• Framework agreement with a volume of up to USD 400 million
• New loans partially backed by guarantees
• Increased risk capacity enables more DEG commitments

Private capital is needed to ensure that investments by private companies in developing and emerging economies are successful in the long term. That is why DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and the insurance company Munich Re are expanding their cooperation. The partial coverage of loan risks by Munich Re subsidiary Great Lakes Insurance SE (GLISE) allows DEG to enable and provide more financing for private sector investments – investments that contribute to sustainable growth and create jobs and opportunities for local people. In 2025, KfW subsidiary DEG committed a total business volume of EUR 2.9 billion, of which EUR 2.4 billion came from its own funds.

The guarantee volume now agreed with Munich Re is worth up to USD 400 million and is to be phased in over three years. With these additionally mobilized private funds in the form of risk sub-participations, long-term DEG loans can be partially risk-covered - for example, loans provided to enterprises such as banks, financial service providers and manufacturing companies, or for infrastructure projects in emerging markets, to contribute effectively to development there.

Clarisse Kopff, a member of Munich Re's Board of Management responsible for Europe and Latin America, and KfW CEO Stefan Wintels took part in an exchange held on the occasion of the signing of the framework agreement in Munich. DEG was represented by Management Board members Monika Beck and Roland Siller (CEO). Also taking part was Thomas Klein, CEO of DEG subsidiary DEG Impact, which will take over the operational management of the partnership. As an investment advisor specialising in impact investments for professional investors, it has already played a key role in shaping this initiative.

“We are delighted to be further deepening DEG’s cooperation with Munich Re. As part of KfW Group and an experienced partner to the private sector, we have successfully championed high-impact investments in emerging markets for decades. We plan to significantly expand our promotional business in the coming years. Cooperation with major internationally active players plays a vital role in this,” commented DEG CEO Roland Siller at the signing.

“Our successful collaboration with DEG demonstrates how targeted risk management can mobilise private capital for sustainable development. As an international insurer, we feel a responsibility to create solutions that facilitate investment in growth markets and generate positive social impact. The expanded partnership with DEG reflects this commitment,” said Dr Ansgar West, Global Head of Direct Credit, Financial Risks Division, Munich Re.

Mobilising additional capital from investors is part of DEG’s promotional activities, which finances and supports private companies in developing and emerging economies. This enables larger-volume financing and investment in high-risk contexts and allows development impacts to be scaled up. To this end, DEG works with private and public actors, including the European Development Finance Institutions (EDFIs), the World Bank Group’s International Finance Corporation (IFC) and international financial service providers. By 2030, DEG plans to significantly expand its annual new business volume from its own funds and to mobilise more capital from other investors to generate greater impact.