Market and sector development is essential for sustainable growth. Development finance institutions (DFIs) such as DEG make a key contribution in this regard, directing capital to countries and sectors where it is particularly needed or where private investors tend to be hesitant owing to higher risks. By mobilising additional resources, DFIs close funding gaps and create the necessary infrastructure, market structures and incentives for private investment. This is how they contribute significantly to market and sector development.
71% of DEG’s direct customers operate in markets or sectors where investments in development and infrastructure expansion are of above-average importance.
The degree of innovation also plays a key role in market and sector development. While process and technology innovations strengthen efficiency and competitiveness, market innovations open up prospects for entirely new products or markets and thus provide momentum for transformation, thereby making a significant contribution to the development of markets and sectors.
61% of DEG’s direct customers contribute to innovation.
Products and services play a particularly important role in some sectors in achieving sustainable development in line with the SDGs. These include investments in educational centres and renewable energies and access to financing for micro, small and medium-sized enterprises.
48% of DEG’s direct customers contribute directly to the SDGs through their products or services.
Name: IPI Group Holding Limited
Invested volume (in USD): 32 million
Country: Africa/MENA
DERa category: Market and sector development
Telecommunication is part and parcel of almost all business activities. IPI Group Holding Limited operates more than 30,000 towers from different mobile phone providers, thereby providing a reliable infrastructure that is crucial to economic success.
The company is operating in several countries in Africa and the Middle East and is continuously expanding its network. In many developing and emerging-market countries, telecommunication towers are not connected to the public power grid. Instead power supply is usually provided on a decentralised basis – primarily via diesel generators. IPI, however, uses a sustainable alternative, which is solar energy combined with high-performance battery systems. This solution allows the masts to be powered by green energy around the clock. IPI’s approach significantly reduces diesel consumption and currently saves around 40% of the energy previously required – equating to approximately 115,000 tonnes of CO₂ per year. The company is thus helping to drive sustainable growth in the telecommunications industry.
DEG has partnered with IPI since 2019. In the current financing round, DEG provided USD 32 million to the company, which will be used for investments in energy equipment. In addition, DEG is supporting the company with advice on setting up an environmental and social management system (ESMS) for the company headquarters in Lebanon and in some operating countries.
The investment contributes to SDGs 8, 9 and 17.
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH
Kämmergasse 22, 50676 Cologne, Germany
Telephone +49 (0)221 4986-0
