Investment fund local SMEs

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.

Do you meet the conditions? Do you think your project is eligible for DGGF Investment fund local SMEs? Then please fill in the online Quickscan - Intermediate financing of local SMEs.

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.

The DGGF works through a ‘fund of funds’ model, which consists of two distinct levels in the investment chain: 1. the DGGF invests in (mainly locally operating,  existing or new) funds and financial intermediaries, and 2. these financial intermediaries in turn offer a range of customized financing products to SMEs. The DGGF can also invest in funds that contribute to an improved ecosystem for SMEs. The DGGF does not, however, invest directly into SMEs.

Over a period of 4 to 5 years, the DGGF will build a diversified portfolio of investments, during which the fund will gradually grow to its full size of EUR 327.5m.

Overview current investments

Find an overview of selected intermediary funds at transactions Investment funds local SMEs

More information