German Investment Corporation

Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a Development Finance Institution (DFI) and a subsidiary of KfW Group. It was founded in Cologne in September 1962 as a federally owned company by the former Federal President Walter Scheel.[4] Since its foundation, DEG has been headquartered in Cologne. In 2008, DEG moved into a modern, energy efficient office building in the city centre. DEG has 13 representative offices across the world: Bangkok, Beijing, Istanbul, Jakarta, Johannesburg, Lagos, Lima, Mexico City, Moscow, Nairobi, New Delhi, São Paulo and Singapore.[5] In 2017, DEG employed a staff of more than 570, both in Germany and abroad.[6] DEG generated new business totaling EUR 1.551 billion in 2017 and the balance sheet total amounted to EUR 5.328 billion. Since its foundation, DEG has co-financed almost 1,300 companies in more than 120 countries and committed a total of around EUR 8.6 billion.[7]

Deutsche Investitions- und Entwicklungsgesellschaft mbH
Private corporation (GmbH)
IndustryDevelopment Finance
Founded1962
HeadquartersCologne, Germany
Key people
Monika Beck[1]
Philipp Kreutz[2]
Christiane Laibach[3] (CEO)
ProductsLoans, Equity Financing, Feasibility Studies, Advisory Services, Consulting
Total assetsEquity Capital €2.5 billion (2017)
Number of employees
630 (2018)
ParentKfW
Websitehttps://www.deginvest.de/International-financing/DEG/
Former Logo

With a portfolio of around EUR 8.6 billion in over 80 countries DEG is one of the world's largest private-sector development financiers.

Mission and products

DEG finances long-term investments of private companies in developing and emerging-market countries. As one of the world's largest development finance institutions, it promotes private sector companies to contribute to sustainable economic growth and improved living conditions in these countries.[8] DEG focuses on projects and corporate finance in Africa, Asia, Latin America as well as in Central, Eastern and South-Eastern Europe. Its financing products, which are offered at market-oriented conditions, comprise

  • Business Support Services[9]
  • Equity capital
  • Guarantees
  • Long-term loans
  • Mezzanine financing

Among DEG's customers are corporates, financial institutions, funds and project financiers. Moreover, DEG offers advisory services, which are offered to both companies willing to invest and institutions promoting private-sector cooperation in its partner countries. Furthermore, DEG - as one of the three official partners - implements the develoPPP.de programme of the Federal German Ministry for Economic Co-operation and Development (BMZ). develoPPP.de[10] targets companies that invest in developing and emerging-market countries and are seeking ways to shape their corporate commitment in the long term. These develoPPP.de funds are mainly allotted to projects concerning environment, training and upskilling, workplace security and to outstanding pilot projects.

Since 2017, DEG offers financial support and solutions via German Desks[11] together with local partner banks and local German Chambers of Commerce Abroad. A local bank employee who operates in both languages and cultures, handles particular needs of German firms or supports investment financing for local companies wishing to acquire German equipment, for example.[11]

In all its financing activities, DEG applies the IFC Performance Standards,[12] including the relevant "Environment, Health and Safety" guidelines as well as the ILO standards. The Performance Standards, developed by the International Financing Corporation (IFC), are the most widely used assessment standards in international development financing.[12]

To ensure individuals, groups, communities or any other parties who believe to be adversely affected by a project financed or planned by DEG the right to be heard and the right to complain, DEG developed an Independent Complaint Mechanism (ICM) including an Independent Expert Panel. The Panel decides whether the complaint is admissible, responds to the complaint and is responsible for taking further possible steps.[13]

Contribution to the SDGs

Being part of the German development cooperation, DEG promotes and contributes to the 2030 Agenda including the Sustainable Development Goals (SDGs) adopted by the UN. Among these goals is the reduction of poverty by promoting job creation and income generation in less developed and rural regions. Moreover, DEG's customers employed more than 1.5 million people, produced green energy for around 26 million people and generated local income of EUR 67 million.[14] In 2017, 72% of the companies supported by DEG contributed to the alleviation of poverty (SDG No. 1) as well as 88% of them fostered decent work and economic groth (SDG No. 8).[14]

Cooperation

DEG closely coordinates its promotional activities with other European Development Finance Institutions, many of which have joined in the association of the European Development Finance Institutions (EDFI).[15] Further cooperation partners of DEG are the International Finance Corporation (IFC), a member of the World Bank, the European Bank for Reconstruction and Development (EBRD), as well as numerous local and regional development companies. The pooling of financing capacities and in-house knowledge leads to broader developmental efficacy and greater sustainability.

KfW Group

KfW is the parent company of DEG. The subsidiaries of KfW include:[16]

  • KfW IPEX-Bank GmbH – Provides project and corporate finance and offers trade and export finance in Germany and abroad.[17]
  • DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – Promotes private sector initiatives in developing and emerging countries.
  • FuB – Finanzierungs- und Beratungsgesellschaft mbH (FuB) – handling of special tasks associated with the German reunification.
  • dena – The Deutsche Energie-Agentur GmbH (dena), a 26% subsidiary of KfW Bankengruppe, promotes the rational and environmentally friendly production and use of energy including renewable energies.[18]
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See also

References
  1. "Monika Beck". www.deginvest.de.
  2. "Philipp Kreutz". www.deginvest.de.
  3. "Christiane Laibach (CEO)". www.deginvest.de.
  4. "DEG History". Archived from the original on October 25, 2013.
  5. "Our locations". www.deginvest.de.
  6. "Key data". www.deginvest.de.
  7. "DEG Annual Report 2017". www.deginvest.de. Retrieved August 23, 2018.
  8. "About DEG". Archived from the original on 2013-10-25. Retrieved 2013-10-25.
  9. "BSS: DEG is your partner beyond financing". www.deginvest.de.
  10. "develoPPP.de". www.deginvest.de.
  11. "German Desk – Financial Support and Solutions". www.deginvest.de.
  12. "Overview". www.ifc.org.
  13. "accessed on 9 October 2017" (PDF).
  14. "Our impact: Contributing to the SDG". www.deginvest.de.
  15. "EDFI | European Development Finance Institutions". EDFI.
  16. "Subsidiaries and Participations". www.kfw.de.
  17. "Export Finance | Project Finance". www.kfw-ipex-bank.de.
  18. "Home". www.dena.de.

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