Market and sector development

The business activities of companies can result in varying development outcomes, depending on the investment needs of the country and of the sector. The DERa evaluates by means of country and sector indicators of the World Bank whether investment is being made where it is most urgently needed.

Over 60% of DEG’s customers operate in low-income countries or countries where business conditions are difficult.

About 47% of DEG costumers contribute, by means of their investments, to reducing country-specific bottlenecks in energy, transport, IT and communication technology, or to creating access to financing. In doing so they improve the business environment of a country and stimulate further growth in the private sector.

The importance of innovation to market development is also reflected in SDG 9 (Industry, Innovation and Infrastructure): for industry to become more sustainable, more efficient technologies and industrial processes are needed. In order to make economy more inclusive, small and medium-sized companies also need to gain access to affordable financing.

73% of DEG customers contribute to innovation by introducing new technologies, developing new products or implementing new processes.

The financial institutions financed by DEG facilitate access to finance for over 4.7 million micro-, small and medium-sized enterprises (MSMEs).

With its “Up-Scaling” promotional programme, DEG finances investments of small and medium-sized enterprises (SMEs) that want to expand innovative business models in a developmentally effective way. The focus is on young companies in the fintech or greentech sector. It aims to make start-ups competitive, thereby creating new jobs.

Fast access to credit with digital financing

Name: Lulalend Pty Ltd.
Invested volume (in EUR): 5m
Country: South Africa
DERa category: Market and sector development
% achieved of category: 27

In a dry investment landscape, Lulalend, the digital lender based in South Africa, is providing underserved small and medium-sized enterprises (SMEs) with access to credit. The company’s digital approach and its proprietary credit-scoring algorithm have enabled it to offer a faster, simpler and more transparent service for SMEs to access business finance. By leveraging data from a variety of alternative sources to provide a faster and more accurate assessment of a company’s condition, Lulalend can review applications and disburse funds within hours, whereas traditional lenders take weeks or even months.

Renewable energy for sustainable development

Invested volume (in EUR): 30m
Country: Uzbekistan
DERa category: Market and sector development
% achieved of category: 68

Due to its geographical and climatic conditions, Uzbekistan has a high potential for solar and wind energy. To meet the country’s growing energy needs and reduce dependence on fossil fuels, the Uzbek government plans to increase energy supply through renewable energy to 25% by 2030. DEG supports the development of green infrastructure in Uzbekistan to enable sustainable development and to contribute actively to global climate protection goals. It is therefore co-financing the construction and operation of the Bash WPP and Dzhankeldy WPP wind energy projects in the Bukhara region.