach: "Continuous commitment to development cooperation pays off."

KfW is helping to rebuild the Syrian economy. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), it has concluded two contracts with the United Nations Development Programme (UNDP) for grants amounting to EUR 46.5 million.

KfW is thereby building on the long-standing support it has been providing to UN and non-governmental organisations since the civil war started in 2011. The central starting point is the reconstruction of important markets and of production facilities to secure the supply of vital resources.

“Continuous commitment to development cooperation pays off”,

said Christiane Laibach, member of the Executive Board of KfW.

"For years, KfW has been supporting the Syrian population with regularly adapted projects. Following the change of government in Syria close to a year ago, we are starting new initiatives. They involve building economic structures to strengthen economic development and improve local people's lives. We place great importance on involving the local population and offering a future to returnees and internally displaced refugees."

The years of fighting since the start of the Syrian civil war have led the country into a situation which on an economic level has been difficult and which on a humanitarian level has been disastrous. Markets, production facilities and the transport and energy infrastructure have been largely destroyed. Gross domestic product has decreased by 64% since 2011. Around 90% of the population lives below the poverty line.

KfW is supporting the following new projects:

• The aim of the first project, which has a budget of EUR 20 million, is to revitalise key markets and trade centres, as well as rebuild production and processing facilities, such as mills, silos, slaughterhouses and spinning mills. Energy-efficient construction methods and the integration of renewable energies such as solar and photovoltaic systems play a particularly key role here. The construction measures provide a source of income and economic growth. Up to three million Syrians stand to benefit from the project.

• The second project, supported by funding of EUR 26.5 million, is entering a new phase. The German Financial Cooperation's aim with this initiative is to help internally displaced refugees, returnees and host communities safeguard their livelihoods. The measures include the restoration of basic infrastructure such as schools, vocational training centres and health care centres. There are set to be 3,300 “cash-for-work” positions, funding for 1,650 small and medium-sized enterprises and vocational training for 1,600 individuals.

Further information on financing by KfW is available here: International Financing of KfW | KfW