Dutch programmes for private sector development
The Ministry of Foreign Affairs and the Ministry of Economic Affairs collaborate closely in promoting enterprise. The Netherlands Enterprise Agency (RVO.nl) encourages entrepreneurs in sustainable, agrarian, innovative and international business. It helps with grants, finding business partners, know-how and compliance with laws and regulations. Key results of programmes for development cooperation managed by The Netherlands Enterprise Agency in 2016 were the number of direct jobs supported in enterprises in low and middle income countries, the number of companies with supported plans to invest or trade and related private co-investment in these developing countries. These aggregated results, including a detailed explanation, of development aid projects executed by the Netherlands Enterprise Agency can be found on the IATI aiddata website.
Private sector development programmes
The following private sector development programmes are (partly) run by the Netherlands Enterprise Agency (RVO.nl):
Dutch Good Growth Fund (DGGF)
The DGGF plays a key role in supporting trade and investment by SMEs in developing countries, and by Dutch companies wanting to invest there. The fund promotes economic activity and creates opportunities that allow everyone to participate fully in the economy and in society. There are three parts to the DGGF:
- credit for Dutch SMEs wanting to invest in selected countries;
- export credit insurance for Dutch SMEs;
- an investment fund for SMEs in developing countries.
The DGGF is a revolving fund. The money it lends is paid back and then loaned out again. Every loan proposal must be relevant to development.
Development Related Infrastructure Investment Vehicle (DRIVE)
Good infrastructure is vital for the functioning of an economy. It is difficult for manufacturers to produce without a reliable electricity supply. Poor infrastructure makes it difficult or impossible for people to trade their products on local or even international markets, or to commute to work. This slows economic growth. Often, countries do not have sufficient financial resources to build the required infrastructure. The least developed countries also lack the capacity and resources to develop projects. The DRIVE programme was established to bridge this funding gap. The programme enables companies to include a more attractive and efficient financing plan when tendering for infrastructure projects
in developing countries.
Facility for Sustainable Entrepreneurship and Food Security (FDOV)
FDOV encourages public-private partnerships in the fields of food security and private sector development in developing countries. To qualify for support, projects must be aimed at making markets more efficient and production chains more sustainable. They must also have demonstrable positive effects for low-income groups and women. Women entrepreneurs will be given priority.