Investment in development and transformation - KfW and World Bank join forces

• Framework agreement at the Hamburg Sustainability Conference lays foundation for intensified cooperation
• Changing geopolitical situation and intensifying global challenges call for closer and more targeted international cooperation in development finance
• Projects financed jointly by KfW and the World Bank strengthen the international financial architecture and contribute to the reform of the World Bank

At the Hamburg Sustainability Conference today, KfW and the World Bank concluded a framework agreement with which they intensified their cooperation in financing international development and transformation projects. In the agreement, both parties agree to apply harmonised standards to jointly financed projects. In addition, the agreement enables a division of labour between the two institutions for the first time, thus bolstering the impact of their cooperation. Through joint financing, KfW and the World Bank can offer larger financing packages to meet the investment needs for the transformation to sustainable and resilient economies.

The increased financing needs of partner countries call for closer and more focused international cooperation in development finance. By concluding this agreement, the World Bank and KfW are taking this into account. At the same time, the agreement between the two institutions is regarded as a German contribution to the international financial architecture and the World Bank’s reform process.

KfW CEO Stefan Wintels said:

"International partnerships are a powerful lever for increasing the impact of development finance. This agreement is therefore a milestone for us in implementing our strategic agenda. I am sure that both partners will benefit from the enhanced cooperation. We see ourselves not only as an enabler in the implementation of important projects, but also as a source of impetus. We will contribute our expertise on a wide range of issues, such as biodiversity, structured funds and innovative approaches to support local currency financing."

Ajay Banga, World Bank Group President, said:

“The World Bank and KfW have a long history of working together across regions and sectors. Today, we open a new chapter in that history—by providing a roadmap for our teams to find fresh solutions to difficult challenges. It’s a springboard for us to scale-up our co-financing portfolio. On the ground, World Bank teams are strategically aligned with their KfW counterparts—and excited to do even more with KfW.”

You can find more information on KfW Development Bank at www.kfw-entwicklungsbank.de