Private Sector Development tools

A brief overview of Dutch support to promote bilateral trade & cooperation

Frank Buizer

Netherlands Enterprise Agency (RVO)

October 2016

frank.buizer@rvo.nl

+31 88 602 1662

+31 6 1172 5239

Agenda

• RVO Netherlands Enterprise Agency

(http://english.rvo.nl/)

• RVO instruments

- PSD Apps

- CBI interventions

- Funding

RVO

• Part of Min. Economic Affairs but assignments from several ministries

• Scope (stimulating international, agricultural, innovative and sustainable business)

• Activities (advice, funding, matchmaking, projects, events)

• Around 3000 people workforce, several offices in NL and abroad

Dutch aid, trade and investment policy • Eradicate extreme poverty within one generation = aid

• Sustainable and inclusive economic growth worldwide = aid & trade

• Success for Dutch companies abroad = trade

• Inclusive economic growth: focus on youth, women

• Corperate Social Responsibility

PSD Apps / PSD Coach

• Studies/seminars

• Knowledge transfer

• Trade missions/study visits

• Matchmaking

• Management training program

• Impact clusters

Studies, seminars

• Market research

• Needs assessments

• Scoping study

• Follow up activities

Goal

• Bilateral cooperation between foreign and Dutch knowledge institute

Programme

• Training • Development of curricula • Exchange students / teachers • Joint research projects

Knowledge transfer

Trade Missions/study visits

Establish joint business relationships

Networking

Transferring knowledge

Tailor-made matchmaking in the Netherlands between foreign and Dutch companies and organizations.

Aim: establish business relationships. PUM cooperation

Locally owned Registered at least 2 years

Solid financial base

> 10 employees Solid business

plan

Matchmaking

Management Training Program

Goal

• Strengthening economic relations between Dutch companies and companies from Zimbabwe/other countries

Programme

• 5 days training • 2 weeks traineeship in

NL • 10 candidates • One specific theme or

sector

Participant

• 3 years management or entrepreneurial experience

Impact cluster

Incidental subsidy for Dutch consortia in emerging markets that want to enter new markets and want to invest in developing these markets by setting up and working on:

• Demonstration projects

• Knowledge transfer

• Capacity building

• Missions

• Traineeships

• Studies

• etc

11

Examples PSD Apps Zimbabwe

• Market studies and seminars

• Female entrepreneurs training and mission

• Individual matchmaking visit programs

• Exploration development horticulture sector

• Drinking water projects

CBI Interventions: export capacity building (www.cbi.eu)

• Training

• Strategic conferences

• Tailored intelligence

• BSO development

• Value chain analysis

Funding

14

Goal: export and investment support for SMEs and PPPs in emerging markets. Funding options:

• DHI (demonstration, feasibility and investment preparation study), for Dutch companies

• Dutch Good Growth Fund (revolving fund for investment and export)

• PPPs: Facility for Sustainable Entrepreneurship and Food Security (FDOV) Facility for Water Security (FDW)

DHI; Demonstration project subsidy

• Demonstration of Dutch technology to demonstrate that it works in the local context and has added value.

• Export potential (within 3 years) should be at least 10 times the subsidy amount.

• Subsidy for both the hardware and hours.

• Max. subsidy EUR 200.000,- per project (50%)

• Demonstration is focused on several parties

• Small scale and short term

DHI: Feasibility study

• Study on technical and financial feasibility of intended investment in Dutch capital goods by potential customer in Zimbabwe.

• Market research does not qualify

• Letter of intent needed from potential customer

• Result: Project design and investment plan based on which the customer can take the investment decision

• Export potential (within 3 years) should be at least 10 times the subsidy amount.

• Max. subsidy EUR 100.000,- per project (50%)

DHI: Investment preparation study

• Study on technical and financial feasibility of intended investment of a Dutch company in Zimbabwe.

• Investment is in line with activities of the company based in the Netherlands and will strengthen the mother company

• Result: business plan/investment plan for making the investment decision and obtaining finance

• Investment contributes to local development

• Max. subsidy EUR 100.000,- per project (50%)

DGGF Providing finance and insurance for development related trade and investment

Dutch SMEs • Financing investments by Dutch SMEs , managed by

RVO

• Providing credit insurance and trade finance for (Dutch) SME exports, managed by Atradius

Local SMEs Through financing intermediary investment funds

(Grofin for Zambia), managed by PricewaterhouseCoopers and Triple Jump Bank

• Support innovative and sustainable initiatives

• Development relevancy (local employment, knowledge transfer, local production capacity)

DGGF for Local SMEs

• DGGF does not invest directly in local individual SMEs

• Supports innovative and sustainable financing initiatives

through (Dutch and local) intermediary funds.

• Intermediary Funds will in turn finance local SMEs (e.g.

Grofin)

• Selected Intermediary Funds are published on www.dggf.nl

Public-private partnerships Facility for Sustainable Entrepreneurship and Food Security (FDOV) Facility for Water Security (FDW)

20

• 1 running project Zimbabwe and open for Zambia

• Encourages PPPs (private sector, NGO, knowledge institute, government)

• To stimulate innovative and sustainable development in emerging markets

• Improve the food security situation

• Improve access, efficient use of water

• Strengthen the private sector

Questions & remarks

21