Private sector investment can promote employment, production capacity and knowledge transfer in developing countries and emerging markets. This was the reason for launching the Dutch Good Growth Fund in 2014.
Entrepreneurs doing business in emerging markets and developing countries, often have a great contribution to economic and social improvements in these countries. The Ministry of Foreign Affairs encourages this. Projects in these countries, however, often have such a high risk that banks are reluctant to finance them. This is particularly true of projects proposed by small and medium-sized enterprises (SMEs). The Netherlands has many SMEs that want to invest in or export to emerging markets and developing countries. They often have good, high-quality initiatives that would be of great local benefit. Therefore, the Dutch Good Growth Fund (DGGF) supports Dutch SMEs doing business with developing countries and emerging markets with customized services.
Do you want to invest in one of the DGGF countries but are you unable to get financing from your bank? The DGGF supplements private investments by means of guarantees and direct financing with a repayment obligation, such as loans and equity investments in projects.
Do you want to export capital goods to one or more of the DGGF countries? The DGGF support export initiatives by providing export credit insurance and export financing.
Intermediate financing of local SMEs
Are you raising an investment fund that aims to improve local SMEs’ access to finance? DGGF encourages you to share your innovative initiatives.
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. The DGGF would like to increase financing opportunities for this group. Direct investments are not realistic due to great fysical distances. However, by investing in intermediaire funds, that in turn invest in local SMEs in the DGGF countries, DGGF can contribute to increasing access to finance for local entrepreneurs.