Access to trade financing, e-commerce and market analyses
DEG contributes to trade promotion programmes, working together with international private and development banks, which back up letters of credit (L/C) by selected local banks in developing countries. DEG and the donor banks have direct contractual relationships with each of the local banks involved and assume a share of the risk of default arising from L/C confirmation in each case.
Banking and financial services
As a component of a programme fostering broad-based economic growth in Namibia, German development cooperation is promoting a microfinance bank that offers financial services tailored to meet the needs of rural areas. In this cooperative project, GIZ supports the establishment of the bank’s institutional structure and provides a specialised advisor on site, while KfW provides equity participation and fosters efforts to attract investors. Improved access to financial and non-financial services is intended to enhance the framework conditions for entrepreneurial action and stimulate economic cycles through which small enterprises should also be able to participate in trade with neighbouring Angola and within the Southern African region.
Establishment of financial services for small enterprises
A programme for the promotion of sustainable economic development in Algeria is supporting the establishment of financial services for small enterprises. In cooperation with government authorities, a financing institution is being supported, which will make modern, market-based financial services available to small enterprises. The aim of these efforts is to improve the institutional framework to support the process of modernising Algeria’s private sector and promote the competitiveness of SMEs, thereby also tapping new markets within the Euro-Mediterranean Free Trade Area.
http://www.giz.de/themen/en/20652.htm for the programme in Algeria.
Financial System Development (FSD) Programme
The economic development of SMEs in Uganda is severely hampered by an underdeveloped financial sector. The FSD Programme aims to address the constraints faced by SMEs in Uganda’s financial sector. The Programme is assisting Uganda in the area of micro-finance to develop a legal framework, improve refinancing options, develop the payment transactions system, introduce leasing products. This project is co-funded by BMZ and Sida (Swedish Agency for International Development Cooperation) and the lead agency is the Bank of Uganda.