Latest news with #KfW
CNBC
3 days ago
- Business
- CNBC
Could German infrastructure be the next hot investment?
Germany's newly minted government is looking to the private sector to help save the country's ailing infrastructure. Economy minister Katherina Reiche called for a cash injection earlier this month: "We need speed and investments, and we need private capital," she told CNBC. "Of all the investments we will do, 10% of them could be done with public money, we need 90% of private sector investments." Germany has become riddled with infrastructure issues after a long period of underinvestment and restraints that have been linked to the country's fiscal rules, leading to crumbling bridges, broken train tracks and limited digitalization. These issues are a top priority for the new government, according to its coalition agreement. Germany earlier this year also enshrined a 500 billion euro ($564 billion) infrastructure and climate special investment fund in its constitution, alongside an amendment to its fiscal rules that is set to increase defense spending — both of which are widely seen as potential boosts for the country's struggling economy. "Overall, there are certainly large opportunities coming in defence and infrastructure," Greg Fuzesi, euro area economist at J.P. Morgan, told CNBC. And enthusiasm for Germany's investment opportunities seems to have gone global, according to Stefan Wintels, CEO of German investment and development bank KfW. "There is a lot of interest ... This year I was on the road in New York, London and Zurich. I observe and feel a lot of belonging to Germany. People want to invest in Germany," he told CNBC on the sidelines of the Tegernsee summit earlier this month. Robin Winkler, chief German economist at Deutsche Bank, echoed the sentiment, telling CNBC that the recent political moves could trigger a wave of private sector investment. "There has been a notable pick-up in investor interest in German infrastructure," he said, noting that the mobilization of private capital would be crucial for the government "to get a bigger bang for its buck out of the new special fund." On top of Berlin's plans to spend big on infrastructure, its commitment to cut red tape would also likely be attractive for investors, Winkler explained. "In recent years, infrastructure projects in Germany have been hamstrung by excessive bureaucratic and regulatory hurdles. There is now an ambitious plan to reduce these hurdles... We expect these reforms to incentivize private infrastructure investment, too," Winkler said. Berlin has also suggested it could take further measures to incentivize private investment, with economy minister Reiche telling CNBC that the government needed "to shape programs and make offers for the private sector to invest in our infrastructure." Dresden's Carola Bridge has become emblematic of the state of German infrastructure. It partially collapsed in September of 2024, just minutes after the last overground train of the night had crossed it. According to the organization Transport & Environment, thousands of bridges across Germany are in need of work and require require investments totalling around 100 billion euros. Elsewhere, Germany's train company, Deutsche Bahn, reportedly said it will need around 150 billion euros by 2034 to modernize, maintain and expand its existing network and boost digitalisation. More broadly, a report from the Cologne Institute for Economic Research from May 2024 suggests 600 billion would be needed over 10 years to move the country forward on infrastructure. Questions about infrastructure investment remain despite the political momentum, including concerns about time pressure and capacity, Jens Thiele, head of project finance and corporates at Hamburg Commercial Bank, told CNBC. "It will be interesting to see how long approval processes will take to get projects to RTB (ready to business) stage and whether there's enough capacity to develop all these projects within such a compressed timeframe," he said in written comments. J.P. Morgan's Fuzesi also noted timing is a key concern. "Investors have asked questions about the speed of delivery," he said. "In my view, "infrastructure" is very broadly defined and therefore constraints in one area can be overcome by doing more in another area. Ultimately, this will come down to political will," Fuzesi explained. He added that it was also unclear when — and how successfully — the government's goals to simplify planning processes would become a reality. For the German government, pressure is on to soon implement its investor-enticing promises and its investment targets.
Zawya
6 days ago
- Business
- Zawya
Germany, Egypt ink $134mln finance deal, new $24mln debt swap tranche
Egypt and Germany signed a €118m (approx. EGP 6.7bn) financial cooperation agreement to support education and the energy pillar of Egypt's 'NWFE' programme, alongside a new €21m (EGP 1.2bn) debt swap tranche for renewable energy supply. The agreements were signed by Egypt's Minister of International Cooperation, Rania Al-Mashat, and German Ambassador to Egypt, Jürgen Schulz. Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, also attended the signing for the new debt swap tranche, which raises the Egypt-Germany Debt Swap Programme's total value to approximately €297m (EGP 16.8bn). The €118m financial cooperation includes a €32m grant for the Comprehensive Technical Education Initiative, benefiting the Ministry of Education and Technical Education. This aims to establish 25 Egyptian Centres of Excellence by constructing around three sector-focused centres. The agreement also allocates €86m – €54m in development financing and €32m in grants – to connect Aqua Power Stations (1) and (2), enabling the offload of 1,100 megawatts of wind energy for the NWFE (Nexus of Water, Food, and Energy) programme's energy pillar. The separate €21m debt swap agreement involves the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company, and the German Development Bank (KfW), targeting sustainable and renewable energy supply improvement. Al-Mashat said 'these agreements further solidify Egypt's partnership with Germany, contributing to economic development, climate action, and investment in human capital.' She added that 'the financial support agreement is part of an ongoing partnership, bolstered under the framework of the Egyptian-European strategic cooperation and backed by both governments' leaderships.' Al-Mashat also noted the importance of the '€21m debt swap agreement, which builds on cooperation initiated in 2011. Numerous development projects have been carried out under this framework, and the debt swap program with Germany is a practical application of calls to reform the global financial system.' Electricity Minister Esmat confirmed that 'Egypt has undergone a comprehensive infrastructure overhaul and enacted legislative reforms to attract private sector and international investment in electricity and renewable energy, particularly in the renewable energy sector, making Egypt one of the most attractive destinations for investment in this sector.' He highlighted the 'expansion of both solar and wind capacities, driven by both domestic and foreign private sector investment.' Ambassador Schulz stated, 'Egypt is an important partner for Germany in achieving global climate goals. This is why Germany supports Egypt with expertise and funding in its strategic investments for the future, especially in the expansion of renewable energy.' 'From the very beginning, Germany has supported Egypt's climate initiative NWFE as its largest bilateral partner, with assistance amounting to approximately EGP 15bn. The projects referred to in the agreement signed by us today will make it possible to supply more than 2.5 million households with green electricity,' Schulz added. During COP27, Germany committed €250m to support the energy pillar of Egypt's NWFE programme, including €104m in debt swaps. A €54m agreement was signed in 2023 for electricity transmission network investment and to connect two wind farms (Noes Wind Farm and Amunet Red Sea Wind Farm, combined capacity 500 megawatts) to the national grid. Work is ongoing to sign the second debt swap tranche under this programme, valued at €50m.
Business Recorder
26-05-2025
- Business
- Business Recorder
Selected districts: Piloting of innovative social protection interventions approved
KARACHI: The Social Protection Department, Government of Sindh, in collaboration with the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ), convened the inaugural Project Steering Committee (PSC) meeting of the Adaptive Social Protection (ASP) initiative at the Planning & Development Board in Karachi. The Social Protection Department reaffirmed its commitment to institutionalizing a proactive, data-driven approach to social protection, addressing vulnerabilities caused by poverty, climate change, and disasters. The Steering Committee reached consensus on the critical need for inter-agency data sharing to enable anticipatory action, ensuring that the province is prepared to support vulnerable populations before calamities such as floods and droughts cause severe disruptions. The Committee also approved the piloting of innovative social protection interventions in selected districts including Badin, Sanghar, Sujawal, Thatta, and Karachi. These pilots aim to evaluate effective poverty alleviation models, which can later be scaled across Sindh under the leadership of the Social Protection Department. With technical support from GIZ Pakistan, acting on behalf of the EU and the German Government, the ASP programme is designed to enhance Sindh's capacity to implement adaptive, inclusive, and climate-resilient social protection strategies. The Social Protection Department is at the forefront of ensuring these strategies are responsive, equitable, and aligned with long-term development goals. Speaking during the meeting, the Secretary of the Social Protection Department Muzamil Hussain Halepoto emphasized the importance of defining expected outcomes and developing a structured work plan, along with a clear framework for future operations and scaling up. The Secretary also noted that KfW, the German development bank, has expressed interest in working in informal urban settings and rural areas of Karachi, particularly on a family planning and reproductive health initiative targeting informal workers. In this regard, the Secretary confirmed that a dedicated follow-up meeting with KfW is scheduled for next week to explore opportunities for collaboration. Furthermore, the Secretary highlighted that many past and current programs have largely targeted landowning agricultural workers—both male and female. Moving forward, he stressed that the focus must shift toward extending social protection to landless workers, who remain among the most vulnerable and underserved segments of Sindh's population. Chief Economist of the Planning and Development Board, Aslam Soomro, emphasized that embedding adaptive social protection into Sindh's development agenda is essential to addressing multifaceted challenges—particularly climate change and disaster risk. He acknowledged the Social Protection Department's central role in ensuring coordinated delivery across government agencies. Jeroen Willems, Head of Cooperation at the European Union, expressed strong support for the department's leadership and reaffirmed the EU's commitment to strengthening adaptive social protection through a whole-of-government and development partner approach. Wolfgang Hesse, Cluster Coordinator at GIZ Pakistan, commended the Social Protection Department's leadership and reiterated that linking social protection with climate adaptation reflects the broader Pakistan-Germany development cooperation strategy. Johanna Knoess, Head of the ASP Programme at GIZ, highlighted three key pilot interventions led by the Social Protection Department. These include: Supporting 40,000 women agricultural workers with registration, financial literacy, and livelihood investments; The Mamta Plus programme, targeting 250,000 pregnant and lactating women with digital and financial literacy and matched savings; Enabling 10,000 informal urban workers in Karachi to access bank accounts, enrol in savings programs, and access microfinance for small enterprises. Looking ahead, the Social Protection Department and its partners committed to scaling successful interventions and expanding coordination under the Team Europe framework. The Department is dedicated to making adaptive social protection a cornerstone of Sindh's resilience and equity agenda, with a focus on inclusion, sustainability, and innovation. Copyright Business Recorder, 2025
Zawya
25-05-2025
- Business
- Zawya
Morocco secures €300mln from EIB and KfW to strengthen grid, boost renewables
Morocco's National Office of Electricity and Drinking Water (ONEE) has secured €300 million in financing from the European Investment Bank (EIB) and the German development bank KfW to strengthen its electricity transmission infrastructure and support the country's energy transition. The funding, which includes €170 million from the EIB and €130 million from KfW, will be used to upgrade and extend the national grid by 731 km and increasing its evacuation capacity by 1,850 MVA, accordinng to a Frenck language press statement by EIB. The investment is part of ONEE's broader 220 billion Moroccan dirhams ($21.7 billion) roadmap through 2030, with MAD 177 billion dedicated to the power sector. The financing complements earlier investments such as the 270 MW Jebel Lahdid wind farm, co-financed by the EIB, KfW, and the European Union. ONEE has an installed capacity of 12,017 megawatts (MW), 45.4 percent of which comes from renewable energy, and is developing 12.5 gigawatts (GW) of additional capacity by 2030. Morocco is aiming for 56 percent of installed capacity from renewables by end-2027. (Writing by Majda Muhsen; Editing by Anoop Menon) (
Asharq Al-Awsat
23-05-2025
- Business
- Asharq Al-Awsat
Moroccan Utility ONEE Granted $340 Million in Loans for Energy Transition
Moroccan water and power utility ONEE said it has been granted 300 million euros ($340 million) in loans from the European Investment Bank (EIB) and German state lender KfW to support integration of renewable energy into the national grid. The financing package comprises 170 million euros from the EIB and 130 million euros from KfW, the utility said on Friday, adding that the money will be used to expand its electricity transmission network by 730km. ONEE plans to invest $19 billion in its electricity development plan through 2030, the year Morocco will co-host the World Cup soccer tournament, together with Spain and Portugal. The plan aims to increase installed renewable energy capacity to 56% of the country's total electricity capacity by 2027, three years ahead of the 2030 target, according to Reuters. Currently, installed renewable energy capacity stands at 45%, or 5.5GW. ONEE said it will add 15GW of installed electricity capacity, including 12GW from renewable sources by 2030. Last week ONEE signed a deal with the United Arab Emirates' TAQA to build a 1,400 km high-voltage transmission line with a capacity of 3,000 megawatts linking Western Sahara's renewable energy sites to central Morocco. Coal still accounts for more than 70% of Morocco's energy production. Seeking to diversify its coal-dependent energy sector, Morocco began in April a tendering process to build a liquefied natural gas terminal in the Mediterranean port of Nador.
