Press Release from 2023-06-23 / DEG

Impact further increased: DEG presents its Development Report for 2022

Even with the world facing multiple crises, the investments of KfW subsidiary DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, proved successful both financially and in terms of their development impact. Also in 2022, DEG’s customers contributed to securing and enhancing development effects through their entrepreneurial activities. Even greater impacts were achieved than in the previous year.

DEG’s investments with development impact even in times of crisis

The Development Report for 2022, which has now been presented, shows the impact of DEG’s commitment in detail. Last year, for example, the companies co-financed achieved even better results in the area of environmental stewardship. As well as complying with international environmental standards, this particularly includes introducing resource and energy efficiency checks in order to make production processes more sustainable. The number of people employed by companies in developing countries has also risen and now stands at around three million. Furthermore, local income of around EUR 209 billion was generated in 2022 by those companies.

Expansion of transformation advice for companies in developing countries

“Here at DEG we are focusing even more on high-impact and climate-friendly investments. The current analysis shows that our existing customers are proving resilient despite considerable challenges. They remain commercially successful, and their development impacts have been secured and even improved,” comments DEG CEO Roland Siller. “This shows that our customers are actively tackling the transformation process and developing adaptation strategies, and we are providing them with targeted support, for example through our Business Support Services (BSS).”

The development impacts of their investments are a key control instrument for DEG. They are measured using the Development Effectiveness Rating (DERa). Each year, the DERa uses qualitative and quantitative indicators to measure development outcomes for every DEG customer.

DEG also records and analyses its customers’ contributions to the global Sustainable Development Goals (SDGs). The companies’ contributions to SDG 8 (decent work and economic growth) are especially high at 93%. This means fair jobs for local people and growing local income.

Three million jobs, local income of EUR 209 billion, green energy for 33 million people

Moreover, energy suppliers co-financed by DEG produce around 35 TWh of electricity from renewable sources (SDG 7) every year and currently supply about 33 million people, thereby preventing 24 million tonnes of CO2 emissions.

“Advising companies on their transformation pathway and at the same time driving forward our own transformation is the strategic objective for the coming years. The goal is for our portfolio to be climate neutral by 2040. Many entrepreneurs in developing markets are looking at their environmental and climate impacts and are working to further improve them, as this year’s Development Report impressively demonstrates,” says Roland Siller.