DEG: Best new business volume in company history of EUR 2.5 billion in 2024

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH reported 2024 as an excellent year for new business. Despite continued challenging conditions globally, it committed significantly more funds – EUR 2.5 billion – to finance private investment in developing and emerging countries than in the previous year, also a highly successful year (2023: 1.9 billion euros). DEG also mobilised EUR 583 million from additional investors. Its portfolio grew to EUR 11.6 billion (2023: 10.3 billion euros), financing private-sector investments in over 70 countries.

Sharp rise in new commitments for investments in climate action and environmental protection

For investments that promote climate action and environmental protection, DEG was able to provide significantly more financing in 2024 than in the previous year, totalling EUR 1,195 million (2023: EUR 680 million). These included investments in two photovoltaic plants with battery storage systems in Senegal. DEG also co-financed a green hydrogen plant in Uzbekistan in 2024 – its first investment in this type of future technology.

“DEG is in demand to support private companies through their transformation and mobilise private capital, even – and especially – in challenging times. We generated the best new business volume and also set a new portfolio record in our 60-year company history in 2024. The sharp rise in financing for investments related to climate and the environment shows that there is a growing need for transformation financing, and that DEG is in a good position to provide it,” said DEG CEO Roland Siller.

EUR 620 million for German SMEs

German SMEs remain a key customer group for DEG. DEG provided a total of EUR 620 million to them in 2024, which was also a new record (2023: a total of EUR 561 million). As well as loans and equity investments for German companies, this figure includes financing for local companies purchasing German components, for example. This also includes a total of EUR 74 million loan financing using funds from the ImpactConnect programme for smaller investment projects of German and European companies, such as nutritious food production in India by the German manufacturer Lorenz.

The development impact of the investments co-financed by DEG is considerable – its existing customers in developing countries employed around 2.9 million people and generated EUR 202 billion in local income last year alone.

In addition to financing, DEG also offers various advisory services and promotional measures to actively support its customers’ transformation in a way that is tailored to their needs. For this purpose, a total of around EUR 20 million was committed for over 120 projects via its subsidiary DEG Impulse in 2024 to provide targeted support for companies, for example to develop sustainable supply chains or upskill employees.

Latin America tops the regional list, followed by Africa

In terms of regional distribution, the largest share of financing commitments went to companies in Latin America once again in 2024, in the amount of EUR 795 million. EUR 609 million was committed to companies in Africa/MENA, followed by Asia with EUR 535 million.

DEG expects demand for its needs-based financing and advisory services for enterprises in developing countries to continue in 2025. “The EU guarantees provided to us through the Global Gateway initiative play a key role here, as they serve to hedge the risks of private sector projects in higher-risk countries. This enables us to mobilise more capital for developmental investments. Our promotional activities make a decisive and budget-friendly contribution to important development cooperation objectives, while also involving Germany’s private sector,” said DEG CEO Roland Siller.