German Investment Corporation

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Deutsche Investitions- und Entwicklungsgesellschaft mbH
Private corporation (GmbH)
Industry Development Finance
Founded 1962
Headquarters Cologne, Germany
Key people
Christiane Laibach
Philipp Kreutz
Bruno Wenn, Chairman
Products Feasibility Studies, Equity Financing, Advisory Services, Loans, Consulting
Total assets Equity Capital €1.80 billion (2012)
Number of employees
473 (2012)
Parent KfW
Website https://www.deginvest.de/International-financing/DEG/
Headquarters in Cologne
Former Logo

Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a Development Finance Institution (DFI) and a subsidiary of KfW Group. It was founded in Cologne in September 1962 as a federally owned company by the former Federal President Walter Scheel.[1] Since its foundation, DEG has been headquartered in Cologne. In 2008, DEG moved into a modern, energy efficient office building in the city centre. DEG has 13 representative offices across the world: Accra, Bangkok, Beijing, Istanbul, Jakarta, Johannesburg, Lima, Mexico City, Moscow, Nairobi, New Delhi, Sao Paulo and Singapore.[2] In 2016, DEG employed a staff of more than 539, both in Germany and abroad.[3] DEG generated new business totaling EUR 1.553 billion in 2016 and the balance sheet total amounted to EUR 5.820 billion. Since its foundation, DEG has co-financed almost 1,300 companies in more than 120 countries and committed a total of around EUR 8.6 billion.[4]

Mission and products[edit]

DEG finances long-term investments of private companies in developing and emerging-market countries. As one of Europe's largest development finance institutions, it promotes private sector companies to contribute to sustainable economic growth and improved living conditions in these countries.[5] DEG focuses on projects and corporate finance in Africa, Asia, Latin America as well as in Central, Eastern and South-Eastern Europe. Its financing products, which are offered at market-oriented conditions, comprise

Among DEG's customers are corporates, financial institutions, funds and project financiers. Moreover, DEG offers advisory services, which are offered to both companies willing to invest and institutions promoting private-sector cooperation in its partner countries. Furthermore, DEG - as one of the three official partners - implements the develoPPP.de programme of the Federal German Ministry for Economic Co-operation and Development (BMZ). develoPPP.de targets companies that invest in developing and emerging-market countries and are seeking ways to shape their corporate commitment in the long term. These develoPPP.de funds are mainly allotted to projects concerning environment, training and upskilling, workplace security and to outstanding pilot projects. As part of Germany's development cooperation, DEG also contributes to meeting the UN's Sustainable Development Goals (SDG), especially to poverty reduction by creating jobs and providing income in less developed and rural regions.[6]

As part of the International Climate Initiative (IKI) launched by Germany's Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety, DEG runs the programme "Climate partnerships with the private sector" and thereby promotes the technology and knowledge necessary to support the development of a climate-friendly economy.[7]

In all its financing activities, DEG applies the IFC Performance Standards, including the relevant "Environment, Health and Safety" guidelines as well as the ILO standards. The Performance Standards, developed by the International Financing Corporation (IFC), are the most widely used assessment standards in international development financing.[8]

To ensure individuals, groups, communities or any other parties who believe to be adversely affected by a project financed or planned by DEG the right to be heard and the right to complain, DEG developed an Independent Complaint Mechanism (ICM) including an Independent Expert Panel. The Panel decides whether the complaint is admissible, responds to the complaint and is responsible for taking further possible steps.[9]

Contribution to the SDGs[edit]

Being part of the German development cooperation, DEG promotes and contributes to the 2030 Agenda including the Sustainable Development Goals (SDGs) adopted by the UN. Among these goals is the reduction of poverty by promoting job creation and income generation in less developed and rural regions. Corporates financed by DEG pay taxes that amount to EUR 1.5 billion annually. Moreover, they generated or ensured 145,000 jobs in 2016.[10]

Cooperations[edit]

DEG closely coordinates its promotional activities with other European Development Finance Institutions, many of which have joined in the association of the European Development Finance Institutions (EDFI). Further cooperation partners of DEG are the International Finance Corporation (IFC), a member of the World Bank, the European Bank for Reconstruction and Development (EBRD), as well as numerous local and regional development companies. The pooling of financing capacities and in-house knowledge leads to broader developmental efficacy and greater sustainability.

KfW Group[edit]

KfW is the parent company of DEG. The subsidiaries of KfW include: [11]

  • KfW IPEX-Bank GmbH – Provides project and corporate finance and offers trade and export finance in Germany and abroad.[12]
  • DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – Promotes private sector initiatives in developing and emerging countries.
  • tbg – Technologie-Beteiligungs-Gesellschaft mbH – Currently, solely focused on previous commitments.
  • FuB – Finanzierungs- und Beratungsgesellschaft mbH (FuB) – handling of special tasks associated with the German reunification.
  • dena – The Deutsche Energie-Agentur GmbH (dena), a 26% subsidiary of KfW Bankengruppe, promotes the rational and environmentally friendly production and use of energy including renewable energies.[13]

See also[edit]

External links[edit]

References[edit]

  1. ^ DEG History, accessed on 25 October 2013
  2. ^ [1], accessed on 9 October 2017
  3. ^ [2] accessed on 9 October 2017
  4. ^ [3], accessed on 9 October 2017
  5. ^ About DEG
  6. ^ [4], accessed on 9 October 2017
  7. ^ [5], accessed on 9 October 2017
  8. ^ [6], accessed on 9 October 2017
  9. ^ [7], accessed on 9 October 2017
  10. ^ [8], accessed on 9 October 2017
  11. ^ KfW Subsidiaries
  12. ^ KfW IPEX-Bank
  13. ^ dena - German Energy Agency