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).