KfW Entwicklungsbank
Organisation general information
Organisation name: 
KfW Entwicklungsbank
Founding year: 
Total number of staff: 
Resources dedicated to microfinance: 
Percentage of microfinance activities: 
Between 0 and 20%
Type of organisation: 
Non profit
Government agency, Financial institution, Bank
Organisation's contact person
Contact person: 
Ms. Carmen Colla
KfW Bankengruppe, Palmengartenstraße 5-9
Frankfurt am Main
+49 (69) 7431 2941
+49 (69) 7431 2547
Organisation summary

Acting on behalf of the German Ministry of Economic Cooperation and Development, the goal of KfW Entwicklungsbank’s microfinance initiatives is to create and enhance the sustainable access of un(der)served groups of the population to credit, savings and other financial services (e.g. payment services or money transfers, microinsurance).

Microfinance is part of its concept of financial system development. It goes beyond microcredit and aims at integrating MFIs into local financial markets. KfW’s vision is to develop a healthy microfinance sector including a number of full-fledged deposit-taking MFIs. Apart from financial commitments, successful microfinance initiatives need a favourable framework and strong microfinance institutions to exhaust their full potential to grow. To achieve this goal, KfW Entwicklungsbank uses a variety of complementary approaches to support MFIs, the most important ones being “Greenfielding”, “Downscaling”, “Upgrading” and “Linkage”.

Type of intervention: 
  • Equity
  • Loans
  • Guarantees
  • Subsidies / donations in money
  • Mezzanine Finance, Securitization, Mandates (for other donors)
Countries of intervention: 
Programmes open to all regions.
Areas of intervention: 
  • Macro level: Strengthening national/regional microfinance support sector, Capacity building (focused on all MFIs), Infrastructure: credit bureaus, deposit insurance schemes
  • Intermediate level: Rural finance, Value chain development, Microfinance investment vehicules, Post-conflict/disaster microfinance, Social impact/performance, Urban finance, Gender, Youth
  • Micro level: Capital/equity investments, Financial product development and innovation, Performance (financial and social), MFI operations (e.g. general management, governance, finance and accounting, staff training, recruiting), Strategic planning, Marketing, Graduation of MFIs, Risk management, Management information systems, Greenfield set up
  • Other themes: Impact and performances studies, Sector mapping, Evaluation, Knowledge Management e.g. High level financial sector symposia
Main competences: 

KfW is one of the most important funders of microfinance worldwide. It has deep knowledge of microfinance markets in every region and specific know-how in: Responsible finance, due diligence, client need assessment, gender mainstreaming, local currency financing, structured finance, energy efficiency / renewable, energy finance, promoting and structuring of MIVs (anchor investor); financial system development approach.

KfW Entwicklungsbank's picture