By Witness Radio team.
The German KfW Development Bank, a global player in the field of international development cooperation, is in the spotlight over adverse effects and human rights violations/abuses against local and indigenous communities, Witness Radio has learnt.
Although the bank claims to be committed to the Sustainable Development Goals (SDGs), and to ‘only promote projects that do not harm the environment, the climate, and social issues at all’, a new report titled “KfW: Irresponsible Banking. The Hidden Harms of Germany’s Development Bank” by the Coalition for Human Rights in Development is about to reveal a very different reality. The report, a crucial tool for promoting accountability and achieving the SDGs, will be launched on Wednesday, September 10th.
Based on three case studies and an analysis of KfW’s policies, the report shows how projects financed by KfW are often imposed on communities without prior consultation. Those who raise concerns or resist frequently face intimidation, threats, or even violent attacks, leaving local communities in a state of distress.
“KfW calls it ‘responsible banking’, but it’s using German taxpayers’ money to bankroll projects that displace Indigenous Peoples, destroy ecosystems, and endanger human rights defenders. If KfW wants to demonstrate real responsibility, it needs to listen to local communities and ensure their voices are not silenced”, says Dalile Antunez, the report’s author and researcher at the Coalition for Human Rights in Development.
One example cited is the planned expansion of the Ulumbu Geothermal Power Plant in Poco Leok on Flores Island. KfW is financing the project of the Indonesian state-owned corporation Perusahaan Listrik Negara. “When members of the Pocoleok Indigenous community voiced their doubts towards the project concerning a lack of transparency and concerns about environmental and cultural impacts, they had to face violence and human rights violations,” Part of the press statement from the Coalition mentions.
In Topolobampo, located in the Sinaloa district in northwest Mexico, KfW is financing the construction of an ammonia plant to produce fertilizer by the Swiss company Proman Holding AG. According to the brief, local communities – namely members of the Mayo and Yoreme ethnic group are protesting against the project and have founded a collective called ¡Aquí no!.
Similar to the Indonesian example, the group criticises the lack of transparency and involvement of the local civilian population in the project’s approval and implementation, which directly impacts the lifestyles and ecosystem of the communities surrounding the coastal lagoon.
The last example is the Epanko Graphite Project, a graphite mine and downstream processing development in Tanzania, led by EcoGraf Limited, with a focus on producing high-purity, spherical graphite for the global lithium-ion battery and electric vehicle markets.
The upcoming report illustrates that, despite its “Responsible Banking” rhetoric, KfW is actually contributing to serious harm and failing to prevent or even address or remedy retaliation.
The online launch on September 10th will feature a panel discussion with Claudia Susana Quintero, a Mexican Indigenous woman human rights defender with extensive experience in community advocacy; Jimmy Ginting, an Indonesian human rights defender who has been at the forefront of environmental protection efforts; Pichamon Yeophantong, a member of the UN Working Group on Business and Human Rights with a deep understanding of the intersection between business and human rights; and Dalile Antunez, from the Coalition for Human Rights in Development, who has conducted extensive research on the topic.
Witness Radio will broadcast the launch live at exactly 3pm EAT. Don’t miss the discussions exposing irresponsible banking and its human cost.
Also, download the Witness Radio app from the Play Store to listen live and stay tuned for more programs and events.
