DEG, together with the German Federal Ministry for Economic Cooperation and Development (BMZ), initiated the Global Innovation Investment Fund (GIIF), a development promotion fund providing financing for private-sector projects with increased risks and high development impact.

GIIF is now being opened up to private institutional investors with the aim of mobilising further, urgently needed funds for private-sector investments in developing and emerging market countries. This is an attractive opportunity for investors to engage in emerging markets through an innovative fund with a budget-saving effect by bundling the private and public sectors.

During the 2026 Hamburg Sustainability Conference, an investment memorandum of understanding was signed on 29 June with globally active insurance company MSIG USA (MSIG Specialty Insurance USA Inc.) as a non-payment insurance support for a loan portfolio of USD 500 million.

“At DEG, our mandate is to finance private sector investments with strong development impact. We therefore also mobilize additional capital via our fund advisory entity DEG Impact where it matters most. Today’s signing with MSIG USA and GIIF is a clear proof of concept: our portfolio-based guarantee structures can mobilize institutional investors into emerging and developing markets. We are very happy to foster this partnership between public and private actors, unlocking a new level of impactful cooperation,” said Monika Beck, Managing Director of DEG, at the occasion of the signing.

“MSIG USA is proud to join DEG and its partners in this innovative effort to expand financing for sustainable investments in developing markets. Supporting sustainable economic growth and resilience aligns closely with our broader mission to contribute to the development of a more vibrant society and help secure a sound future for the earth. We recognize the important role private sector organizations play in helping mobilize investment where it can create meaningful, long-term impact, and we look forward to working with DEG to advance these efforts around the world” stated Dan Riordan, Head of Political Risk, Credit & Surety at MSIG USA.

“The further development of the Global Innovative Investment Fund (GIIF) to open it up to institutional investors marks a real milestone: the GIIF, developed jointly by the BMZ and DEG, is one of the first development promotion funds based in Germany. It offers an attractive investment option for investors whilst also contributing to achieving the Sustainable Development Goals. Investments by private partners which impact development complement public investments and therefore have a high leverage effect,” commented BMZ State Secretary Niels Annen.

“Mobilising private capital to finance and shape globally significant initiatives for the future is more important than ever. At KfW, we are committed to this across our entire international financing activities. I am delighted and strongly support the fact that, today at the Hamburg Sustainability Conference, we are able to take the next important step regarding the GIIF, which was developed jointly by the BMZ and KfW’s subsidiary DEG. Opening up the GIIF to institutional investors will make it possible to mobilise significantly more private capital and thus to realise more in-vestments with development impact,” added Christiane Laibach, member of the Executive Board of KfW.

GIIF was initiated in 2019 with the aim of facilitating the co-financing of private-sector projects with increased risks and high development impact. For this purpose, DEG’s own funds are combined with GIIF funds, which are provided by the BMZ via a budget-saving, revolving fund structure based in Germany. The further development of the mechanism will mobilise additional private capital. Investments may be made in developing and emerging market countries, classified according to the OECD DAC country list (excluding the People’s Republic of China). The focus is on sectors with high added value in terms of development, such as employment effects, market development and stabilisation of economic value chains.

GIIF is one of the first development promotion funds based in Germany. It offers private investors the opportunity to invest more heavily in dynamic developing and emerging market countries and thereby diversify their investment strategies. The revolving use of funds maximises resource efficiency.

Investments to be co-financed using GIIF funds are acquired, reviewed and structured in cooperation with DEG, which is also involved in ongoing project monitoring following the commitment of financing. Projects are selected according to clearly defined development policy and business investment criteria. The investments that receive financing demonstrably generate development impacts. DEG advises companies on how to further develop their business models with sustainability and efficiency in mind. This may include diversifying and strengthening supply chains or protecting global goods.

Under GIIF, financing may come in the form of not only euros or US dollars, but also local currencies. Currency hedging is performed in cooperation with local currency fund TCX, reducing exchange rate risks for clients. This is particularly relevant for local companies without access to foreign currency, for example through export earnings.

The GIIF portfolio currently comprises around EUR 207 million in the form of loans and equity, enabling co-financing for 25 investment projects by private companies in countries such as Bangladesh, Ecuador, Morocco and Tanzania. The total volume of funds committed by DEG and GIIF for this purpose currently amounts to around EUR 600 million.

For more than 60 years, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has been advising companies investing in developing and emerging countries and providing them with long-term loans, mezzanine financing and equity. Long-term capital, which is often scarce in those countries. KfW subsidiary DEG also invests in local banks and financial service providers that primarily supply financing to small and medium-sized enterprises. In addition, it advises and supports its customers in structuring their investments and transformation processes.

Furthermore, DEG mobilises additional capital from investors to enable larger-scale financing and investment in high-risk contexts. To this end, it cooperates with private and public actors such as the European Development Finance Institutions (EDFI), the International Finance Corporation of the World Bank Group, the EU via the European Fund for Sustainable Development Plus and private financial service providers.