Domestic promotion in 2020
We promote Germany
We finance investments in the future by people in Germany; we finance start-ups and SMEs so that the German economy will remain strong. To achieve this, we finance projects that advance our environment, our municipal and social infrastructures, structural change and the common good.
EUR 106.4 billion was committed to promoting businesses, private clients and municipalities in Germany in 2020 (2019: EUR 43.4 billion), also reaching a new record of one million commitments. This result has been significantly affected by the coronavirus special measures which KfW has been implementing on behalf of the German Federal Government since the spring of 2020. New aid programmes for businesses were launched at short notice, and the existing KfW Student Loan was modified.
Quick and effective support; COVID-19 was also the main issue for domestic promotion in reporting year 2020
Policymakers took quick and resolute action when the pandemic broke out. KfW offered its promotional expertise from the outset and has developed and rolled out aid programmes for small and medium-sized enterprises in particular.
The first KfW Special Programme was created just one month after the initial deliberations. The programmes were continuously developed after that and the offering expanded to include additional target groups. The initial conclusion: The intended effects were achieved, with promotion under the coronavirus aid programmes amounting to a record EUR 46 billion. The programmes also met customer requirements, as measured by the high satisfaction ratings for the application process and the terms.
Promotional issues of relevance for the future
In addition to coronavirus aid, new commitments in 2020 were focused on energy efficiency, renewable energy and digitalisation.
- Improved promotional terms for the Energy-efficient Construction and Refurbishment programmes resulted in a significant increase in commitments of 140% to EUR 26.8 billion (2019: EUR 11.2 billion).
- The “Charging stations for electric cars on residential buildings” grant was successfully launched on 24 November 2020 to high demand; around 137,000 commitments had been made by the end of the year.
- The two new “Digital Infrastructure” programmes, aimed at rapidly expanding broadband in Germany, were launched in April and the first commitments made.
- Despite an eight-month coronavirus freeze, three transactions with a total financing volume of EUR 119 million (KfW's share: EUR 41.3 million) were concluded in the Venture Tech Growth Fund (VTGF) in 2020. The KfW ticket size ranged in these cases from EUR 3.5 to 25 million. Promotion is granted to domestic innovative growth companies in which a professional venture capitalist is involved.
- KfW's programmes actively promoted a variety of objectives in 2020 as well. (in German only)
We think a step ahead when it comes to promotion: Sales and infocenter handle record demand
The information contained in this online Annual Report 2020 is based on KfW’s Financial Report 2020, which you can download Should this online Annual Report 2020, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2020 takes priority.