The 2030 Agenda emphasises that development can only succeed if countries can mobilise their own resources and strengthen local economic opportunities. SDG 8 underlines the key importance of income as the basis for economic participation and social progress. When disposable income increases, people gain financial security and have more freedom to act. They can invest more in education, health and their future, and become more economically resilient. This is an important step towards self-determined development.
Companies make a direct contribution by employing local staff, paying taxes and duties locally and sourcing goods and services from local suppliers (providing an indirect contribution to local income). These activities strengthen purchasing power, local value creation and economic stability, particularly in countries facing structural labour market and productivity challenges.
More information can be found in the DEG study Unlocking the benefits of local sourcing for companies and society [2018].
DEG’s direct customers generated local income of around EUR 37 billion in 2025 (EUR 18.4 billion in local wages and salaries, EUR 5.2 billion in corporate taxes and EUR 13.2 billion in local profits after taxes).
A further EUR 148 billion in local income was generated through the business activities of fund investees.
Direct customers also generate additional added value across their entire supply chain, through their investments and in their sourcing of local goods and services. This indirect contribution to local income amounted to EUR 239 billion.
Long-term loan for major employer with a significant local impact
Name: FirstRand Bank
Invested volume (in USD): 100 million
Country: South Africa
DERa category: Local income
FirstRand Bank in South Africa is one of the country's largest employers, generating local income to a significant extent. In addition to employees’ wages and salaries, this includes the payment of taxes, concessions and licences, as well as the purchase of goods from local suppliers and the boost to local purchasing power.
FirstRand Bank and DEG have been collaborating for more than two decades. The most recent financing is a syndicated loan of USD 300 million to finance investments in renewable energies and to support German companies. DEG’s share of the loan amounts to USD 100 million, making this the largest syndication in DEG’s history to date.
But the partnership goes far beyond financing: FirstRand Bank also draws on the expertise and advisory services of DEG and its subsidiary DEG, to build up expertise in renewable energy during implementation of South Africa’s Just Energy Transition Investment Plan and for developing Environmental Impact Bonds, for example to protect animal species or water resources.
The investment contributes to SDGs 8, 9 and 13.
