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Press Release from 2022-09-13 / DEG

DEG: successfully promoting private enterprises in developing countries for 60 years

Operating from Cologne since 14 September 1962

On 14 September 2022, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – celebrates its 60th birthday. It was founded by the German government to support the expansion of the private sector in developing countries with investment capital. Today, around 650 employees in Cologne and in 18 other locations around the world are committed to helping private companies achieve sustainable success by offering long-term financing and advisory services.

A focused strategy to deliver even more positive development and climate impacts

“Finding solutions for companies in developing markets under often rapidly changing framework conditions has been DEG’s mission and aspiration since the beginning,” says CEO of the DEG Management Board Roland Siller, commenting on the anniversary. “Global challenges such as climate change, megatrends such as digitalisation and higher sustainability standards demand that we tackle transformation in a resolute manner. DEG has developed a strategy to actively support future-oriented companies in their transformation processes. With this in view, we will focus even more strongly on high-impact and climate-friendly investments.”

DEG has been a subsidiary of KfW since 2001. Its current portfolio amounts to EUR 9.2 billion, spread over more than 700 investments in around 80 countries, mainly in Africa, Asia and Latin America.

The development impacts of the companies it co-finances are an important control instrument for DEG. Since 2017, these impacts have been measured using the DERa (Development Effectiveness Rating), which is based on the UN’s Sustainable Development Goals (SDGs).

An analysis of the 2021 portfolio shows, among other things, that the companies co-financed by DEG employ 2.8 million people and generated local income totalling EUR 147 billion in 2021 alone.

Latest commitment: local-currency loan worth the equivalent of EUR 23 million for SME financing by Access Bank in South Africa

In 2022, for example, DEG has provided new financing for energy-efficient recycling of PET bottles in India and sustainable pineapple cultivation in Costa Rica. Just now it is providing Access Bank South Africa, a subsidiary of the Access Bank Group, with a long-term local-currency loan amounting to ZAR 400 million (approx. EUR 23 million). This will allow the bank to continue expanding its business with SME customers and create around 700 new jobs in the coming years. DEG is also advising Access Bank, through its Business Support Services (BSS), on setting up an environmental and social risk management system.

“We have enjoyed successful cooperation with Access Bank Group in West Africa for several years now, and we are delighted to support its further development. Customer-oriented, entrepreneurial thinking and action – that is what connects our two businesses,” said Roland Siller at the contract signing on 12 September.

Roosevelt Ogbonna, CEO Access Bank Group, added: "Access Bank PLC and DEG share a common objective to project Africa to the world by accelerating economic opportunities on the continent. The executed ZAR currency denominated SME finance facility accessed by our South African subsidiary ticks all the boxes: it is great for our physical footprint, and it helps accelerate what we are doing as a Bank. We look forward to our continued cooperation with DEG and thank DEG for the support."

Learn more

A new edition of the DEG e-paper has been published to mark DEG’s anniversary. It offers a range of insights into the tasks and objectives of the development finance institution and how it works with businesses.

Contact

DEG Press Office

Barbara Schrahe-Timera

+49 221 4986 1843