DEG in 2023

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 over 60 years of experience, DEG offers solutions tailored to clients’ respective needs, comprising long-term financing, individual advice and promotional programmes.

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Against the backdrop of persistently challenging framework conditions, DEG was able to successfully continue its path in 2023. With EUR 1.9 billion for 83 projects, it financed a new record volume of private investment in developing countries and emerging economies.

DEG was also able to mobilise EUR 613 million from other investors such as development financiers and private institutional investors. Through cooperation with financial institutions, DEG has also contributed to providing companies in partner countries with the necessary liquidity.

DEG portfolio exceeds EUR 10 billion for the first time

The DEG portfolio amounted to EUR 10.3 billion at year-end, spread across close to 700 commitments in 71 partner countries.

Furthermore, DEG and its subsidiary DEG Impulse provided a total of EUR 92 million in stimulus for development-related projects, mostly from Federal Ministry for Economic Cooperation and Development (BMZ) budget funds, via consultancy and promotional programmes. DEG’s Business Support Services (BSS) enabled various measures to provide targeted support for companies on their transformation path, for example in resource management or in the qualification of employees.

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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.

As a development finance provider, DEG deliberately places the 17 global Sustainable Development Goals (SDGs) in the focus of its actions. As part of its Impact.Climate.Returns strategy, DEG is focusing even more on further strengthening the positive development and climate impacts of the co-financed projects. Advising the co-financed companies on their transformation path is an integral part of DEG’s offering. In doing so, DEG has set itself the goal of reducing greenhouse gas emissions in line with the 1.5-degree target of the Paris Agreement on Climate Change in order to achieve a climate-neutral DEG portfolio by 2040.

In an environment characterised by very challenging global developments, DEG was able to achieve a good result and to conclude the financial year with a positive result. Net income for the year before tax amounted to EUR 94.3 million (German Commercial Code).

More about the 2023 financial year at DEG

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The information contained in this online Annual Report 2023 is based on KfW’s Financial Report 2023, which you can download here. Should this online Annual Report 2023, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2023 takes priority.