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 provide green energy for around 33 million people.

Even in times of multiple global crises, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a subsidiary of KfW, has made successful investments that have had both a positive impact on development and economic success. In 2022, DEG customers contributed to securing and improving developmental effects with their entrepreneurial projects. The impact achieved was even higher than in the previous year.

Development policy report 2022 published

The recently published Development Policy Report 2022(deg-entwicklungsbericht2022.de) shows the impact of DEG's involvement in detail. The co-financed companies were able to achieve even better results in terms of environmentally friendly business practices last year. This included complying with international environmental standards and carrying out resource and energy efficiency checks to make production processes more sustainable. The number of people employed by the companies in developing countries rose 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 central management tool. These are measured using the Development Effectiveness Rating (DERa). Quantitative and qualitative indicators for measuring development are recorded for each DEG client every year.

DEG customers' contributions to the global Sustainable Development Goals (SDGs) are also recorded and evaluated. The companies' contributions to SDG 8 (Decent Work and Economic Growth) are particularly high at 93%. This means that fairly paid jobs are created locally and local incomes grow.

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