Intermediate financing of local SMEs
The ongoing COVID-19 pandemic has brought considerable disruption to emerging markets and developing countries on every continent. The Dutch Good Growth Fund is using this time to work closely with our current investee funds and financial institutions, to provide assistance where possible to help them navigate this difficult economic period, and to assess the longer term impacts for the whole portfolio.
Throughout this period the applications process to DGGF remains open. We ask all applicants to please keep in mind that the current economic uncertainty may cause some delays to decision making with regards to their proposals, but all proposals will continue to be thoroughly assessed by our investment team.
Through investment and client support, the Dutch Good Growth Fund remains committed to the long-term goal of boosting the finance ecosystems for missing middle SMEs in our target countries.
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The DGGF aims to reach out to underserved markets, foster innovative financing products and invest in specific target groups (young and female entrepreneurs and entrepreneurs in fragile states that face high barriers to attracting capital). By doing so, the DGGF contributes to knowledge transfer, increased employment and production capacity and thereby becomes a driver of economic growth.
Intermediary investment funds for local SMEs
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. DGGF ultimately aims to improve access to finance for the 'missing middle' - businesses that have outgrown microfinancing but do not yet have access to regular financial services.
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 intermediary funds for local SMEs.
Seed Capital & Business Development
The purpose of the Seed Capital and Business Development (SC&BD) programme is to further the impact of the DGGF part Investment funds local SMEs. The SC&BD programme focuses on SME finance initiatives that are of strategic interest for the DGGF, but too young, small or risky for an investment to form part of the DGGF investment portfolio, and can hence apply for support from seed capital. In addition, the SC&BD facility offers Technical Assistance and Business Development Services to DGGF clients. More information about the SC&BD programme.
Enabling entrepreneurship in frontier markets
DGGF – Financing Local SMEs – applies a unique ecosystem approach, which combines investments with capacity building and ecosystem support initiatives to support local entrepreneurs. In the last five years, DGGF – Financing local SMEs - has been able to create a positive impact in 60 countries by, amongst others, supporting 33,316 jobs and financing more than 4,500 SMEs through its support to local finance providers.
Do you want to know more about how DGGF’s unique approach is creating local impact?
You can read various inspiring case stories of entrepreneurs that were able to succeed thanks to the support of DGGF’s investment in our impact report 'Enabling entrepreneurship in frontier markets'.