Development cooperation
A Million Jobs through development projects
The Entwicklungsfinanzierer DEG has in the past year, fewer new funds for private investment in developing countries is promised as in the previous year. Nevertheless, sees the Institute as “Krisengewinnler”.
The recently weaker economic activity in many Parts of the world also has the new business of the Deutsche Investitions – und Entwicklungsgesellschaft (DEG) influences. In the past year, said the DEG around 1.1 billion euros for the financing of private investments in developing and emerging countries. Compared to 2014, when the new business at 1.5 billion, a decline of 28 percent.
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Bruno If, the Chairman of the DEG management Board is nevertheless satisfied: “The 1.1 billion investment of 5.7 billion pushed. We are proud of it.”
The state-owned development Bank KfW subsidiary DEG financed investments in Asia, Latin America, Africa and Eastern Europe. For this purpose, it companies, banks or funds available or is directly involved in the project. Majority excludes them, so that other investors will have to participate.
A Million Jobs
Commitments of DEG are in addition to compliance, the environment, labour and human rights standards are adhered to. Projects and borrowers will be comprehensively reviewed and, increasingly, advice. “The result is”, says managing Director of If, “that we will never fast.”
How difficult to an exact examination, showed last year
Protests against a controversial dam project, the DEG was co-financed.
New and existing investments of the DEG have a total volume of eight billion euros, spread over 740 Engagements in more than 80 countries. According to of When are this a Million jobs have been created.
Funded projects range from a cement plant in Namibia about a cooking school in the Philippines up to off-grid solar power installations in Tanzania and Rwanda.
Trainees at the Center for Culinary Art in Manila. The operator received by the DEG two long-term loans.
Financing for small and medium-sized companies are made to last more than 60 percent of the new commitments. German companies also benefited, 115 received in the last year of the DEG, a total of 164 million Euro for their investments in developing and emerging countries.
“Krisengewinnler”
The currently difficult economic situation, have for the DEG also a good site that says When and called his Institute jokingly “Krisengewinnler”. “Especially during a global economic crisis, we see that the customers come to us.”
This would correspond entirely to the role of the DEG. “If the market is not functional, then we can help the customer, their Vision is to be realised.” Despite the difficult circumstances When for 2016 therefore, a new business at the level of previous years.
Through its parent company, the state-owned development Bank KfW, the DEG cheap refinance – to similarly good conditions as is currently the German state. Because the Institute is a non-profit, it must not try to other lenders for market shares from.
The more private investors in a project were interested, the less must be the DEG involved. “We are glad, when others do,” says If.
At the Berlin-based company Mobisol, the households in East Africa with solar power systems for trailers, is the DEG involved.
The Growth Market Of Africa
The largest part of new business was recorded in 2015 to Asia, where the DEG 383 million invested, followed by Latin America (310 million euros) and Africa (284 million euros). Just the business in African countries should continue to grow strongly, says If.
“In Africa there is a tremendous pent-up demand, what infrastructural development is concerned. And there is a tremendous need, the agriculture expand. All of that creates jobs.”
Of the financing of DEG in Africa are 60 million to German company has gone. “This gives us hope that there is a reversal of the trend in the
View of the German economy on our neighbouring continent of Africa,” says If. To many German entrepreneurs, he adds, thinking of Africa, first in war, crises and disasters.
Private investment in developing countries are generally associated with higher risks. According to the DEG but less than nine percent of the loans as in default, for example, because payment deadlines were not met.
The proportion of total failures is usually between one and two percent. Exact Figures for the past year, there is only, if the DEG in the spring of their annual report submitted.