Are you doing business in an emerging market or a developing country? Or do you represent an investment fund that invests in businesses in such countries? Are you in need of assistance when it comes to arranging funding? By doing business in developing countries and emerging markets, entrepreneurs contribute to economic and social improvements in these countries. The Ministry of Foreign Affairs encourages these developments and DGGF can help you! This page provides you with the possibilities that DGGF offers.
Investing Dutch SMEs
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.
Do you want to invest in one of the DGGF countries but are you unable to get financing from your bank? You can apply at the Netherlands Enterprise Agency (RVO.nl) for an investment up to €10 million. DGGF supplements private investments by means of guarantees and direct financing with a repayment obligation, such as loans and equity investments in projects. More information about Investing Dutch SMEs?
Exporting Dutch SMEs
Do you want to export capital goods to one or more of the DGGF countries? The DGGF provides export credit insurance and export financing. You can insure transactions up to €15 million worth with the DGGF to cover the cost of manufacture and payment risks when exporting capital goods. You can take out this insurance at Atradius Dutch State Business.
You may also be eligible for up to €5 million in suppliers' credit to customers in one the DGGF-countries This is a possibility if your bank does not provide financial support for an export transaction. More information about Exporting Dutch SMEs?
Intermediate financing of local SMEs
Small businesses find it difficult to get the financing they need. This means it is difficult to grow. This group is called the missing middle. These businesses have outgrown microfinancing but do not yet have access to regular financial services.
DGGF wants to expand financing opportunities for this so-called missing middle. Not by investing directly in local SMEs, this is much too difficult. To increase local SMEs’ access to finance, the DGGF 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. More information about Intermediate financing of local SMEs?