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Portfolio summary and new business in 2023

DEG finances economically and developmentally sustainable, socially and environmentally sound projects by private-sector enterprises in developing countries. Its financing services encompass loans, loans with equity features and participating interests, combined with targeted advisory services for the companies it co-finances. 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 provides finance 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, enabling them to offer long-term financing to mainly small and medium-sized enterprises (SMEs).

Portfolio and locations

The DEG portfolio grew to EUR 10.3 billion as of year-end 2023 (2022: EUR 9.9 billion). These funds are used to finance investments in around 700 private enterprises in over 70 countries. These include almost 180 private equity funds (PE-funds), which make a total of EUR 18.5 billion available in capital for roughly 1,100 portfolio companies (investees). By continent, investments in Asia and Latin America account for the lion’s share of DEG’s portfolio at EUR 3.1 billion each, followed by the Africa/MENA region at EUR 2.8 billion. The Europe/Caucasus portfolio totals EUR 1 billion.

New business 2023

In 2023, DEG provided new funding of close to EUR 1.9 billion from its own funds for over 80 investments. The largest share of new commitments (approximately 40%) was allocated to the Financial Institutions customer cluster, followed by Private Equity Funds and Corporates. Commitments to financial institutions amounted to EUR 737 million in 2023, of which around one-third went to green and/or climate-related lines of credit. Commitments for the Private quity Funds and Corporates customer clusters totalled EUR 468 million and EUR 428 million, respectively. The Project Financing customer cluster received commitments of EUR 237 million. A total of 37% of new commitments in 2023 were for financing small and medium-sized enterprises (SMEs). DEG also mobilised nearly EUR 613 million from other investors and was able to provide a further EUR 40 million for 156 development projects through its subsidiary DEG Impulse, established in 2022.

New business 2023 by customer cluster

Financing German corporates operating in developing and emerging market countries is an important part of DEG’s activities. As well as loans and participating interests for German direct investments, this also includes providing financing for local enterprises, either directly or via local banks, such as for the purchase of German plant or components. Commitments from funds on own account for German corporates, especially those in the manufacturing sector, reached EUR 516 million in 2023.

For more information about DEG’s investments and the countries and sectors in which it is active, visit