DEG in 2021
More than finance
Within KfW Group, DEG – Deutsche Investitions- und Entwicklungsgesellschaft – is responsible for cooperation with private companies that invest in developing countries and emerging economies. Companies involved in these countries to tap into new market opportunities are often faced with particular challenges. As a reliable partner with almost 60 years of experience, DEG offers them solutions tailored to their respective needs, comprising long-term financing, individual advice and promotional programmes.
EUR 1.5 billion for business investments in developing countries
DEG can look back on a successful financial year, which was once again challenging due to the ongoing COVID-19 pandemic. As a result of the pandemic and the varied economic development in the partner countries, DEG continued to be particularly in demand as an experienced adviser to its customers.
Growing new business
DEG committed a total of EUR 1.5 billion for investments by private companies in developing countries and emerging economies in 2021.
Focus on sustainability
DEG shows how its customers contribute to the UN’s 17 Sustainable Development Goals (SDGs), and it provides transparent information about its investments on its website.
Measurable developmental impact
2.8 million people work for DEG customers in fair employment. These companies generate local income of around EUR 147 billion.
Developing green energy
The renewable energy projects financed by DEG in 2021 produce 43 GWh of green electricity each year, saving 15.7 million tonnes of CO2 emissions.
Additional capital mobilised
In 2021, DEG mobilised around EUR 507 million for joint projects among private and institutional investors.
Offers for German companies
German companies are a key client group of DEG. In addition to loans and investments for German direct investments, this also includes financing for local companies, directly or via local banks, which acquire German equipment or components, for example.
Improving vaccine delivery
Aspen Pharmacare receives a total of around EUR 600 million to produce COVID-19 vaccines in South Africa. DEG is contributing EUR 144 million to the financing.
Transport powered by the sun
DEG is co-funding an initiative that aims to bring 3,000 solar-powered e-bikes to East Africa’s roads. A sustainable, climate-friendly approach to tackling rising traffic levels.
Efficiently expanding production
Chilean company Beneo, a subsidiary of the German company Südzucker AG, is expanding its chicory processing facilities with a loan of EUR 40 million. In addition, the production of green electricity with biomass will be expanded with the aim of achieving carbon neutrality.
The largest dairy cooperative in Costa Rica receives USD 19 million to expand production. This also secures the income of around 5,000 employees and around 1,300 medium-sized private milk producers.
Reaching small and medium-sized enterprises
DEG made USD 15 million available to Locfund Next. The fund provides small and micro-enterprises in Latin America with loans and secures their liquidity during the coronavirus pandemic.
Development impact remains high in the pandemic
DEG uses the Development Effectiveness Rating (DERa) system to rate the effectiveness of its commitments in terms of promoting local development and contributing to the global sustainability agenda – the 17 Sustainable Development Goals (SDG). For 2021, the portfolio’s DERa analysis shows that DEG customers employ a total of 2.8 million people. These companies also generated local income of over EUR 147 billion. At 78 points, the DERa score for the DEG portfolio was once again above the target value of 75 points in 2021. DEG provides information about the development effectiveness of its commitment and its contributions to global sustainability goals in an annual development report.
2021: Clearly positive result
DEG ended 2021 with a very good result. In addition to net interest income and earnings from participations, income from the partial reversal of risk provisions – greatly increased in the 2020 financial year due to the pandemic – helped DEG end the 2021 financial year with pre-tax net income for the year of EUR 216 million (HGB). This is added to DEG’s equity capital in order to reinforce its risk-bearing capacity. This forms the foundation for DEG’s business activities and its self-funded expansion.
The information contained in this online Annual Report 2021 is based on KfW’s Financial Report 2021, which you can download Should this online Annual Report 2021, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2021 takes priority.