Portfolio summary and new business in 2024

DEG promotes economically and developmentally sustainable, socially and environmentally sound investments by private-sector enterprises in developing countries. Its offer encompasses financing from its own funds, i.e. loans, loans with equity features and equity investments, combined with targeted advisory services. DEG’s objective is to contribute to its customers’ lasting success by providing reliable long-term finance and advice, as only consistently successful enterprises will create permanent jobs and generate sustainable development impacts.

On the basis of its development policy mandate and as a member of KfW Group, DEG operates on the principle of subsidiarity. It promotes the private sector in areas where the market fails to offer financing to enterprises at an adequate level, if at all. DEG reaches enterprises in developing and emerging market countries in two ways. It finances businesses directly as well as making capital available to local banks and other financiers that supply mainly small and medium-sized enterprises (SMEs) on the ground with financing. It also works together with its subsidiaries DEG Impulse and DEG Impact to offer additional advice and funding, for which budget funds are also used.

The DEG portfolio grew to EUR 11.6 billion as of year-end 2024 (2023: EUR 10.3 billion), financing investments in almost 600 private companies across more than 70 countries. These include around 180 funds, largely comprising private equity funds (PE funds). These PE funds invest in a total of almost 1,100 SMEs (investee companies) in developing and emerging market countries. By continent, financing for investments in Latin America accounts for the lion’s share of DEG’s portfolio at EUR 3.5 billion, followed by Asia at EUR 3.2 billion and the Africa/MENA region at EUR 3.1 billion. The Europe/Caucasus portfolio totals EUR 1.3 billion.

New business 2024
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In 2024, DEG provided new funding of close to EUR 2.5 billion from its own funds for over 86 investments. Commitments for the Corporates customer cluster totalled EUR 1,165 million in 2024. Commitments for the Financial Institutions and Funds customer clusters amounted to EUR 697 million and EUR 399 million, respectively. The Infrastructure & Energy customer cluster received commitments of EUR 209 million. A particular focus in 2024 was again placed on investments in climate and environmental protection. Commitments totalled around EUR 1.2 billion – a sharp rise compared to the previous year (2023: EUR 680 million). DEG also mobilised around EUR 583 million from other investors and was able to provide a further EUR 20 million for 120 development projects through its subsidiary DEG Impulse, established in 2022.