Christian Laibach, a member of the executive board of KfW Bankengruppe, has highlighted the importance of development cooperation for Germany and Europe. Laibach emphasized that development cooperation is a key instrument to support German foreign and security policy. In 2023, Germany has pledged around 11 billion euros for development cooperation projects worldwide, which Laibach believes is a wise investment.
According to Laibach, global challenges such as climate change, natural disasters, disrupted trade routes, and migration can only be addressed through international collaboration. She stressed the importance of involving developing and emerging countries, as well as fragile states, in finding solutions to these challenges. The KfW has been working with partner countries in cooperation with the German government for many years, building partnerships and providing support to fragile states, poverty alleviation, and biodiversity conservation.
The majority of financing for projects in economically more advanced countries comes from the capital market, while grants remain crucial for supporting fragile states, poverty reduction, and biodiversity conservation. In 2023, out of the 9 billion euros pledged by KfW Entwicklungsbank, around 5 billion euros were mobilized through the capital market. KfW’s subsidiary DEG finances its activities from its own resources, providing loans and investments to private companies that invest in developing countries.
Laibach highlighted that Germany benefits greatly from international interconnectedness and an open, rules-based global order. The KfW, with its decades of expertise in international finance, has a wide network and is deeply committed to development cooperation, particularly in challenging circumstances. The KfW has been monitoring the success and impact of its projects for about 25 years, with over 80% of the projects being successful. Laibach emphasized the value of these results for the development cooperation community, as they provide valuable insights for more effective future projects.
The article also presents four arguments and examples of successful and effective development cooperation. Firstly, development cooperation contributes to energy and resource security and the global value chain. The KfW supports the implementation of the EU’s Global Gateway Strategy by partnering with strategically important countries, such as Morocco, which will produce hydrogen for the EU. Secondly, climate change and biodiversity conservation benefit all inhabitants of the Earth. The KfW plays a vital role in fulfilling Germany’s international climate commitments, with over 60% of its financing in 2023 focusing on global climate and environmental protection. The KfW also supports the protection of biodiversity through various projects worldwide. Thirdly, development cooperation aims to improve living conditions and create future prospects for people in developing and emerging countries. For example, in Sudan, the KfW, together with UNICEF, supports mothers and children with access to healthcare services and measures against malnutrition. Finally, development cooperation activities pave the way for German and European companies. The DEG has supported a German medium-sized company in Brazil with a loan for modernizing its paper production, leading to greater efficiency, environmental friendliness, and job creation.
In conclusion, development cooperation is crucial for Germany and Europe, with the KfW playing a significant role in financing and implementing projects. The organization’s track record and transparent monitoring system ensure a high success rate of over 80% for its projects. Development cooperation addresses global challenges, contributes to climate protection and biodiversity conservation, improves living conditions, and creates opportunities for German and European businesses.
Table:
| Key Points |
|——————————————————————————|
| – Development cooperation supports German foreign and security policy |
| – Germany pledged around 11 billion euros for development cooperation in 2023 |
| – KfW Entwicklungsbank mobilizes most financing through the capital market |
| – DEG provides financing from its own resources |
| – Development cooperation contributes to energy and resource security |
| – KfW supports the EU’s Global Gateway Strategy |
| – Climate change and biodiversity conservation are important focus areas |
| – KfW financing accounts for over 60% of German climate commitments |
| – The KfW supports the protection of biodiversity through various projects |
| – Development cooperation aims to improve living conditions and create prospects |
| – The KfW is a gateway for German and European companies |
Quelle: KfW / ots
