Development Policy Mandate
Our intention is to promote economic development and raise people's living standards in our partner countries. We do this by supporting promising entrepreneurial initiative.
Only successful and long-term viable private enterprises generate economic growth. They create jobs and income, contribute to improving the countries' foreign exchange balance by producing competitive products, contribute to government revenues by their tax payments and increase national value added by processing local resources. DEG's promotion of private sector development pursues the following aims:
DEG fulfils its role as a development finance institution for the private sector in two ways: it is the reliable finance partner for enterprises that undertake investments and at the same time it focuses particular attention on these investments producing positive effects in the developing countries. The aim is to contribute to lasting economic growth in developing and emerging-market countries and improve the living conditions of the local population. DEG thus contributes to the Millennium Development Goals, which are a joint commitment of industrial and developing countries to tackle poverty in a sustainable manner.
DEG's promotion of private sector development pursues the following aims:
- We provide finance for direct investments as the least volatile segment of capital flows into partner countries.
- We provide long-term loan finance to help safeguard cofinanced investment projects against crises.
- We help diversify capital flows by supporting pioneer investors in new countries and regions.
- And, as part of financial sector development, we strengthen local capital markets so they can provide localized finance for investment projects, in particular for small and medium enterprises.
In addition, we also mobilize other partners for and additional capital for investment projects. This way, we also help maximize growth effects with low capital input.
Further Information
Development Indicators for Private Equity Funds (PDF, 168 KB)
