Up-Scaling – Scaling innovative business models

With the Up-Scaling Programme, DEG finances new investments of early-stage SMEs aimed at scaling innovative business models with high development impact. The promotional programme is implemented by DEG is part of the “Partners in Transformation” offer of the Federal Ministry for Economic Cooperation and Development (BMZ).

The most important facts at a glance:

What kind of projects do we finance?

Eligible are early-stage SMEs (i) in the FinTech Sector, or (ii) with embedded finance components, or (iii) in the GreenTech Sector
The companies are registered in a developing country or emerging market
They may also be local subsidiaries of German or European companies
Preference is given to investments in Africa

What does DEG offer?

The Up-Scaling programme provides funding of 500,000 to 749,000 EUR
This investment constitutes a maximum of 50% of the total investment volume
Private sponsors must contribute a substantial share of equity (at least 25% of the total investment volume)
Up-Scaling funds must be repaid in the event of success of the company (depending on pre-defined financial criteria such as revenue or profit).

Conditions for funding

The programme addresses companies that fulfill the following requirements:

The company employs an innovative and scalable business approach with a high developmental impact
The company has a proven track record, i.e. it is operational for a minimum of 12 months and generates substantial revenues
The planned investment generates positive returns (as outlined by a comprehensive business plan and financial projections)
The company shows high growth potential owing to the size of the market and the target group
The company has the management capacity, human resources and know-how to substantially scale their activities

Development Effects 2022

In 2022, the DEG Up-Scaling programme enabled transformative changes through eleven new financing commitments totalling 57 active investments. Approximately one million people gained improved access to energy and around 40,000 tons of greenhouse gas emissions were saved. Despite the challenges of the COVID-19 pandemic, up-scaling companies improved access to healthcare for over eight million people and strengthened 4,926 medical facilities.

The financed companies created 1,382 new jobs, with 53% going to women, and facilitated access to financial services for 2.3 million people. With the help of the Up-Scaling programme, we promote sustainable development at various levels. The programme particularly contributes to the Sustainable Development Goals (SDGs) 3, 5, 7, 8, and 9.