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Policy & Portfolio Analysis

Peer Review on Policy-based Financing in Development Banks

On behalf of KfW, we conducted a peer review to compile and analyse lessons learnt from policy-based financing (PBF) operations of five development banks: AfDB, ADB, AFD, IDB, and the World Bank. The review focused on the sectoral and thematic orientation of PBF portfolios, the types of reforms supported, and the design of disbursement triggers.
Our work included a quantitative portfolio analysis, examination of policy matrices, and interviews with representatives of the peer institutions. Findings were synthesised into a comprehensive report and presentation, outlining global trends and lessons for KfW’s own engagement in policy-based financing.

Financing Food Systems Transformation

Bank and the sustainability think tank TMG to develop a comprehensive conceptual and financial cooperation framework for Food Systems Transformation (FST). The project aims to guide KfW’s strategic engagement within German Development Cooperation and with international partners, helping translate the complex FST agenda into actionable implementation pathways.

Funded by the BMZ the project combines research, peer learning, and strategic design. It began with a kick-off workshop in Rome, followed by a literature and discourse analysis, peer review of 24 organizations -including MDBs, PDBs, private banks, NGOs, and philanthropic actors -and the co-creation of a Financial Cooperation Concept for FST.

To ensure practical applicability, Guidance Documents were developed to support KfW in identifying financing partners, investment opportunities, and instruments for systemic change. These include analyses on potential partners for FST and on investing in land rights as a foundation for transformation. The findings inform both KfW’s FZ Future Process and BMZ’s broader reform agenda, contributing to a stronger, more coherent approach to financing sustainable food systems.

Conceptual Study on Results-based Financing Approaches

To support the expansion of its financial instruments, KfW commissioned a study on results-based financing (RBF) policies and practices of bi- and multilateral development partners. The study examined institutional contexts, design features, appraisal mechanisms, and lessons learnt from existing RBF approaches, where payments are contingent upon verified results rather than inputs or activities.

Our work included analysing donor experiences and guidelines, mapping funders of RBF projects, and compiling findings into a report. The study provided KfW with a structured overview of existing approaches and operational practices to inform future application of results-based financing.

You can read the study here.

Integrating Gender Equality in Development Cooperation

We work with development cooperation actors to systematically integrate gender equality across sectors, instruments, and regions. Our work spans conceptual studies, tool development, and gender analyses at project and institutional levels—combining sector expertise with participatory approaches to translate feminist development policy into action.

Sectoral Experience

We have developed practical tools and analyses to strengthen gender equality in key sectors:

  • Energy, WASH & TVET: Fact sheets, guidelines, and tools supporting gender-responsive project design, indicator refinement, and expert selection.
  • Financial Sector: A comprehensive toolbox for gender-responsive approaches with financial intermediaries, featuring frameworks, good practice examples, and interactive guidance for portfolio managers.

Country Examples

  • Senegal: Gender analysis of a solar energy project in the Iles-de-Saloum region, assessing impacts on women and developing recommendations to enhance social and economic benefits through targeted measures and improved M&E. Gender-sensitive indicators were created to track progress on women’s empowerment.
  • Egypt: Study on gender equality in the energy sector, focusing on women’s participation in technical and leadership roles at EEHC and EETC. The study included extensive stakeholder consultations and produced actionable strategies for gender-inclusive policies and stronger female representation.
  • Morocco: Multisectoral gender assessment across the financial, energy, water, agriculture, and mobility sectors, identifying cross-sector opportunities to strengthen gender integration in KfW’s portfolio.

Developing and Environmental and Social Management Framework (ESMF) for a Refugee Fund in Uganda

For Uganda’s Refugee Response Fund, we designed an Environmental and Social Management Framework to ensure compliance with international standards. This included safeguard plans for pilot projects and a land acquisition framework.

Working with local experts, we conducted field visits, stakeholder consultations, and training workshops to build capacity and ensure risks were managed inclusively and sustainably. The Fund now integrates strong environmental and social safeguards into its operations.

Developing an SDG contribution tool: Analysing the Impact of a Project Portfolio in Albania

To strengthen impact assessment, we developed a tool for estimating development portfolios’ contributions to the SDGs. The tool quantifies expected results, compares them with DAC evaluation criteria, and provides structured guidance for strategic planning.

We piloted the tool with the German Development Cooperation portfolio in Albania, validating results with experts and refining the methodology. This approach offers practitioners a practical way to align portfolios with the SDGs and improve evidence-based programming.

Strengthening Sustainability in BMW’s Supply Chain in Bangladesh

BMW sought to improve transparency and sustainability in its Kenaf supply chain in Bangladesh. We assessed risks and opportunities through field research, value chain analysis, and stakeholder consultations.

Our findings informed a project proposal addressing sustainable farming practices, traceability, and fair income distribution. Implemented later by GIZ, the initiative has since improved farmer livelihoods and enhanced supply chain sustainability.

Innovative approaches for skills development and employment promotion for Africa

To support sustainable employment creation across Africa, we worked with our client to identify effective strategies for promoting not only more jobs, but better jobs. In a context of rapid population growth and shifting economic dynamics, we analysed regional trends and development challenges to provide strategic guidance on employment promotion. Our approach emphasised that valuable jobs are productive, safe, inclusive, and provide the basis for decent livelihoods.

Building on this analysis, we evaluated a range of project approaches to strengthen employment systems and job quality. These included policy-based operations to improve the framework conditions for jobs, initiatives that foster private sector innovation and SME development, and support for industrial zones as drivers of regional growth. We also explored opportunities in emerging labour-intensive sectors, such as the “green” construction industry, linking employment promotion to sustainability and long-term competitiveness.