Development Report 2022
DEG offers promotional programmes that allow it to advise and support its customers in a targeted manner.
Through its “Up-Scaling programme”, it provides German and local SMEs that have innovative business models and want to invest in developing countries with the necessary resources for their development in a focused way. Through AfricaConnect, DEG provides long-term loans to European companies for expansion into Africa.
DEG’s subsidiary DEG Impulse gGmbH has been providing advice and funding for the Business Support Services (BSS) and develoPPP programmes since 1 September 2022.
Through its Business Support Services (BSS), DEG can help enterprises to further improve their performance and growth and the development impact of their investments. Corporate governance, further training of employees and suppliers, risk management, environmental and social management, and resource and energy efficiency are fields of application of BSS. Through BSS, DEG also supported humanitarian aid programmes of its Ukrainian customers.
With the develoPPP programme run by the German Federal Ministry for Economic Cooperation and Development (BMZ), DEG promotes private-sector business projects in areas where entrepreneurial opportunities and development policy potential coincide. During the past year, DEG committed to 53 develoPPP projects amounting to a total project volume (including company contributions) of EUR 32.5 million. Thirty-four projects were or are being implemented in the target region of Africa, and 15 projects in collaboration with German companies. Through this programme, DEG provided co-financing of up to EUR 2 million for company initiatives with development impact. The company receives up to 50% of the project costs.
develoPPP Ventures promotes young companies, in particular, by granting them up to 100,000 euros for their investments to scale. At least 50% of the total funding must be covered by the company. Currently the programme is available in Kenya and Tanzania, other countries are to follow. Twice a year, idea competitions are being held to select companies such as Flamingoo Foods.
The start-up Flamingoo Foods is one of a few of Tanzania’s rice and maize producers. It has developed an innovative digital business model for the entire supply chain, covering sourcing, storing, processing and selling of paddy rice and maize. Its digital ordering and transport system connects suppliers and traders, thereby enabling tracking of supply chains. This contributes to reducing food waste and improving local food security.
DEG helps the Tanzanian company to scale its solution with the grant financing and tailor-made technical assistance.
develoPPP Ventures is aimed at young companies that develop innovative and powerful business models to scale, in areas such as agritech, fintech, healthtech or e-mobility. The programme strongly aligns with DEG’s strategy as well as the new BMZ priorities Just Transition, Poverty and Hunger, Feminist Development Policy and Digitalisation.