By doing business in developing countries and emerging markets, entrepreneurs contribute to economic and social improvements within these countries. The Dutch Ministry of Foreign Affairs encourages these developments and offers friendly financing arrangements via the Dutch Good Growth Fund (DGGF) that can help you! Depending on your specific financing need, DGGF offers several possibilities.
Do you want to invest in one of the DGGF countries but are you unable to get financing from your bank? Through Invest International you can apply for an investment of up to €15 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 on DGGF.nl
By doing business in developing countries and emerging markets, entrepreneurs contribute to economic and social improvements in these countries. The Dutch Good Growth Fund is available for the countries that are listed on the DGGF Country List.
Do you want to export capital goods to one or more of the DGGF countries? Invest International and/or Atradius Dutch State Business might be able to help you. The following possibilities exist:
DGGF provides export credit insurance and export financing to exporters of capital goods. You can insure transactions up to €30 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 an option if your bank does not provide financial support for an export transaction. More information on DGGF.nl
Do you export consumer or other goods to developing countries or upcoming markets? Do you want to expand your business, but are unable to get funding from your bank? The Exporting Dutch entrepreneurs track supports Dutch export companies with guarantees and loans of up to a maximum of €15 million.
You can get financing to export goods to your local buyer. More information on DGGF.nl
Do you import goods from a developing country or upcoming market? Are you looking to expand, but are unable to get finance from a bank? Supply Chain Finance supports import by Dutch entrepreneurs with guarantees and loans up to a maximum of € 15 million.
You can get a loan for the purchase of goods from your local supplier. Under specific conditions, you can also get finance to help your local supplier in a DGGF country grow. Read more about Supply Chain Finance on DGGF.nl.
Local 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.
DGGF has set specific targets for intermediary funds that invest in young or female entrepreneurs and entrepreneurs in fragile states.