SDG 17 – Partnerships for the goals

On behalf of the German Federal Government, KfW Development Bank cooperates closely with EU institutions in order to further improve the effectiveness of European development cooperation (DC). This not only includes cooperation with the European Commission, but also consultation with other European development organisations.

Within Europe, we work particularly closely with the French development bank Agence Française de Développement (AFD) and the European Investment Bank (EIB) through the Mutual Reliance Initiative. This includes everything from staff exchanges to the development of common processes that enable us to work more efficiently together, dividing labour better between us and reducing the demands placed on local partners. All institutions bring their specific strengths and experience to the table to make this possible.

A particularly efficient tool for mobilising capital is known as EU blending. This is a combination of EU grants and loans from development banks aimed at enabling larger investment projects and more efficient use of public EU development funds. Blending enables provision of long-term and low-interest financing for important infrastructure projects in developing countries and emerging economies.

The EU is also pooling its strengths to contain the coronavirus pandemic under the motto "Team Europe" to sum up its coronavirus response. This includes all of the contributions of the EU Member States and the European Commission, as well as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). To date, Team Europe has been able to mobilise nearly EUR 46 billion in support of this effort.

In order to make use of Africa’s potential and resources for sustainable development, the Federal Government has worked with the EU to develop the EU-Africa Strategy. Economic partnership agreements between the EU and African countries will assist Africa’s economic and social development.

The Federal Ministry for Economic Cooperation and Development (BMZ) is giving the Compact-with-Africa initiative agreed during the German G20 Presidency in 2017 a concrete form, with substantial commitments at bilateral level in a “Marshall Plan with Africa” and reform partnerships with selected countries. KfW is also implementing these programmes on behalf of the Federal Government.

Development in Brief - Blending 2.0: Could mobilising private capital work in poorer countries, too?(PDF, 70 KB, accessible)

KfW shares its development financing expertise with the other banks in the group and with other bilateral financial institutions, often through close cooperation with the World Bank or regional development banks like the African Development Bank, the Asian Development Bank and the Inter-American Development Bank. KfW is among the largest bilateral co-financiers of the World Bank and it participates in World Bank Group multilateral facilities on behalf of the Federal Government.

KfW is one of the co-founders of “Finance in Common”. Under this name, 450 public development banks met for a summit in 2020 and formed a global coalition. A fellow participant is the International Development Finance Club (IDFC) which was formed back in 2011 on KfW’s initiative and now comprises 27 members from industrialised and developing countries and emerging economies, who make annual commitments worth over USD 600 billion.

Interview with Head of Department Dr. Jan Martin Witte on Impact Investments: "We invest to make an impact".

KfW implements numerous projects in cooperation with civil society organisations, including Welthungerhilfe, church aid organisations and political foundations.

The hygiene kits and educational materials promoted by KfW for schoolchildren in Turkey are distributed locally by the United Nations Children’s Fund, UNICEF. This is because UNICEF is already active locally and it has the necessary structures in place to reach these schoolchildren.

Cooperation with the private sector mobilises capital, relieves the burden on public budgets and offers the opportunity to apply private sector expertise in development cooperation. This is why KfW works to involve private companies and financial institutions in the various functions of development cooperation. One tried-and-tested form of cooperation is “Public-Private Partnerships” (PPP). Last but not least, private companies also help to roll out financial and infrastructure services efficiently in partner countries.

With impact-oriented investments (impact investing), the investors finance profitable and developmentally desirable measures through legally autonomous investment funds. KfW invests capital in these funds, thereby reducing the risks that private investors run. It also works with private foundations on projects in sectors like healthcare and education, or in relation to crises and refugees.

Interview with Head of Division Stefanie Lindemann-Kohrs about impact investments: "We invest to make an impact"

KfW supports global partnerships for research projects, including jointly with Gavi, the Vaccine Alliance. However, it also works to strengthen local research facilities in partner countries. For instance, KfW is working in Malawi with researchers from Heidelberg University and the College of Medicine in Blantyre on evaluating a healthcare programme for mothers and new-born babies, which KfW is co-financing. The scientists are reviewing the impact that the programme is having on healthcare for mothers and infants.

On the other hand, Germany also learns from its partner countries. The idea for the Berlin-based educational centre TUMO, which teaches programming through play, comes from Armenia and has now been brought to Germany thanks to KfW’s promotion.