Assessing the impact – development quality reaffirmed

DEG uses the newly created Development Effectiveness Rating (DERa) system to rate the effectiveness of its projects in terms of promoting local development and contributing to the global sustainability agenda – the Sustainable Development Goals (SDG). The DERa has been used to rate the entire portfolio and all new projects since 2017. The development contributions of each client are rated according to five effectiveness categories based on the SDGs: good and fair employment, local income, development of markets and sectors, environmentally sound management, benefits for local communities.

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The DEG portfolio amounted to EUR 8.3 billion at the end of 2017 with total volume spread over 688 projects in 83 countries. Key results from the complete portfolio assessment using the DERa are:

Prior to DEG investment in each new project, the DERa is used to record a baseline and make a forecast of what development impacts the investment can be expected to have for a five-year period. The 111 new DEG investments in 2017 are expected to secure around 400,000 jobs, of which 127,000 will be newly created. The implementation of international environmental and social standards and targeted promotional programmes, including in environmental protection and training, are also expected to increase the investments' developmental effectiveness.

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The information contained in this online Annual Report 2017 is based on KfW’s Financial Report 2017, which you can download here. Should this online Annual Report 2017, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2017 takes priority.