Dutch Good Growth Fund: Financing for Development
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1. Introduction DGGF
Top priority in new Aid and Trade agenda
-
SME’s vital for job growth and economic development
-
But SME’s face financing difficulties (both in Europe and emerging
markets)
-
DGGF Aims to alleviate shortage of capital availability for SME’s
18-9-2024
2. Dutch Good Growth Fund
The DGGF (€700 million in total) is a
revolving fund
which offers
tailored
funding arrangements for entrepreneurs (particularly
small
and medium-sized
enterprises) that have solid business or
investment plans and relevance to development, and whose
business practices are
sustainable
and
socially
responsible
.
Investmentcapital of
700 million
:
Year
2014
2015
2016
2017
Investmentcapital
50
100
250
300
Technical assistance: €70 mln (2014-2017)
DGGF country classification = PSD country classification
3
Financing will be available for:
1.
Dutch SME’s wishing to invest in low- or middle-income
countries;
2.
Intermediaries who focus on SME financing in low- and middle-
income countries
3.
Dutch SME’s aiming to export to low- and middle-income
countries.
4
Track 1:
Dutch SME’s wishing to invest in
DGGF countries
•
Fundmanager:
RVO
•
Target group: NL SME’s
•
Investments up to
€10 mln
in the 66 DGGF countries
•
Tailormade financing;
•
Guarantees, loans, equity
•
Cooperation with local banks, NGO’s en Investment funds
•
Budget: €175 mln
•
Technical Assistence: €18 mln (2014-2017)
5
Track 2:
Intermediaries who focus on SME
financing in low- and middle-income countries
•
Target group: SME’s in DGGF countries
•
Fundmanager: Currently in a European tender procedure
(contract
10-15 year)
•
Fund of Fund
•
Focus
: 50% LICs, 15% Fragile/women/young
entrepreneurs
•
Additionally
•
Seed Capital & Business Development budget: €26 mln (2014-
2017)
•
Investment capital: €175 mln (2014-2017)
6
Track3:
Dutch SME’s aiming to export to low-
and middle-income countries
•
Fundmanager:
Atradius DSB
•
Target group: NL/ Local SME’s
•
Transactions up to
€15 mln
•
Exportcredit insurance
•
Direct financing
•
Budget: €175 mln
•
Technical Assistence: €9 mln (2014-2017)
7
3. Criteria
•
Each DGGF transaction will contribute to Development:
•
jobs
•
productivity
•
knowledge
•
Special care for Fragile/women/young
entrepreneurs
•
CSR(OECD Guidelines/ IFC Performance Standards)
8
The end
18 september 2024
DIO-staf
9
Dutch Good Growth Fund (DGGF) is a €700 million revolving fund that provides tailored funding for sustainable and socially responsible small and medium-sized enterprises (SMEs) in low- and middle-income countries. It aims to address the financing challenges faced by SMEs, offering various financial instruments and support to promote job growth and economic development. Financing opportunities are available for Dutch SMEs investing in DGGF countries, intermediaries focusing on SME financing, and Dutch SMEs exporting to these countries. The fund is managed through different tracks targeting specific sectors and facilitating investments and partnerships to foster sustainable business practices and development.
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Presentation Transcript
Dutch Good Growth Fund Finance for development 1
1. Introduction DGGF Top priority in new Aid and Trade agenda - SME s vital for job growth and economic development - But SME s face financing difficulties (both in Europe and emerging markets) - DGGF Aims to alleviate shortage of capital availability for SME s 2 18-9-2024
2. Dutch Good Growth Fund The DGGF ( 700 million in total) is a revolving fund which offers tailored funding arrangements for entrepreneurs (particularly small and medium-sized enterprises) that have solid business or investment plans and relevance to development, and whose business practices are sustainable and socially responsible. Investmentcapital of 700 million: Year Investmentcapital 2014 50 2015 100 2016 250 2017 300 Technical assistance: 70 mln (2014-2017) DGGF country classification = PSD country classification 3
Financing will be available for: 1. Dutch SME s wishing to invest in low- or middle-income countries; 2. Intermediaries who focus on SME financing in low- and middle- income countries 3. Dutch SME s aiming to export to low- and middle-income countries. 4
Track 1: Dutch SMEs wishing to invest in DGGF countries Fundmanager: RVO Target group: NL SME s Investments up to 10 mln in the 66 DGGF countries Tailormade financing; Guarantees, loans, equity Cooperation with local banks, NGO s en Investment funds Budget: 175 mln Technical Assistence: 18 mln (2014-2017) 5
Track 2: Intermediaries who focus on SME financing in low- and middle-income countries Target group: SME s in DGGF countries Fundmanager: Currently in a European tender procedure (contract 10-15 year) Fund of Fund Focus: 50% LICs, 15% Fragile/women/young entrepreneurs Additionally Seed Capital & Business Development budget: 26 mln (2014- 2017) Investment capital: 175 mln (2014-2017) 6
Track3: Dutch SMEs aiming to export to low- and middle-income countries Fundmanager: Atradius DSB Target group: NL/ Local SME s Transactions up to 15 mln Exportcredit insurance Direct financing Budget: 175 mln Technical Assistence: 9 mln (2014-2017) 7
3. Criteria Each DGGF transaction will contribute to Development: jobs productivity knowledge Special care for Fragile/women/young entrepreneurs CSR(OECD Guidelines/ IFC Performance Standards) 8
The end 9 DIO-staf 18 september 2024
