The promotion of local corporate financing is an important driving force in creating skilled jobs, income and prospects on the ground. Safeguarding and further development of qualified jobs are of utmost importance, as vocational training and employment in particular, pave the way out of poverty. Jobs not only provide monetary income. They are the cornerstone of development by boosting living standards, raising productivity, and fostering social cohesion. This is also recognised in SDG 8 (Decent work).
In 2023, DEG’s portfolio companies employed around 3.3 million people. The number of employees at these customers has risen by more than 900,000 since DEG invested in them.
The more than 1,100 companies that DEG invests in via funds offer employment to around 2.1 million people. 630,000 of these jobs have been newly created.
Employees by region
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.
84% of all DEG’s customers provide decent jobs. The remaining customers are working to improve their employment situation with the support of DEG. In addition, DEG promotes employee training among its customers. This is a key factor in companies’ development, as they are often unable to find qualified external staff to fill these vacancies.
A total of 76% of companies invest in the further training of their employees, meaning that they contribute to lifelong learning in line with Sustainable Development Goal 4 (Quality Education).
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.
DEG is committed to promoting women in the workplace and, as a founding member of the “2X Challenge”, has supported this initiative of the G7 countries’ development finance institutions for gender-lens investing (Sustainability Goal 5, Gender Equality) since 2018. This means mobilising capital for companies that are owned by women, are managed by women or specifically promote women as employees and customers. In 2023, DEG contributed USD 138 million to the 2X Challenge initiative.
Approximately 1,130,000 women were employed by DEG’s existing customers in 2023. Some 15% of these DEG portfolio customers employ more women or have more female managers than the industry average.
Qualification of young graduates to promote employment
Name: NxtWave
Invested volume (in EUR) as of 31.12.2023: 7.6 million
Country: India
DERa category: Decent jobs
Founded in 2020 by three first-time entrepreneurs, the EdTech company NxtWave improves the educational situation in India by bridging the industry-academia gap. The company provides digital learning content in native Indian languages and prepares young Indians for better job opportunities by equipping them with crucial skill sets needed to gain fresher jobs. The company’s platform and e-learning programmes are mainly aimed at IT students and young graduates from small towns and rural areas, many of whom are unable to find employment after college because of their lack of practical coding skills. Apart from providing programming courses, NxtWave also provides placement support for its students, helping them gain access to sustainable jobs in India’s future-oriented IT industry.
Demand for NxtWave courses is high. To address the educational needs of the lower mid-class students, NxtWave is constantly expanding its course offerings. DEG’s funds will be used for the development of platform technologies and content for e-learning courses. So far, NxtWave has supported several thousands of graduates to find jobs in more than 1,700 companies across the IT sector and leading international tech firms.
Better working conditions in the sugar industry
Name: Nicaragua Sugar Estates Limited
Invested volume (in EUR) as of 31.12.2023: 9.7 million
Country: Nicaragua
DERa category: Decent jobs
Nicaragua Sugar Estates Limited has been a customer of DEG since 2006. DEG supplies the company with long-term funding in a business environment where this type of financing is scarce. NSEL is an important employer in Nicaragua, producing and selling sustainable sugar, molasses, renewable energy and International Sustainability & Carbon (ISCC) certified ethanol. NSEL’s commitment to sustainability and good practices is demonstrated by being Bonsucro, Fair Trade and ISCC certified for over five years.
NSEL provides more than 4,000 local decent jobs in compliance with international labour standards and extensive employee benefits. NSEL is a founding partner of the Adelante Initiative, which is developing and implementing world-class interventions to protect workers from exposure to extreme heat during the sugar harvest. The interventions consist of provision of liquids (water and electrolyte solution), mandatory rest periods and shade, and ergonomically appropriate tools, according to a strict protocol.
In addition, to create a favourable work environment, NSEL provides benefits such as free access to a hospital for a spouse and children under 18 years of age, periodical medical exams, free K-12 school, food allowance, free training for its workforce and life insurance. In addition, the company maintains partnerships with independent producers and small growers creating additional employment.
The five DERa dimensions
