KfW Development Bank German Financial Cooperation with Developing Countries Bank aus Verantwortung
More than 60 years of KfW Financing with a public mission Promotional bank of the Federal Republic of Germany Established in 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% federal states Headquarters: Frankfurt am Main Branches: Berlin, Bonn and Cologne Representative offices: 80 offices and representations worldwide Balance sheet total 2012: EUR 511.6 billion Balance sheet total 2013: EUR 464,8 billion Financing volume 2013: EUR 72.5 billion 5,374 employees (2013) Best long-term rating: AAA/Aaa/AAA 2
Locations KfW Development Bank and DEG Moskau Mexiko-Stadt Tegucigalpa Guatemala-Stadt San Salvador Managua Bogotá Quito Dakar Kiew Belgrad Sarajevo Priština Tiflis Ulan Bator Taschkent Podgorica Istanbul Baku Bishkek Beijing Tirana Ankara Dushanbe Skopje Jerewan Tunis Rabat Ramallah-Al-Bireh Damaskus Kabul Amman Islamabad Kathmandu Neu-Delhi Kairo Abu Dhabi Dhaka Hanoi Mumbai Vientiane Bamako Niamey Sana a Bangkok Ouagadougou Phnom Phen Accra Cotonou Juba Addis Abeba Kampala Jaunde Kigali Nairobi Kinshasa Daressalam Jakarta Manila Lima La Paz Brasilia São Paulo Windhoek Lusaka Pretoria Lilongwe Maputo Johannesburg January 2013 3
A bank with a wide array of functions Domestic promotion International business We promote Germany We ensure internationalisation We promote development Business Area Mittelstandsbank Promotion SMEs, business founders, start-ups Business Area Privatkundenbank Promotion construction of new housing and modernisation as well as education Business Area Kommunalbank Financing municipal infrastructure projects and global loans Germany/Europe agency business for Federal Government Business Area Export and Project Finance International project and export finance Business Area Promotion of Developing and Transition Countries Promotion of developing and transition countries Promotion of environmental and climate protection 4
KfW within the System of German Development Cooperation Political framework: BMZ, BMF, BMU, AA and others Implementation Development Bank Financial Cooperation Task: Promote reform processes and public investment Corporate Financing Task: Financing of private investment in developing and industrializing countries Technical Cooperation and Personnel Support Task: Enhancing the capabilities of people and organizations Provision of capital Complementary advisory services Cooperation with state and state-guaranteed private institutions Provision of capital Establishment and expansion of private business structures Provision of expertise 5
KfW Development Bank and DEG Our Competencies We provide more than money our core competencies are: 1. Climate and environment protection We are the world's largest financier of renewable energies in developing countries. 2. Financial sector development We are world leaders in the area of financial system development and microfinance. 3. Water We are one of the most important suppliers of expertise and the world s third largest bilateral donor in the water sector. 4. Development research We promote interaction and synergies between scientific research and practice. 6
Financing instruments of KfW Development Bank 2013 Tailor-made Financings for Every Partner Country Financial Cooperation (FC) Budget Funds 2013: 1.816 Mio. EUR KfW Funds 2013: 3.046 Mio. EUR Concessional Finance 1 Budget Funds only 2 FC-Development Loans: 3 FC-Promotional Loans: 1.750 Mio. EUR Budget Funds: 66 Mio. EUR KfW Funds: 911 Mio. EUR 2.135 Mio. EUR Hint: Numbers without mandates (2013: EUR 406 m.) 7
Relationship between BMZ and KfW From the Intergovernmental Agreement to the Financing Agreement BMZ Intergovernmental agreement Commitment of trust funds and KfW funds Partner country Mandate Provision of trust funds KfW Project monitoring, Evaluation Project executing agency KfW's partners are public authorities or state-owned enterprises 8
We are happy to assist you KfW Development Bank Palmengartenstrasse 5 9 60325 Frankfurt am Main Visitors entrance: Senckenberganlage 30-36 60325 Frankfurt am Main Michael Gruber Sen. Economist for Transport and Urban Development Telefon: +49 69-7431-3811 E-Mail: michael.gruber@kfw.de Telefon: 069 7431-3300 Fax: 069 7431-2944 www.kfw-entwicklungsbank.de Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 9
Thank You for Your Attention! Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 10
Information www.kfw-entwicklungsbank.de www.deginvest.de Annual Report on Cooperation with Developing Countries: http://www.kfwentwicklungsbank.de/ebank/de_home/i/download_center/jahresberi.jsp Evaluation report on the effectiveness of cooperation with developing countries: http://www.kfwentwicklungsbank.de/ebank/de_home/i/download_center/evaluierung.jsp Special publications / Online Library in the Internet: http://www.kfwentwicklungsbank.de/ebank/de_home/i/download_center/index.jsp Bank aus Verantwortung
An Example From our Project Work: Urban Public Transportation Improvement Program, South and Central America Problem Rising Costs due to urbanisation and increasing Traffic: Economic, Social, Environmental Approach Co-financing of Metro-Systems in Lima, Panama-City and Ecuador Impact By meeting growing infrastructure demand: Reducing congestion, traffic accidents, local pollution, and GHG emissions Contribution of FC USD 200 Mio. Support economic development 12
KfW's Promotional Activities Worldwide Tasks of the different Banks within the Group Tasks Financial cooperation with developing countries Entrepreneurial development work International Export- and Project Finance Objectives Promotion of reform processes, investments and advisory services in cooperation with governments and public sector institutions in developing and emerging countries Promotion of the private sector in developing and transition countries Financing of investment and advisory services for small and medium sized enterprises International lending in the interest of the European, in particular the German economy, to promote exports and foreign investments Economic sectors Climate/Environment Design and Development of financial systems Economical Infrastructure Social Infrastructure All economic sectors Climate/ Environment Infrastructure Transport Manufacturing Energy/Trade Telekom Health Raw materials Market entry Target markets Very early stage Early stage More mature markets KfW Development Bank DEG Developing country KfW IPEX-Bank Emerging nations Industrial country Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 13
KfW Development Bank Distribution of new commitments in 2013 (5.3 billion EUR) by sector (in %) Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 14
KfW Development Bank Distribution of new commitments in 2013 (5.3 billion EUR) by region (in %) Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 15
KfW Development Bank Development of Commitments (EUR in millions) Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 16
Keeping an Eye on the Impacts Requires... Leveraging ODA funds: Mobilising additional financial contributions Effective use of scarce public funds In this way we make an important contribution to achieving the ODA goals. Two-pillar approach: Budget funds for projects in LDCs (e.g. for poverty reduction in Africa) Financing at market conditions for projects in more advanced economies (e.g. renewable energies / energy efficiency) 17
The Project Cycle From the Idea to Operation Programme cycle Reform programme of partner country Country strategy/ Priority area strategy Programme preparation Project appraisal Financing agreement Programme implementation Evaluation The role of KfW To listen and to advise Support BMZ, Coordinate with GIZ Identify programmes, finance feasibility studies Programme appraisal, (programme proposal) Contract negotiations, definition of implementation agreement Progress reviews, tenders, advise executing agencies Final follow-up, ex-post evaluation Strategic direction Inspection Significant part of our work Thema der Präsentation / Ort / Datum [TT. Monat Jahr] 18