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News from 2022-01-27 / KfW Development Bank

Progress towards a just world

Mobilising private funds for development causes

For nature conservation and sustainable tourism: Rangers in Isalo National Park, Madagascar
For nature conservation and sustainable tourism: Rangers in Isalo National Park, Madagascar

In 2022, Germany has assumed the presidency of the G7 and thus also the opportunity to expand its strong role in development cooperation. KfW Development Bank intends to provide active support in this regard. The G7 motto Progress for a Just World is also our goal. In 2021 KfW Development Bank has achieved a great deal in the area of impact financing in particular: we have participated in 30 new and existing impact funds (IFs) with a volume of around EUR 575 million on behalf of the German Federal Government and the EU. EUR 35 million came from KfW's own funds. In total, KfW has invested in 80 funds and more than EUR 4 billion. In these IFs KfW works together with many renowned international donors. Institutions such as the Nature Conservancy, Allianz, BlackRock or the African Development Bank invest in these IFs together with KfW. This money makes an important contribution to mobilising private funds for the German government's development policy agenda.

The funds are active in various areas. In 2021, KfW provided around EUR 140 million for IF in the area of climate protection. Among other things, support for the Natural Disaster Fund was expanded. This fund, together with reinsurance companies, makes it possible to insure climate risks in developing and emerging countries. As a result, millions of beneficiaries in 21 countries were covered. Participation in the Africa Conservation and Communities Tourism Fund finances conservation tourism businesses affected by the COVID pandemic in sub-Saharan Africa, where some of Africa's most biodiverse ecosystems are found. This creates jobs and supports nature conservation. With another IF, KfW supports the development of sustainable value chains. This not only enables products from African farmers to find their way onto the world market. More income from further processing also stays in Africa. By expanding the partnership with the increase in KfW's participation in the Green for Growth Fund, FC expanded its partnership with an IF that is a pioneer in energy efficiency and renewable energies in Eastern Europe. In this way, KfW is making an important contribution to a sustainable planet and supporting the protection of the environment and biodiversity as well as an accelerated global energy transition.

Two workers welding and finishing a greenhouse
Creating new jobs: a start-up in Nairobi, Kenya

KfW Development Bank has also made its mark in the area of economic transformation. EUR 48 million alone were pledged for the establishment of a fund for sustainable supply chains. This fund is intended to provide targeted support for smaller companies in emerging economies to meet the higher requirements set out in the new Supply Chain Act. In order to alleviate the impact of the COVID-19 pandemic on small and medium-sized enterprises - particularly in Africa - KfW has participated in further funds with around EUR 150 million. This provides companies with urgently needed financing to keep their business operations running or to expand. Together we are creating and preserving several thousand jobs. We are setting the course for Africa's economic recovery and supporting the financial stability of the banking and corporate sector.