• Mobilised funds increase by 30%
• New commitments in Latin America rise significantly
• New business strategy: even stronger focus on impact and climate
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH can report a successful financial year in 2021. Despite the ongoing coronavirus pandemic, it was finally able again to commit more funds than the previous year – some EUR 1.5 billion, compared with EUR 1.4 billion in 2020 – to finance private investments in developing and emerging countries. It also mobilised EUR 507 million from other capital providers, over 30% more than in 2020. The DEG portfolio grew to EUR 9.2 billion (2020: EUR 8.5 billion).
“The pandemic continues to create challenging conditions in many of our partner countries. It is therefore all the more gratifying that an initial assessment of the development impact of our investments shows that customers are weathering the crisis better than expected. In 2021, for example, the companies we co-financed in developing countries employed 2.8 million people and generated EUR 147 billion in local income,” explained Roland Siller, CEO of DEG.
At EUR 737 million, financing for small and medium-sized enterprises again accounted for around half of DEG’s new business. In this way, DEG helped improve the shortage of long-term financing for such companies in many developing countries.
On a regional breakdown, Latin America saw a particularly sharp increase in financing commitments, up almost 70% year on year to EUR 566 million (2020: EUR 334 million). DEG used these funds in countries in the region particularly affected by the pandemic to help local SMEs obtain capital and continue operating. Around one-third of new financing commitments went to Asia, followed by Africa and Europe.
In addition to providing financing from its own funds, DEG offers advisory services and promotional programmes. For instance, it facilitates Business Support Services that boost the development impact of co-financed investments, as well as feasibility studies and pilot projects. In 2021, via its advisory and promotional programmes, DEG committed EUR 62 million for 179 projects, a high proportion of which again related to Covid-19 Response measures in health and prevention.
Through the AfricaConnect programme launched in 2019, DEG committed EUR 46 million in 2021 (2020: EUR 40 million) to investments of European companies in Africa, such as medical diagnostics in Côte d’Ivoire.
Global challenges, such as climate change, sustainability requirements and digitalisation, are changing markets and potential around the world. Against this background, DEG has developed a focussed business strategy for implementation in 2022. “Together with our customers, we want to develop solutions for dealing with global challenges. To achieve this, we will have an even sharper focus in the future on high-impact and climate-friendly investments and will continue expanding our advisory services. We see great potential in guiding companies wishing to tackle the transformation with our support,” commented CEO Roland Siller. In addition to providing debt and equity capital, DEG will continue enhancing the advisory services it provides companies on impact and climate change.
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