KfW records historic commitment volume in development cooperation

• KfW Development Bank: at 66%, focus still on financing for environmental and climate protection
• More support for fragile countries: new commitments worth EUR 1.2 billion
• Neighbouring continent of Africa still a priority
• DEG pledges EUR 1.6 billion (+46%)
• EUR 871 million for small and medium-sized enterprises

In the course of 2016, KfW significantly increased its commitments for financing and promotion, reaching a historical high for commitment volumes. Around EUR 8.8 billion in financing was provided to developing countries and emerging economies over the past year on behalf of the German Federal Government (2015: EUR 7.7 billion).

"In light of the global challenges posed by climate change and the tangible refugee crisis in Germany and in Europe, development cooperation is continuing to gain in importance. KfW has increased its financing for climate protection further, and raised its support for fragile countries. This helps refugees directly and stabilises the host communities in crisis regions and transit states. In future, KfW will continue to focus on the neighbouring continent of Africa in particular. This is where significant importance is attached to strengthening infrastructure and the associated creation of prospects through jobs," comments Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

Last year, KfW Development Bank provided around EUR 7.3 billion (2015: EUR 6.7 billion) for financing in developing countries and emerging economies. Roughly 330 financing agreements were concluded. Commitments for projects in the areas of climate and environmental protection were increased again (2016: 66%, EUR 4.8 billion, 2015: 60%; EUR 3.9 billion). EUR 1.2 billion of the new commitments were pledged to fragile countries. Some 42% of the newly committed budget funds were assigned to development projects in Sub-Saharan Africa (EUR 812 million).

KfW Development Bank reached around 26 million refugees in 2016 with almost 100 projects and a total volume of EUR 2.1 billion. The energy projects supported in the previous year amounting to EUR 2.1 billion are helping approximately 2.6 million people gain access to a modern energy supply for the first time; 47.2 million people are benefiting from newly supported projects in the fields of reproductive health and associated infrastructure. Another 2.7 million people are benefiting from education finance.

Alongside budget funds, which stem primarily from the Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank committed its own development funds amounting to EUR 5.1 billion (70%, previous year 64%). In this way, KfW helps the Federal Government to meet its international objectives and obligations for combating poverty, protecting the climate and the environment and supporting crisis regions, which is becoming increasingly important.

In the last financial year, DEG, a subsidiary of KfW, achieved the highest volume of new business in its almost 55-year history. In 2016 it committed financing of roughly EUR 1.6 billion for private-enterprise investments in developing countries and emerging economies, and therefore 46% more than in the previous year (2015: EUR 1.1 billion). Financing for small and medium-sized enterprises was once again a focus, with more than half of all new commitments (EUR 871 million) going to SMEs. DEG committed EUR 253 million, almost twice as much as it did in the previous year, for German companies. Investments in Sub-Saharan Africa accounted for one fifth of all new commitments (EUR 316 million).

"In 2016 DEG continued to expand its involvement in effective, successful and long-term entrepreneurial investments. The same applies for advisory and promotional activities. Here we purposefully support companies in improving their energy efficiency or the qualifications of local employees. This generates added value for business and development policy," explains Christiane Laibach, member of the DEG Management Board.

By means of its 2016 financing, DEG contributed to creating and securing a total of 414,000 jobs. In addition, by means of tax payments the companies co-financed by DEG in 2016 will contribute to raising public revenues in the partner countries by an estimated annual sum of EUR 280 million. DEG financing enables the annual production of roughly 1,800 GWh in green electricity, supplying over 5 million people.

More details are available at www.kfw-entwicklungsbank.de and www.deginvest.de