A commitment to partnership in a fragmented world

Global and European cooperation is more important than ever in times of increasing polarisation and fragmentation. In order to overcome the economic, social and ecological challenges, all forces must be pooled - and public development banks and institutions are ideally positioned for this joint task. This was demonstrated once again at the recent summit of Finance in Common, the global network of public stakeholders in development finance, whose aim is to channel international financial flows towards sustainable investments in line with the 2030 Agenda and the protection of the climate and biodiversity. The global impact of climate change and the loss of biodiversity are two of the greatest challenges and risks facing society.

Representatives from almost 600 banks and international organisations, governments, associations, research and other institutions came together in Cape Town at the end of February to share knowledge and make better use of their resources. KfW was also present to share its expertise as a development and promotional bank, expand partnerships in favour of the Sustainable Development Goals and thus set an example of continuity: We are staying the course together!

In South Africa in particular, KfW projects focus on the areas of climate protection, renewable energies, water supply and sanitation, climate-friendly transport and a socially just transformation of the economy and society. Accordingly, Stefan Wintels, CEO of KfW Group, was delighted to sign a contract with the City of Cape Town to finance the modernisation and expansion of the electricity grid at the summit. The loan totalling EUR 150 million will make it possible to increase the use of renewable energy sources to supply electricity and improve the security of supply in the metropolis, which has to contend with frequent grid outages. “We at KfW are pleased to support the City of Cape Town as a long-standing partner in improving the infrastructure of its environmentally friendly power supply,” said Stefan Wintels. “A stable and sustainable electricity supply is an essential prerequisite for economic growth and social progress.”

In addition to the Just Energy Transition as a contribution to international climate protection, KfW is also promoting urban development and violence prevention measures in South Africa, thus helping to directly improve the everyday situation and quality of life of people, especially young people, in the urban area. Stefan Wintels was able to gain a vivid impression of this during his visit to the township of Khayelitsha.

WIN initiative and climate fund to improve competitiveness of companies and climate protection worldwide

A highlight in the area of mobilising private capital was the pitching of two successful KfW pilot projects. The WIN initiative, a broad alliance of business, associations and politicians coordinated by KfW with financial participation from KfW, aims to improve the general conditions for growth and innovation capital in Germany. By 2030, investments totalling EUR 12 billion are expected to be mobilised to strengthen the venture capital ecosystem. The WIN initiative thus contributes to improving the competitiveness and innovative capacity of German and European companies and to strengthening their position on international markets.

The second project, EMCAF, is an innovative fund of funds for climate protection investments in developing countries and emerging market economies. The fund was launched in 2021 by Allianz Global Investors and the EIB and was recently increased to EUR 450 million through a EUR 20 million investment by KfW on behalf of the German Federal Foreign Office. KfW is also contributing EUR 88.3 million to the EMCAF on behalf of the Federal Ministry for Economic Affairs and Climate Protection. The aim is to mobilise up to EUR 7.5 billion at project level - a further contribution to global climate protection and a successful example of international cooperation according to the claim of Finance in Common.