DEG provides EUR 1.6 billion for investments in developing countries

• New record in business year 2016
• EUR 871 million for small and medium-sized enterprises
• Business Support Services create extra added value

In 2016, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, committed around EUR 1.6 billion for investments in private-sector companies in developing and emerging-market countries (2015: EUR 1.1 billion) – a new all-time record in almost 55 years of DEG’s history. In the past year, DEG was in even greater demand as a provider of finance and advice. Its commitments facilitate entrepreneurial investments totalling EUR 6.6 billion.

"We experienced dynamic growth last year. DEG’s portfolio now amounts to EUR 8.6 billion. Private enterprises operating in developing and emerging-market countries count on our experience and knowledge to make investments successful in the long-term," emphasised Bruno Wenn, Chair of DEG’s Management Board.

Around 60 % of the new commitments in 2016 were destined for small and medium-sized enterprises. DEG thus again contributed to improving financing options for these companies in many developing countries.

For instance, DEG financed an investment for expanding a biscuit manufacturer, Beloxxi Industries Ltd. in Nigeria. The company can now enlarge its production using German plant technology and create approx. 300 new jobs. "Our involvement is supporting a successful SME family business as it continues to grow," mentioned Chairman Wenn. “"Our collaboration demonstrates how we can advance entrepreneurial initiative in Africa and create prospects for people."

DEG reached over 110 German companies with its financing and promotional programmes in 2016, providing them with EUR 268 million, almost double the previous year. One of these enterprises: the Schlote Group. The automotive supplier is setting up a production facility in China, its first overseas investment outside Europe.

With its Business Support Services DEG offers its customers tailored advisory solutions. In 2016, 85 such measures were performed. "By doing so, we're providing targeted support to companies for improving their energy efficiency or providing qualifying measures for local staff. This thereby creates economic and developmental added value," explained Wenn. For example, in Kenya the company Meru Greens Horticulture obtains advice on training farmers under contract. DEG promotional programmes also co-finance pilot investments and feasibility studies of companies. In 2016, around 180 projects were financed with approx. EUR 30 million.

On a regional basis, commitments developed particularly well in Latin America: A plus of over 60 % was recorded with EUR 507 million (2015: EUR 310 million). The continent was thus almost equal to Asia with EUR 512 million. A total of EUR 331 million was destined for Africa, growth of approx. 17 % compared with 2015.

In 2016, the lion's share of the commitments were made in the financial sector with EUR 592 million. DEG finances banks and funds in developing countries, particularly those that provide long-term capital to small and medium-sized enterprises. More funds were also allocated to investments in manufacturing industry at EUR 319 million.

DEG expects to face challenging markets and conditions again in 2017, and will strive to reach the level of new business generated in 2016. "Our customers can rely on us, and know that we will advise and support them – even when times are getting tougher," commented Wenn.