Private sector development is as essential to development cooperation as public sector support: via private sector investments and the strengthening of small and middle-sized enterprises, employment opportunities are generated and tax and foreign exchange revenues increase. Development banks like OeEB provide finance for these private investments, thereby making a significant contribution to economic development. Numerous international studies have proven how important this kind of cooperation is.
OeEB's chosen focus is on the support of micro, small and medium-sized enterprises (MSME) as well as on the development of renewable energy and resource efficiency. Why this enables such a significant development impact is demonstrated in the following focus areas.
How effective are development banks?
The report "International Finance Institutions and Development Through the Private Sector" (2011), which was commissioned jointly by 31 multilateral and bilateral development banks, answers the following questions: Do the investments of the International Financial Institutions (IFIs) actually help the people in emerging markets and developing countries? What measurable results are there? more
The role of development banks in Europe
A study by Dalberg Global Development Advisors, an international consulting firm, examined the methods and effectiveness of the national development banks in Europe - also known as "European Development Finance Institutions" or EDFI for short. The association has 15 members including OeEB. more
Private Sector Development
Boosting the private sector has become an increasingly important part of development work over the last few years. Tools like loans to entrepreneurs are an impulse for economic growth on a broad scale. more
Studies show that access to the financial sector makes a decisive contribution to the reduction of poverty in a country for all levels of society. However, around 3 billion people worldwide have no access to financial services at this time. Whereas local banks frequently only give loans in an amount of 300,000 euros or more, OeEB supports institutions that extend microcredits with very small repayment instalments and little collateral. more
More than 2 billion people have no direct access to modern energy for cooking and heating. In addition to firewood, batteries, candles, petroleum and the like are used which often creates a substantial financial burden. Despite the minimal need for energy, this amounts to nearly a third of their incomes. In many cases, renewable energy is already the less expensive alternative. It offers people new opportunities to use their low incomes in a better way. It also gives workshops and small companies new production possibilities and sources of income. more
According to the World Bank, around 3 billion people work worldwide, but only little over half of them are employees with a fixed income. Furthermore, lots of young people are streaming onto the job market, particularly in emerging markets. The World Bank assumes that a minimum of 600 million new jobs need to be created in the next 15 years. more
Some emerging markets and developing countries have seen rapid growth in the last few years. Consumption of resources continued to increase, and is endangering further development. Resource efficiency is therefore the order of the day and the potential is enormous. OeEB supports this goal. more