DEG for German enterprises
“DEG has a very good understanding of the market environment and the challenges we face as a company.”
Dr. Alexander Schütz
Chief Executive Officer of Knauf Engineering GmbH
For many German enterprises, doing business abroad is important if they are to open up new markets and compete successfully. But foreign investments also present challenges. That holds especially true for medium-sized enterprises that have not previously operated in other countries.
German enterprises investing in developing and emerging-market countries can rely on DEG’s extensive experience, expertise and its network of 19 locations around the world. For 60 years, we have successfully worked with German businesses starting out in these markets. We provide reliable support, advice and financing for the entire duration of their involvement abroad. That includes facilitating measures in preparation for a planned investment, e.g., feasibility studies or pilot projects.
To further expand our services we initiated so-called German Desks in selected countries, jointly with local partner banks and chambers of foreign trade and supported by the BMZ. The aim is to provide additional support on the ground to German businesses and their local trading partners, which have a single point of contact to access information. The range of services extends from opening an account via loans all the way to trade financing for local enterprises wanting to source German plant and equipment or services. Currently there are seven German Desks.
AfricaConnect
In 2019, DEG launched AfricaConnect, an additional offer for European companies looking to invest in Africa. Investment loans from EUR 750,000 to EUR 4 million are available via AfricaConnect. AfricaConnect funds can therefore provide substantial co-financing for low-volume business investments. DEG also provides support with structuring of the investments.
AfricaConnect funding is also available to implement business measures related to the coronavirus pandemic. That way European companies successfully operating in Africa that are facing particular challenges due to the coronavirus crisis can obtain fast and unbureaucratic liquidity financing.
Funding is provided by the German Federal Ministry for Economic Cooperation and Development (BMZ).
Medical diagnostics in West Africa
In many African countries the medical diagnostics capacity is inadequate. This is where the Potsdam-based company “Das Labor. GmbH” gets involved. In Guinea and Côte d’Ivoire it supplies reliable medical diagnostics and facilitates blood tests or urinalyses, for instance. In 2021, DEG provided the company with a loan of EUR 900,000 under the AfricaConnect programme. A total of EUR 1.8 million are invested to expand existing laboratories and develop further sites in Togo and Benin, thereby creating new jobs.
As well as private individuals, its customers include surgeries, hospitals and occupational health services.
In 2019 “Das Labor.” initially acquired shares in an existing diagnostic laboratory in Guinea. Another laboratory site was opened in Côte d’Ivoire in 2020, followed by a rapid test production site in 2021, which is now producing up to 5,000 COVID-19 rapid antigen tests a day. Half of the tests are being sold locally, thereby improving protection for the local population. The other half are being issued to public health authorities at cost price within the framework of a development partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).
“We are very excited about the successful cooperation with DEG. We hope that many more German companies will follow and venture onto our neighbouring continent under the AfricaConnect programme, especially when it comes to productions in Africa for use on the African continent.”
Tom Halgasch
Founder and managing director of Das Labor. GmbH