On behalf of the Federal Government, KfW carries out Financial Cooperation (FC), one of the most important instruments of German bilateral cooperation. With FC, KfW contributes to reducing poverty and to ensuring that globalization affords opportunities for everyone, to protecting the climate and conserving natural resources and to safeguarding peace. Their engagement adheres to the guidelines of the Federal Government which has made international commitments to help achieve the UN Millennium Development Goals and climate protection targets and to improve aid effectiveness.
In keeping with the needs and development strategies of the partner countries, KfW provides finance, advice and support for development and climate protection projects and programmes worldwide. The foremost concern in cooperation is to achieve sustainable impacts. Strengthening the initiative, ownership and capacities of their partners is a major success factor. An institution in the partner country is therefore always assigned responsibility for planning and implementing a project or programme. These are largely government bodies, but sometimes also private enterprises or non-governmental organizations.