A current DEG Impulse project shows how targeted financing, support and advice can lead to sustainable results. As a subsidiary of DEG, DEG Impulse supplements the financing solutions offered by DEG by providing targeted support measures for private sector businesses in developing countries and emerging economies, thus creating an effective lever for mobilising private funding.
Inclusive financial services for green growth
© CRESOL
A current example is Cresol AtivaBio, a project that was launched under the develoPPP funding programme in cooperation with the Brazilian financial institute and DEG client Cresol. It has just been presented in the context of the UN Climate Change Conference (COP30).
In Brazil’s Amazon region, economic informality and limited access to financial services are hindering inclusive and sustainable development. This is where Cresol AtivaBio comes in: with an overall volume of EUR 4 million, the project is helping to expand microfinance services for smallholder farmers and for micro and small entrepreneurs, particularly in underserved regions such as the Amazon and north-eastern Brazil. The German Federal Ministry for Economic Cooperation and Development (BMZ) and DEG partner Cresol are each providing half of the funding.
©pexels/Marcio Ribeiro
The project builds on an earlier initiative in which Cresol developed a microfinance credit cycle with support from DEG Impulse. This foundation is now enabling microfinance services to be scaled up across six Brazilian states.
‘The new project is an impressive example of how targeted support can facilitate inclusive financing and climate resilience in the very regions that need them the most. DEG Impulse’s involvement in collaboration with DEG partner Cresol underlines our clear commitment to sustainable development and to the empowering impact of better access to financial services,’ explained Monika Beck, a member of the DEG Management Board, at a meeting with Cresol during COP30.
The project supplements Cresol’s inclusive financing strategy, which also covers aspects such as empowering female entrepreneurship. Cresol and DEG Impulse are working together in this area too: DEG Impulse is supporting the Potencializa Elas Empreendedoras initiative, for example, which empowers women entrepreneurs through training and coaching. These activities are designed to benefit up to 320 women-led businesses.
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