KfW has signed two financing agreements with the United Nations Development Programme (UNDP) totaling EUR 46.5 million to support the reconstruction of Syria's economy. The funding, provided on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), will focus on rebuilding markets, shopping centers, production facilities, and supporting small businesses.
The initiative is part of KfW's ongoing assistance to UN and non-governmental organizations in Syria since the civil war began in 2011. The main objectives are to restore key economic infrastructure and improve access to essential goods and services.
Christiane Laibach, a member of KfW’s Executive Board, stated: “Continuous commitment to development cooperation pays off.” She added: "For years, KfW has been supporting the Syrian population with regularly adapted projects. Following the change of government in Syria close to a year ago, we are starting new initiatives. They involve building economic structures to strengthen economic development and improve local people's lives. We place great importance on involving the local population and offering a future to returnees and internally displaced refugees."
Syria’s economy has suffered extensive damage since 2011. Much of its markets, production sites, transport networks, and energy infrastructure have been destroyed. Gross domestic product has fallen by 64%, and about 90% of Syrians now live below the poverty line.
The first project funded by KfW will use EUR 20 million to revive central marketplaces and trade centers as well as rebuild processing facilities such as mills, silos, slaughterhouses, and spinning mills. Energy-efficient construction techniques and renewable energy sources like solar power will be emphasized. Up to three million people could benefit from this work.
A second project with EUR 26.5 million aims to assist internally displaced people, returnees, and host communities in securing their livelihoods by restoring schools, vocational training centers, health care facilities, creating cash-for-work opportunities for 3,300 people, supporting 1,650 small- or medium-sized businesses financially, and providing vocational training for another 1,600 individuals.
Further information about KfW’s financing activities can be found here: