Development Report 2022
DEG finances economically and developmentally sustainable, socially and environmentally sound investments by private-sector enterprises. Its financing services encompass loans, loans with equity features and participating interests, together with targeted advisory services. DEG’s aim is to contribute to the long-term success of its customers through reliable, long-term financing and advice, as only consistently successful enterprises will create permanent jobs and generate sustainable developmental impacts.
As a member of KfW Group and on the basis of its development policy mandate, DEG operates on the subsidiarity principle. It provides finance where the market fails to offer financing to enterprises at an adequate level, or indeed at all. DEG reaches enterprises in developing and emerging market countries both directly and indirectly. On the one hand, it finances businesses directly; on the other, it makes capital available to local banks and other financiers, enabling them to offer long-term financing to mainly small and medium-sized enterprises (SMEs).
* Middle East and North Africa
DEG’s portfolio is currently worth EUR 9.9 billion. These funds are used to finance investments by nearly 700 private companies in over 70 countries. They include around 170 private equity funds, which provide capital totalling EUR 16 billion for around 1,000 investees. By continent, investments in Asia account for the lion’s share of DEG’s portfolio at EUR 3.1 billion, followed by the Africa/MENA and Latin America regions at EUR 2.7 billion each. The European portfolio totals EUR 1 billion.
In 2022, DEG provided new funding of over EUR 1.6 billion from its own funds for 80 investments. Most of the new commitments were made to the customer clusters of “corporates” and “financial institutions”, with each accounting for more than one-third: commitments for corporates amounted to EUR 575.5 million and commitments for financial institutions to EUR 608.9 million. Commitments for the customer clusters “funds” and “project financing” totalled EUR 297.2 million and EUR 161.9 million, respectively, in 2022.
Just under 50% of new commitments in 2022 were for financing small and medium-sized enterprises (SMEs). DEG also mobilised nearly EUR 500 million from other capital providers in 2022. Through its newly founded subsidiary DEG Impulse, DEG was able to provide a further EUR 33 million for 163 development projects.
As at end 2022
Financing German corporates operating in developing and emerging market countries is an important part of DEG’s activities. As well as loans and participating interests for German direct investments, this also includes providing financing for local enterprises, either directly or via local banks, such as for the purchase of German plant or components. Commitments from funds on own account for German companies, which mainly operate in the manufacturing sector, reached EUR 391.6 million in 2022.
For more information about DEG’s investments and the countries and sectors in which it is active:
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH
Kämmergasse 22, 50676 Cologne, Germany
Phone +49 (0)221 4986-0