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German Investment and Development Company (DEG), is a subsidiary of the German Investment Corporation (KFW). It was established in 1962. DEG finances long-term investments of private companies in developing and emerging market countries. DEG is one of the world’s largest private-sector development financiers, investing in nearly 80 countries. It joined the Association of bilateral European Development Finance Institutions (EDFI) in 1992.
DEG came eleventh from 21 non-sovereign DFIs assessed with a score of 27.7 out of 100. DEG developed and disclosed a bulk download file of investment data during the DFI Transparency Index, improving the accessibility of its data. DEG does not currently publish to the IATI Standard and as such do not score for IATI format publication. DEG scored for many organisation-level indicators across the components but dropped points by not scoring for any project-level indicators in three of the components, including Impact Mangement, ESG and Accountability to Communities, and Financial Information.
DEG came tenth in the Core Information component, with 8.42 out of 20. It scored for thirteen out of the seventeen indicators. It failed to score for status, domicile, investment instrument, and funding source. It gained points for format of publication for some indicators due to having a bulk download available. It did not, however, publish to the IATI Standard so did not score for that format where it was applicable.
DEG came joint-twelfth in the Impact Management component with a score of 6.75 out of 25. It received all of these points from organisation-level indicators, including impact measurement approach and evaluations, but not sector/country strategies. It did not score for any project-level indicators.
DEG came eleventh in the ESG and Accountability to Communities component, scoring 10.5 out of 30. It scored 100% for its E&S community disclosure policy and 50% for its E&S global disclosure policy. DEG scored points for its independent accountability mechanism (IAM) but it did not score for a community disclosure policy on this. DEG again did not score for any project-level indicators in this component.
DEG came joint-last in the Financial Information component, with 0.75 out of 15. It only scored points for financial reports/statements. Once again it did not score for any project-level indicators.
DEG scored 1.25 out of 10 in the Financial Intermediary (FI) Sub-investments component, which was joint second-last. It only scored for the FI (bank) use of funds indicator at the project level, it did not score for any organisation-level indicators.
- DEG should become an IATI publisher and disclose all investments to the IATI Standard.
- It should include more data points to its bulk download file that it already publishes elsewhere, including project description and client description.
- DEG should disclose further Core Information data points including unique identifier, status, sub-sector, total investment cost, disbursement, funding source, date of activity disclosure, approval date, and last update date. It should also consistently publish the sub-national location, domicile, and investment instrument.
- DEG should review its disclosure policy according to current best practice.
- It should disclose project-level Impact Management indicators, including additionality statement, activity indicators/metrics and results.
- DEG should disclose project-level ESG and Accountability to Communities indicators, including summary of E&S risks and E&S documentation.
- It should develop an early disclosure policy covering, at a minimum, high risk projects and disclose investments in line with the policy.
- DEG should create a policy guiding disclosure of the presence of the IAM at community level.
- It should provide assurance of community disclosure for investments when disclosure is required.
- For Financial Information indicators it should disclose for concessionality, mobilisation, and instrument-specific details (interest rate and loan tenor) and consistently disclose for repeat investment, currency of investment, co-financing, and share of equity.
- DEG should create a policy for the disclosure of FI sub-investments in line with Publish What You Fund’s DFI Transparency Tool.