KfW and DEG present joint Annual Report

KfW business area Entwicklungsbank and DEG support fragile states in their reconstruction and development. They now presented their joint Annual Report entitled "Development in fragile states: Overcoming crises, creating prospects".

The Annual Report 2011 illustrates the particular challenges that DEG and KfW are facing in their work in so-called "fragile" states such as Afghanistan, Iraq, Pakistan, the Palestinian Territories or Liberia. On the one hand, measures must be taken fast so that people can see signs of progress. On the other hand, a long-term development of the state institutions, of a functioning private sector and of infrastructure must be initiated. Development cooperation activities help to stabilise fragile states and, in this way, to improve global security.

For example, in Afghanistan schools, bridges and markets were built. In the Palestinian Territories KfW supported a fund for the development of municipal infrastructure for schools, roads and parks and the countries in the Horn of Africa received some EUR 81.5 million in food aid. In Afghanistan DEG has made available a loan guarantee fund to support small and medium-sized enterprises that otherwise have no access to loans. In Iraq it has supported the mobile telecommunications company Zain with a long-term loan of USD 35 million to set up the mobile telephone network.

On the whole, KfW and DEG are looking back at a very successful year. In 2011, they once more reached a record level with their promotional activities, increasing their commitments to around 5,800 million euros. KfW and DEG are committed to worldwide poverty reduction, peacekeeping, fair realisation of globalisation and protection of environment and climate.