DEG in 2021

Within KfW Group, DEG – Deutsche Investitions- und Entwicklungsgesellschaft – is responsible for cooperation with private companies that invest in developing countries and emerging economies. Companies involved in these countries to tap into new market opportunities are often faced with particular challenges. As a reliable partner with almost 60 years of experience, DEG offers them solutions tailored to their respective needs, comprising long-term financing, individual advice and promotional programmes.

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DEG can look back on a successful financial year, which was once again challenging due to the ongoing COVID-19 pandemic. As a result of the pandemic and the varied economic development in the partner countries, DEG continued to be particularly in demand as an experienced adviser to its customers.

German companies are a key client group of DEG. In addition to loans and investments for German direct investments, this also includes financing for local companies, directly or via local banks, which acquire German equipment or components, for example.

DEG uses the Development Effectiveness Rating (DERa) system to rate the effectiveness of its commitments in terms of promoting local development and contributing to the global sustainability agenda – the 17 Sustainable Development Goals (SDG). For 2021, the portfolio’s DERa analysis shows that DEG customers employ a total of 2.8 million people. These companies also generated local income of over EUR 147 billion. At 78 points, the DERa score for the DEG portfolio was once again above the target value of 75 points in 2021. DEG provides information about the development effectiveness of its commitment and its contributions to global sustainability goals in an annual development report.

DEG ended 2021 with a very good result. In addition to net interest income and earnings from participations, income from the partial reversal of risk provisions – greatly increased in the 2020 financial year due to the pandemic – helped DEG end the 2021 financial year with pre-tax net income for the year of EUR 216 million (HGB). This is added to DEG’s equity capital in order to reinforce its risk-bearing capacity. This forms the foundation for DEG’s business activities and its self-funded expansion.

More about the 2021 financial year at DEG

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The information contained in this online Annual Report 2021 is based on KfW’s Financial Report 2021, which you can download here. Should this online Annual Report 2021, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2021 takes priority.