Many small and medium-sized enterprises in developing countries have difficulty securing the financial backing they need to grow.
This group of businesses is often referred to as ‘the missing middle’: they have outgrown micro financing but do not yet have access to regular financial services.
To increase local SMEs’ access to finance, the DGGF part Investment funds for local SMEs invests in funds which in turn invest in businesses in the DGGF countries. The DGGF enlarges its impact by investing in intermediary funds that are better placed to reach local SMEs. This part of the DGGF is a 'fund of funds': it is building up a portfolio of intermediary funds that are catalysts for local economic growth. Greater access to finance enables local SMEs to grow and strengthens the financial sector in low- and middle-income countries. The DGGF has set specific targets for intermediary funds that invest in young or female entrepreneurs and entrepreneurs in fragile states.
Find an overview of selected intermediairy funds at Transactions Investment funds local SMEs.
SuperReturn Emerging Markets 2016 conference
Triple Jump, represented by the DGGF Investment and SC&BD teams, attended the SuperReturn Emerging Markets 2016 conference held in Amsterdam from June 27th to June 29th. The conference provided a platform for investors and fund managers to meet and exchange ideas. The conference explored various themes including the opportunities and pitfalls of investing in emerging and frontier markets, investors selection criteria and the operating challenges general partners are facing from recruiting local talent to incorporating ESG practices at the investee level. The DGGF Investment team participated in two panels at the conference and explained the various aspects of the DGGF mandate. Read more