The mission of DEG, a subsidiary of KfW, is to promote business initiative in developing and emerging market countries as a contribution to sustainable growth and improved living conditions of the local population. To this end, KFW DEG make long-term financing and advice available to private enterprises investing in these countries.
To be precise:
Finance direct investments in thepartner countries in order to make a sustainable contribution to advancing their economic development.
Make long-term investment capital available as a means to share the risks arising from the investments and to make them less vulnerable to crises.
Give advice to companies on questions related to risk analysis and product development.
Invest in undertakings in all sectors of the economy, ranging from agribusiness to the manufacturing industry and services to infrastructure.
And promote the development of the financial sector while strengthening local capital markets in order to facilitate reliable access to investment financing on the ground, especially for small and medium-sized enterprises. By doing so, KFW DEG contribute to additional growth effects.
Use almost exclusively own funds rather than budget funds from the Federal Government.
Guided by international standards for environmental and social sustainability.
Pay particular attention to ensuring that the investments generate positive development impacts in the partner countries. DEG thus contributes to the Millennium Development Goals, which are a joint commitment of industrial and developing countries to tackle poverty in a sustainable manner.
DEG is an experienced partner for private-sector companies investing in developing and emerging-market countries. Together with the clients KFW DEG develop financing packages which are tailor made to the specific investment project and its risks. Furthermore, KFW DEG offer individual advice in all phases of a project. DEG also runs special programmes on behalf of the federal government, promoting entrepreneurial measures with an impact to development.
Financial Plus Advice
DEG offers private enterprises investing in developing countries the appropriate long-term finance: risk capital - equity capital, mezzanine finance -, loans and guarantees. And they create project-specific package solutions that are designed in such a way that the risk involved is commensurate with the constellation of the respective project. Together with the Dutch FMO and the French Proparco, DEG established the so-called "Friendship Facility". With this joint finance facility they are able to offer the customers even large financial deals from a single source.
Complementary to its financing and consultancy services, DEG also offers special programmes addressed to private enterprises. They join private-sector commitment and developmental goals and primarily address German and other European enterprises.
Under the programme develoPPP.de, which is carried out with funds of the Federal Ministry for Economic Cooperation and Development (BMZ), companies can realize measures in developing and emerging-market countries, which have an impact on the countries' development.
Also feasibility studies by small and medium-sized companies aimed at the preparation of developmentally sound investments can be co-financed by DEG using funds from the BMZ.
For boosting the development effects of the investment projects co-financed by DEG, it has initiated a technical assistance programme.This programme is financed by DEG’s own funds and funds from the BMZ.
The programme "Climate partnerships with the private sector" of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) helps companies implement climate-friendly projects in developing and emerging-market countries. See more