More than financing
For corporate success and development
Employment and income are fundamental in giving people new prospects and overcoming poverty. Entrepreneurial initiative is the most important driver in achieving this aim, as most jobs are created in the private sector. However, many companies in developing countries lack the long-term funds necessary for expanding their business and thus ensuring its lasting success.
This is where DEG comes in. For more than 50 years, we have funded, advised and supported private enterprises active in developing countries and emerging economies. Our services are also sought after by companies in need of advice and professionalisation in areas such as corporate governance, environmental and social management and resource efficiency. Our customers benefit from our market expertise, our 14 offices worldwide and our international network.
DEG further expanded its business with EUR 1.6 billion in 2016, achieving the highest level of new commitments to date. We committed to 94 financings for investment projects in 2016.
New: German Desk in Peru offers network and consulting
Peru is one of Latin America’s emerging economies and is thus of increasing interest to German SMEs as well. This South American country has recorded average annual growth of over 6% for the last ten years. In order to help companies taking the first step into an unfamiliar market and offer them practical solutions locally, DEG partnered with the German-Peruvian Chamber of Commerce and Industry and Banco Financiero to set up a German Desk. This German Desk has offered one-stop banking services and financing opportunities for German companies and their local trading partners since February 2017. Companies can make use of the three-party network directly in Peru via the German Desk and obtain information on financing solutions that suit their needs. The network of partner banks is intended to help tap neighbouring markets as well. DEG also contributes in this way to preparing direct subsequent investments by German SMEs. Two more German Desks based on the Peruvian model are to be set up in Africa and Asia in 2017. The Association of German Chambers of Commerce and Industry (DIHK) and the German Chambers of Commerce Abroad are closely involved as project partners.
International collaboration enables larger financings
As a development financier, we rely on international networks for sharing knowledge and expertise and efficiently combining funding and consulting. We also cooperate very closely with the members of the European Development Finance Institutions (EDFI), an association of development finance providers for the private sector which DEG helped to set up. This cooperation enables DEG to increase its presence on the markets, offer its customers more financing and share risks.
DEG and twelve other EDFI members have been promoting private investments in the African, Caribbean and Pacific Group of States (ACP) along with European Financing Partners (EFP) – the European Investment Bank's (EIB) co-financing instrument – since 2003. Eleven EDFI members, the EIB and Agence Française de Développement (AFD) are partners in the Interact Climate Change Facility (ICCF) to finance private-sector projects with a positive impact on the climate.
DEG also regularly cooperates with multilateral development banks, in particular the International Finance Cooperation (IFC) and the European Bank for Reconstruction and Development (EBRD), as well as regional financing institutions.
The information contained in this online Annual Report 2016 is based on KfW’s Financial Report 2016, which you can download Should this online Annual Report 2016, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2016 takes priority.