Once again, a wide variety of commissioning parties entrusted GIZ with the implementation of their commissions in fiscal 2018. Our business volume increased by 17 per cent year on year to just under EUR 3 billion in 2018 (2017: EUR 2.6 billion).
BUSINESS VOLUME IN 2018
Around EUR 2.9 billion of the total business volume was generated by the public-benefit business area, in which the majority of GIZ’s work is commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and other German public sector clients.
The remaining EUR 109.3 million – an increase of 24 per cent against 2017 (EUR 88 million) – was attributable to the taxable business area, International Services. Through this business area, international institutions such as the European Union, the United Nations, governments worldwide, foundations and businesses with international operations commission GIZ directly.
WORKING WITH THIRD PARTIES
Together we can achieve more. Cooperation with companies, consulting institutions, appraisers and translators based on service contracts therefore continued to be an important instrument for the implementation of our commissions in 2018. The volume of contracts placed amounted to EUR 696 million overall, a 16 per cent rise compared with 2017. The volume of service contracts awarded by GIZ Head Office increased by 11 per cent to EUR 469 million. In the field structure, the number of contracts with service providers increased by a quarter against the previous year to a total volume of EUR 227 million.
MORE FUNDING ACQUIRED THROUGH COMPETITIONS
GIZ is increasingly acquiring funding through ideas competitions, in which it competes with other public and public-benefit institutions. One example is funding from BMZ’s special initiatives, with which the ministry sets precise development priorities that allow it to respond to specific challenges. In the last three years, income generated in this way has more than tripled, from EUR 94 million to EUR 301 million. GIZ is also implementing the Special Initiative on Training and Job Creation, which was announced in 2018.
GIZ’s value as an implementing organisation for many commissioning parties is also reflected in the steady rise in cofinancing in recent years. Cofinancing describes a situation in which third parties such as the European Union, UN organisations or private enterprises provide additional funding for measures carried out by GIZ on behalf of BMZ or other German public sector clients, or where they partially or fully fund a component of the measure. In fiscal 2018, cofinancing accounted for EUR 435 million of GIZ’s total income, a year-on-year increase of around 11 per cent. Cofinancing for German public sector client projects alone doubled against the previous year, increasing from EUR 25 million to EUR 53 million. The largest cofinancier, with income of EUR 309 million (2017: EUR 245 million), was the European Union.
GERMAN PUBLIC SECTOR CLIENTS
As at 31 December 2018
|Income in EUR million*||2017||2018|
|Federal Ministry for the Environment, Nature Conservation and Nuclear Safety||134||147|
|Federal Foreign Office||108||111|
|Federal Ministry for Economic Affairs and Energy||27||30|
|Federal Ministry of the Interior, Building and Community||13||14|
|Other federal ministries||7||8|
|Federal Ministry of Defence||4||8|
|EU twinning agreement***||7||3|
|Federal Ministry of Food and Agriculture||5||3|
|Federal Ministry of Finance||1||1|