KfW Development Bank in 2023

*Differences in the totals are the result of rounding.

*Differences in the totals are the result of rounding.

*Differences in the totals are the result of rounding.

Loan and financing agreements totalling EUR 1.5 billion were agreed across several sectors. In doing so, KfW Development Bank is providing significant support to India on its way to more climate-friendly and climate-resilient development. Examples:

• Urban and mobility sector: Under the German-Indian partnership for green and urban mobility, several contracts totalling EUR 500 million have been signed for an environmentally friendly and energy-efficient public transport system in Bengaluru, which will transport 1.4 million passengers per day.
• Energy efficiency and electricity supply: Agreement of EUR 142 million for the “Energy Efficiency Programme II” project in consultation with Small Industries Development Bank India (SIDBI), which supports small and medium-sized enterprises in making energy-efficient investments. The “India Energy Reform Programme II” contributes to reducing power losses through investments in the modernisation of distribution networks. Another programme – “Climate-friendly electricity supply” – supports political reforms in the electricity distribution sector. It helps to make distribution networks more efficient and effective, avoid power losses and thus facilitate the supply of sustainably generated energy to the population.
• Renewable energy sources: The German-Indian solar partnership (Phase III) is financing the construction of solar power plants that will save a total of around 650,000 tonnes of CO₂ annually. All of the measures that have been part of the German-Indian solar partnership since 2017 have supplied approx. 5 million people with electricity from renewable energies. This saves around 6 million tons of CO₂ per year throughout India.
• Resilience and circular economy: Loan financing of several measures amounting to a total of EUR 100 million is intended to help the metropolitan region of Mumbai to successfully adapt to the impacts of climate change. It also supports better disposal of the megacity’s solid waste. Circular economy, biogas and recycling are intended to help reduce the mountains of waste.

A promotional loan of EUR 500 million was signed with the South African Ministry of Finance for comprehensive reforms of the South African energy sector to support South Africa’s coal phase-out and drive investment in the expansion of renewable energy. The funds are used to realign the country’s energy supply through the targeted promotion of renewable energies.

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In cooperation with the South African state promotional bank Industrial Development Corporation (IDC), a promotional programme was arranged to build a sustainable hydrogen economy. This will enable large-scale production and use of green hydrogen, for example for hydrogen-powered trucks and buses for long-distance transport, sustainable aviation fuel and the production of green ammonia for export.

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Chancellor of the Federal Republic of Germany Olaf Scholz and Brazilian President Lula da Silva signed the Just Transition Partnership – a milestone agreement that will promote climate protection, the energy transition and tropical forest protection in a socially just and environmentally sustainable manner. In addition, a EUR 100 million loan was agreed for the decarbonisation of the transport sector. Both countries share the strategic goal of sustainable neo-industrialisation in Brazil.

A new guarantee fund for the promotion of energy efficiency in MSMEs has been set up and implemented by KfW. In addition, a decision was made to facilitate reforestation in deforestation hotspots. This benefits more than 800 land-owning families and stores a total of 90,000 tonnes of CO2.

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The coasts of Costa Rica, Ecuador, Colombia and Panama are threatened by overfishing, pollution and climate change. Many people live from the sea, whether from fisheries or tourism. KfW supports the PACIFICO regional environmental fund, which promotes species protection and the enforcement of sustainable fisheries. Around 5,000 people will directly benefit from these projects, and they will indirectly benefit all residents of the coasts

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The destruction of important ecosystems in Central America threatens the livelihoods of the local population, while making them more vulnerable to the effects of climate change. Indigenous peoples and local communities protect more than 50% of the region’s species-rich forests and wetlands. However, they do not receive any economic recognition for this. KfW Development Bank is supporting the association representing indigenous communities and smallholder farmers in Central America (ACICAFOC) with EUR 10 million. Local communities in five countries (Belize, Costa Rica, El Salvador, Guatemala, Honduras) will benefit from the measures.

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Widespread poverty threatens natural resources, for example through logging, which leads to soil erosion. Degraded soils already account for 46% of the country’s land area. In order to slow down deforestation, KfW is promoting small-scale farmers’ afforestation and the creation of larger protected areas of community forests with EUR 15 million. Sustainable management contributes to the restoration of tree-rich landscapes and erosion control. New sources of income arise from the production of sustainably produced charcoal, the extraction of own seeds and the project's work activities, such as the breeding and planting of seedlings.

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The Russian war of aggression has plunged Ukraine into a deep crisis. KfW is issuing grants and loans on behalf of the German Federal Government, for example to provide housing for displaced persons, pay teachers' salaries and secure supply of electricity and water. The Federal Ministry for Economic Cooperation and Development (BMZ) has also launched a support package for the Republic of Moldova to mitigate the regional consequences of the war.

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We are promoting the strengthening of gender equality policy in Colombia with EUR 150 million. We use these funds to finance policy measures that are to be implemented over several years.

With the arrival of a new government under Gustavo Petro in 2022, a substantive realignment was initiated in many political departments. Among other things, new efforts are to be made in the peace process, gender equality is to be improved and the focus is to be placed on a more sustainable economy. Since Petro took office, a Ministry of Equality has already been established and extensive support for the victims of the long-standing violent conflicts has been committed.

The women’s rights situation in Colombia is a cause for concern. The Observatory of Femicides in Colombia reported 630 femicides, i.e. murders of women based on their gender, in 2020. The programme to strengthen gender equality policy is the first time that the Colombian government’s reform efforts to achieve gender equality and equality for diverse population groups such as LGBTIQ+ people and migrant women are being supported by FC.

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Due to political instability in Nigeria, the Central African Republic and Cameroon, over 1 million people have fled to the north and east of Cameroon in recent years. As a result of the flight movements, serious shortages have arisen in terms of food, clean drinking water and basic health care. Due to malnutrition, almost 40% of young children in the affected regions suffer from growth disorders. The maternal mortality rate is particularly high – every 35th woman dies during childbirth.

As part of the BMZ special initiative “Refugees and Host Countries”, KfW Development Bank is financing a programme designed with UNICEF to strengthen children and women in Cameroonian communities affected by refugee movements.

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KfW has already been involved in nature conservation in the Serengeti for many years and supports “Traffic Management for Protected Areas through Digital Solutions” on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

Growing numbers of visitors are damaging the sensitive ecosystem and increasingly leading to a critical traffic situation in the national park. Therefore, the aim is to monitor and control traffic. Every vehicle entering the park will be digitally recorded and registered, speeding and illegal off-road driving will be detected and can be sanctioned. It is hoped that the measures will reduce accidents and soil compaction, and wildlife will experience less stress. In the future, the concept will also be applied in other protected areas in Tanzania.

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Remain capable of action despite crises and even in fragile contexts – Remote Management, Monitoring and Verification (RMMV) enables projects to be controlled, monitored and verified remotely. RMMV has now also been successfully deployed beyond crises in the most diverse areas of development cooperation – for example in the construction industry, for the inclusion of women and girls or also to improve donor coordination. A wealth of corresponding best-practice solutions was presented by international experts at an online conference held by KfW Development Bank and the Federal Ministry for Economic Cooperation and Development (BMZ) at the beginning of February 2023.

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The FC evaluation unit has launched the Interactive Database for Evaluation and Learning (IDEaL), making the collected evaluation results of KfW Development Bank available to the general public in an interactive application. The collected project information, lessons learnt and target systems used make it possible with just a few clicks to precisely search for best practices from completed projects. These best practices are required, for example, for planning of new projects. The digital knowledge bank offers insights into more than 1,100 evaluation results from the past two decades and thus a representative cross-section of the Financial Cooperation portfolio from all regions and sectors. The app is continuously updated with new results and promotes institutional and cross-institutional learning.

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