DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, has reported a successful financial outcome for 2024. The organization provided EUR 2.5 billion in funds to private sector enterprises across developing and emerging markets. DEG's portfolio increased by approximately 13% to reach EUR 11.6 billion.
DEG CEO Roland Siller commented on the results: “DEG delivered impressive business development again in 2024 amid continued challenging conditions globally. The excellent new business volume shows that our support for private sector companies is in demand in developing and emerging market countries, as well as for German SMEs, where we also committed a record volume in 2024.”
The annual financial results were impacted by a shift in accounting practices aligning with KfW Group’s policies. This transition led to first-time application effects, influencing risk provisions and net interest income. According to the German Commercial Code, the profit before taxes for 2024 was EUR 3 million, affected by one-time changes. Without these effects, the pre-tax profit stood at EUR 88 million. Under IFRS, DEG’s annual pre-tax profit was EUR 105 million, surpassing the previous year’s EUR 93 million.
DEG's contributions to development were evident through its financing activities. Investments financed by DEG supported around 2.9 million jobs and generated EUR 202 billion in local income in developing countries throughout 2024. Renewable energy projects co-financed by DEG provided 25 TWh of green electricity to over 46 million people, preventing the emission of more than 13 million tonnes of CO2.
Looking forward to 2025, DEG anticipates continuing operations in a challenging geopolitical landscape. CEO Roland Siller stated, “We are confident that DEG will continue to play an important role in financing and advising enterprises in developing countries in line with their needs. This also applies to German companies.” Climate action remains a focus, with plans to enhance advisory services focusing on emission reduction and climate risk resilience. DEG also plans to continue financing renewable energy initiatives and offering green credit lines to local banks.