Deutsche Bank‘s Community Development Finance Group continued to be a pioneering force in 2008 in directing capital in the form of loans, investments, and grants to create new opportunities for people and places most in need – from major cities in the U.S. to rural villages in Africa.

More than US$ 64 million in project financing helped to regenerate urban communities while providing housing for the homeless, jobs for the unemployed, and special services for the disabled. Microfinance activities grew to include financings for 19 additional microfinance institutions in 14 countries, helping to reach the poor in all regions of the world with access to credit for self-employment. The total microfinance portfolio includes four funds under management with a total of US$ 165 million invested in about 100 commercially sustainable, socially focused institutions in 41 countries. The year 2008 also resulted in mission-driven loans to several social ventures: low-cost private schools for poor children in Africa; solar lighting in rural regions of Nepal; and a fisheries project in post-Katrina Louisiana to help restore the viability of small businesses nearly destroyed by the hurricanes of more than two years ago.

What we have learned

Mission-driven investing in social development is growing as a new asset class for both individual and institutional investors.

The sector is maturing with new social enterprises that adapt market strategies to realize social and environmental objectives without reliance on constant subsidy in the form of charity.

Our goals for the future

In 2009, we see the economic crises affecting our traditional social enterprise partners as they redefine their business plans and growth trajectories in response to the lack of liquidity in all capital markets. We remain committed to helping our clients manage these balance sheet challenges as demand for their work is only likely to grow while circumstances for the poor are likely to worsen.

More positively, we recognize new growth opportunities in helping poor rural communities develop new sources of alternative energy production, and in our cities in helping to organize new funds to undertake the massive demand to retrofit existing buildings to lower carbon emissions and energy costs for low-income residents. In the poor countries of the world, we will extend our support for children and aid orphans, and in our home German market, we will strengthen our cooperation with the SOS Children’s Villages and the “Future for Children” initiative.