KfW News

Facts and background on KfW's involvement in Gaza

Since Hamas’ terrorist attack on Israel on 7 October 2023, the development cooperation with the Palestinian territories has been repeatedly called into question. We receive questions regarding KfW's involvement in the Gaza Strip on a daily basis. Not all statements and figures in circulation are correct. We have compiled the main facts to facilitate a fact-based debate.

Frequently Asked Questions

KfW has not financed any protected areas.
No project involving KfW included the building of underground bunker facilities or similar. We can therefore rule out the possibility that the tunnel containing the murdered hostages was built as part of a KfW-financed project. The photo circulating online of a project sign referring to a “shelter” pertains to a project to support the reconstruction of private housing units (also referred to as “shelters”) for which KfW has provided grants on behalf of the German Federal Government.
We are currently looking into whether the tunnel is located in the vicinity of a residential rehabilitation project supported by KfW funds.

KfW Development Bank has been active in the Palestinian territories since 1995 on behalf of the German Federal Government with the aim of improving the living conditions of the Palestinian population. It currently has 72 projects with an ongoing portfolio amounting to EUR 765 million. Approximately 60% of the financed projects were implemented in Gaza before the conflict escalated.
After a comprehensive appraisal of the entire development cooperation (DC) portfolio, the Federal Ministry for Economic Cooperation and Development (BMZ) decided on 13 December 2023 that activities in the Palestinian territories would continue on an overall basis and would be adapted to the current situation.

Since 2011, KfW Development Bank has financed projects with UNRWA on behalf of the German Federal Government.
On 26 January 2024, Israel’s accusers were informed that 12 UNRWA employees were allegedly involved in the attacks on 7 October 2023. UNRWA has taken these incidents very seriously.
On 5 February 2024, UN Secretary-General António Guterres set up an independent investigation commission under the leadership of former French Foreign Minister Catherine Colonna with the focus on reviewing the internal processes for securing the political neutrality of UNRWA employees. The final report does not highlight any serious compliance deficits and only identifies a need for improvement with regard to individual processes, procedures and capacities, for which specific recommendations have been formulated. UNRWA has fully accepted this recommendation and developed an action plan to implement the recommendations as quickly as possible. According to Ms Colonna, Israel did not submit any evidence of further allegations relating to UNRWA personnel between January 2024 until the conclusion of the investigation on 20 April.
Based on the results, the German Federal Foreign Office and BMZ have decided to continue their cooperation with UNRWA in Gaza, as have countries such as Australia, Canada, Sweden and Japan. However, UNRWA is not currently implementing any measures in Gaza with KfW financing.

KfW works on a project basis in the Palestinian territories. The funds provided on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) flow to UN organisations or directly to the companies commissioned by the executing agencies of the respective projects for the required work and outputs. Payments are made exclusively in accordance with the documented progress of the project. The awarding of contracts takes place through public tenders in accordance with the standards that apply internationally to KfW-financed projects.

An overview of UNRWA employees is regularly provided by UNRWA for the host governments in the region and Israel. In addition, in the case of major construction measures, Israeli authorities are informed and must give their consent regarding FC project locations, executing companies and the import of materials.
There are no known cases of misappropriation of materials by Hamas in the Gaza Strip. Critical material imports pass through Israel and are checked in detail by the Israeli authorities at the time of import.
KfW and external experts also carry out regular audits of the use of funds. All payees – whether natural persons or companies – are checked using sanction lists (including the EU terror lists). No disbursement will be made in the event of a strike. In addition, KfW has established robust compliance mechanisms and contractually defined these with implementation partners.

Aerial view of the KfW building Senckenberganlage in Frankfurt. The skyline in the background.

KfW Development Bank

The business sector KfW Development Bank finances development cooperation projects and programmes around the world on behalf of the German Federal Government.

Find out more

Evaluation

We continuously learn from ongoing and completed projects by measuring their impact.

Find out more

Further information

The Federal Ministry for Economic Cooperation and Development (BMZ) has also published an answer on Gaza as part of a catalogue of answers (FAQ):

Does Germany finance Hamas in the Gaza Strip with development projects?

The German government does not provide any funds to terrorist organisations such as Hamas. The German government also does not pay any non-earmarked funds to the Palestinian Authority. The Federal Government's funds in the Palestinian territories are earmarked for selected projects under strict criteria.

The BMZ's strict control mechanisms, which apply to all projects in the Palestinian territories, include close and multi-stage monitoring of local partners and their employees, of material imported into the Gaza Strip and of financial flows.

In the current difficult situation, there is no question that Germany is committed to alleviating the suffering of the Palestinians. In the long term, Israelis and Palestinians will only be able to live in peace and security if the other side does the same.

As of 28 May 2024

Dialing a phone number closeup with shallow depth of field.

Press Contact

Here you will find the contact details for press representatives

Tip: Activate javascript to be able to use all functions of our website

Facts and background on KfW's involvement in Gaza

Frequently Asked Questions

Has KfW or KfW Development Bank financed the "shelter"/protected area in which several dead hostages were recently found?

How long has KfW been active in the Gaza Strip with the development cooperation on behalf of the German Federal Government? How is KfW currently active in the Gaza Strip? In what ways was it active through to autumn 2023?

What did KfW’s cooperation with the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) look like? What is its status now? What is the status of the ongoing reviews of UNRWA through the United Nations?

How were the projects implemented in practice on site?

Which checks by the Israeli authorities were and are routinely carried out on KfW measures in the Palestinian territories?

KfW Development Bank

Evaluation

Further information

Does Germany finance Hamas in the Gaza Strip with development projects?

Press Contact

Facts and background on KfW's involvement in Gaza

Frequently Asked Questions

Has KfW or KfW Development Bank financed the "shelter"/protected area in which several dead hostages were recently found?

How long has KfW been active in the Gaza Strip with the development cooperation on behalf of the German Federal Government? How is KfW currently active in the Gaza Strip? In what ways was it active through to autumn 2023?

What did KfW’s cooperation with the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) look like? What is its status now? What is the status of the ongoing reviews of UNRWA through the United Nations?

How were the projects implemented in practice on site?

Which checks by the Israeli authorities were and are routinely carried out on KfW measures in the Palestinian territories?

KfW Development Bank

Evaluation

Further information

Does Germany finance Hamas in the Gaza Strip with development projects?

Press Contact

Share page