DEG investments: Positive impact on development and economy

DEG investments have a positive impact on development even in difficult times. Its financial support creates three million jobs and generates 209 billion in local income. In addition, these investments enable green energy for around 33 million people.

The German Investment and Development Company (DEG), a subsidiary of KfW, has made successful investments even in times of multiple global crises, showing both positive impact on development and economic success. In 2022, DEG clients helped to secure and improve developmental effects with their entrepreneurial projects. The impacts achieved were even higher than in the previous year.

Development Policy Report 2022 published

The recently published Development Policy Report 2022(deg-entwicklungsbericht2022.de) shows in detail the impact of DEG's involvement. Last year, the co-financed companies were able to achieve even better results in terms of environmentally sound business practices. This included complying with international environmental standards and conducting resource and energy efficiency checks to make production processes more sustainable. The number of people employed by companies in developing countries increased to around 3 million, and they generated local income of 209 billion euros in 2022.

DEG uses the development impact of its investments as a key steering tool. These are measured using the Development Effectiveness Rating (DERa). Each year, quantitative and qualitative indicators are recorded to measure development for each DEG client.

DEG clients' contributions to the global Sustainable Development Goals (SDGs) are also recorded and assessed. The companies' contributions to SDG 8 (Decent Work and Economic Growth) are particularly high at 93%. This means that fair-paying local jobs are created and local income grows.

The energy suppliers co-financed by DEG produce around 35 terawatt hours of electricity from renewable energy sources every year (SDG 7) and can currently supply over 33 million people with this. This avoids 24 million tons of CO2 emissions.