The business activities of companies can result in varying development outcomes, depending on the investment needs of the country and of the sector. The DERa evaluates by means of country and sector indicators of the World Bank whether investment is being made where it is most urgently needed.
Over 62% of DEG’s customers operate in low-income countries or countries where business conditions are difficult.
47% of DEG customers contribute, by means of their investments, to reducing country-specific bottlenecks in energy, transport, IT and communication technology, or to creating access to financing. In doing so they improve the business environment of a country and foster further growth in the private sector.
The importance of innovation to market development is also reflected in SDG 9 (Industry, innovation and infrastructure): for industry to become more sustainable, more efficient technologies and industrial processes are needed. In order to make economy more inclusive, small and medium-sized companies also need to gain access to affordable financing.
76% of DEG customers contribute to innovation by introducing new technologies, developing new products or implementing new processes.
The financial institutions financed by DEG facilitate access to finance for 11.9 million micro-, small and medium-sized enterprises (MSMEs).
DEG supports young, innovative business models through its fintech/venture commitment and the Up-Scaling promotional programme. The aim is to improve the market viability of small and medium-sized enterprises (SMEs) seeking to scale their innovative business models with a high development impact, to promote innovation and to create new jobs.
Qualified healthcare for all income groups
Name: Georgia Healthcare Group JSC
Invested volume (in EUR) as of 31.12.2023: 17.5 million
Country: Georgia
DERa category: Market and sector development
Since 2016 DEG has been working together with Georgia Healthcare Group (GHG) to support it in the further development of a comprehensive healthcare offer in Georgia. GHG is not only the leading healthcare service provider in Georgia with activities in clinics, hospitals, pharmacies, diagnostics and health insurance, but also a significant employer in the private sector in Georgia and is continually up-skilling its doctors, nurses and other medical professionals.
Healthcare in Georgia was long characterised by shortcomings in terms of standards, quality and equipment. In recent years, the company has taken over more than 25 healthcare facilities from the Soviet era and equipped them with state-of-the-art technology. The company now offers patients of all income levels access to qualified healthcare and specialised treatments. With the quality of medical care and an integrated healthcare platform with a high degree of digitalisation, GHG has set new standards in the Georgian healthcare market.
Bank promotes women-owned SME
Name: Orient Commercial Joint Stock Bank
Invested volume (in EUR) as of 31.12.2023: 49.8 million
Country: Vietnam
DERa category: Market and sector development
Accounting for 45% of GDP, small and medium-sized enterprises (SME) are crucial to the Vietnamese economy. Nevertheless, access to finance is difficult for them. Orient Commercial Joint Stock Bank (OCB) is a commercial bank in Vietnam that offers a wide range of banking services, and already supports SME lending nationwide.
A loan from DEG enables OCB to expand its SME portfolio. 50% of the loan is earmarked for women-owned businesses to promote their participation in economic life. The expansion of the portfolio will contribute to creation of new, qualified jobs at OCB and also new jobs in the financed SMEs. What is more, the bank generates local income, including wages and salaries and income taxes.
The five DERa dimensions
