New case studies: The economic success and sustainability of DEG's customers

What are the hallmarks of sustainable corporate success? And what role does DEG play in it? Three new case studies recently published by DEG take a look at these questions. The internationally recognised consultancy firm, Steward Redqueen, analysed DEG's commitments in Brazil, Namibia and Vietnam.

One of them was Ohorongo Cement Ltd., a subsidiary of the German company, Schwenk Zement KG, Nambia's first and currently only cement manufacturer. The study shows how Ohorongo became established as a major producer and reliable supplier of high-quality cement for Namibia in the space of four years. Ohorongo focuses particularly on the potential offered by local and national workers and resources, and in doing so, acts as a driver for development in Namibia.

In 2009 DEG structured a long-term financing transaction for Ohorongo and also provided a long-term loan amounting to EUR 31.5 million. More recently, DEG played a key role in helping to convert this project loan into a corporate loan. In this way, DEG will remain a long-term partner of Ohorongo. Moreover, through its commitment DEG is creating added value by supporting Ohorongo in establishing networks with Namibian financial institutions and building and furnishing a simulation and training centre.

The other two case studies examine the efforts to professionalise a Brazilian fertiliser producer and the investment of a Chinese textile manufacturer which is expanding its operations in Vietnam.