The promotion of local corporate financing is an important driving force in creating skilled jobs, income and prospects on the ground. Jobs not only provide monetary income but also act as the cornerstone of development – boosting living standards, raising productivity and fostering social cohesion. This is also recognised in SDG 8 (Decent work).
When it comes to creating jobs, it is not just the number of jobs that counts. Ensuring that they meet certain standards is equally important. For this reason, DEG requires its customers to comply with the International Labour Organization’s (ILO) core labour standards and basic terms and conditions as well as the International Finance Corporation (IFC) Performance Standards and to implement good HR and occupational health and safety management systems. Commitment to fair working conditions pays off for companies as better conditions increase motivation and productivity and reduce staff turnover and absenteeism.
DEG’s portfolio companies employed almost three million people in 2024. Around 1.9 million of these are employed by over 1,300 local enterprises that DEG invests in via funds.
With its impact rating, DEG evaluates from a net positive perspective whether customers make a positive contribution to decent jobs. 80% of DEG’s direct customers already provide decent jobs today (net positive impact).
26% of direct customers go above and beyond international labour standards to offer particularly favourable conditions in terms of remuneration, innovative working time arrangements or internationally recognised certifications.
DEG offers its customers advisory and support services in areas including development of labour standards, training programmes and improving HR management, financed with resources from the German Federal Ministry for Economic Cooperation and Development (BMZ) and DEG’s own funds.
Approximately 860,000 women were employed by DEG’s existing customers in 2024. 46% of direct DEG portfolio customers have demonstrated that they are laying the groundwork for non-discriminatory workplaces and employ more women or have more female managers than the industry average. 26% go substantially further – for example through targeted equality measures – in terms of both management structures and policies affecting all employees.
Alongside their effect on direct employment, the companies supported by DEG have an additional impact on indirect employment in their region. Their expansion benefits suppliers and service providers, which also create new jobs. In the case of the financial institutions promoted by DEG, the employment generated in their portfolio is particularly relevant. The activities of DEG customers indirectly provide employment for around 68.2 million people according to modelling using the JIM methodology which is the harmonised standard of the European Development Finance Institutions (EDFI).
