DEG – More than financing
Private companies that invest in developing countries and emerging economies often face particular challenges in their efforts to seize opportunities and access new markets. Providing reliable financing and advice to such companies to enable them to have lasting success is the mandate of DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH.
DEG continued its successful development in 2017
- 1.6 billion euros made available for private investments in developing countries and emerging economies
- Substantial increase in financing for German enterprises
- Entrepreneurial investments totalling around EUR 11 billion made possible
DEG agreed 111 financings in 44 countries in financial year 2017. Placing a stronger focus on Africa as a continent of opportunities is one of DEG's special priorities. It thus invests in innovative business models and companies there. In 2017, DEG was involved in the future market mobile banking, providing EUR 4 million in private equity to Ethiopian mobile money service provider M-BIRR. This first fintech financing for DEG was also aimed at making a contribution to financial inclusion in Ethiopia. DEG also invested in North Africa with a EUR 7 million participation in Moroccan logistics company SJL, which offers integrated transport and logistics services for trade between Morocco and the EU via the Morocco-EU corridor.
New commitments by region (EUR in millions)
German companies are a key target client group of DEG. DEG financing and promotional programmes reached 130 German businesses in 2017. It provided those companies with EUR 436 million for their projects in developing countries and emerging economies, and a further EUR 27 million via promotional programmes. The German Desks – Financial Support and Solutions are a new service for German companies.
They team with local partner banks to offer financing solutions to German and local SMEs. Such solutions include credit lines or investment finance for local companies that wish to acquire German machinery or services. There are currently German Desks in Lagos (Nigeria), Nairobi (Kenya), Jakarta (Indonesia) and Lima (Peru).
DEG clients come from developing countries and emerging economies, Germany and other industrialised countries. DEG engages in dialogue with them to develop solutions that encompass more than capital. DEG continuously advises and supports its clients and is also a reliable partner in times of difficulty.
In addition to financing for companies and project financing for private infrastructure projects, DEG makes long-term funds available to banks and funds that provide capital to local companies. This enables particularly small and medium-sized enterprises in developing countries to realise their business ideas and to invest.
DEG again generated a very healthy result in financial year 2017 under what were at times challenging conditions. Profit for the year after risk provisioning and before taxes amounted to around EUR 104 million. Net retained earnings for 2017 were around EUR 94 million.
Read more about DEG's tasks
Read more on our focal areas in 2017
The information contained in this online Annual Report 2017 is based on KfW’s Financial Report 2017, which you can download 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.