OREANDA-NEWS. September 18, 2012. Deutsche Investitions- und Entwicklungsgesellschaft mbH, is celebrating its 50th anniversary. Over the last half century, DEG has financed around 2,700 investment projects in developing and emerging-market countries by committing roughly 14 billion euros. Since 2001, DEG has been a subsidiary of KfW and as part of the German Development Cooperation it is responsible for the promotion of the private sector. "DEG was established to support developing countries in building the private sector. And still today, development is impossible without private sector involvement: financing to companies in developing countries by development finance institutions like DEG has reached over 40 billion US-dollars a year. The finance institutions thus significantly contribute to growth and job creation," said Bruno Wenn, chairman of DEG’s Management Board, describing DEG’s development from its founding to the present day.

In its beginnings in 1962, 30 DEG employees worked at Habsburgerring in Cologne, today it employs more than 450. It finances companies in every part of the world, including an environmentally sound tannery in Vietnam, a bio-farm in Egypt, a geothermal power plant in Kenya, a culinary school in Namibia and a private university in Brazil. "Most of the time our business was subject to uncertainties. But it is particularly in countries without established markets where partners that demonstrate persistence are required. Especially in times of economic turmoil, you need financiers that take on risks," explains DEG Chairman Wenn.

A history full of change, but true to one goal

DEG’s fifty-year history has been eventful. It has experienced economic crises and disruptions in world politics, its mandate was adjusted and its ownership structure changed, its area of operations and product range were expanded. But its goal has always remained the same: private sector promotion with the aim of contributing to development in poorer countries and to improved living conditions of the people. "On the basis of external evaluations we can demonstrate that companies financed by DEG are economically successful and contribute to a sustainable improvement of the people’s living conditions in developing countries through job creation, training and further education and technology transfer," says Wenn, summarising the successes achieved in the last 50 years.

Meanwhile DEG is one of Europe’s largest development finance institutions. Last year alone, it committed around 1.2 billion euros for 100 investments in 85 countries. For comparison: during the first ten years, DEG invested around 170 million Deutsche Marks, which is less than its current investment volume per annum in Africa alone. For a number of years already, its commitments have been exceeding the billion euro threshold and DEG intends to further extend its involvement. "Sustainable successful development is not possible without the involvement of private-sector companies. And companies require long-term finance. That is where DEG comes in - both now and in the future," illustrates chairman Wenn.

Already during the past few months, DEG has presented its work in its international and local context through different events and publications with the slogan "Courage to develop". A ceremony under the motto "Africa" at the Rautenstrauch-Joest Museum in Cologne will conclude the anniversary year on 1 October.

Also the residents of Cologne benefit from DEG’s objective to demonstrate social commitment to the local population on 14 September. On the company’s anniversary day, DEG employees support two charitable projects within the framework of "Kolner FreiwilligenTage"(Cologne Volunteers Days): improvement works at a primary school and accompanying senior citizens during their visit of the zoo in Cologne.