The Dutch Good Growth Fund (DGGF), a Netherlands-based loan fund that is funded with EUR 700 million (USD 947 million) from the Dutch Ministry of Foreign Affairs, has opened for business as of July 2014. The fund is managed by the Netherlands Enterprise Agency, a Dutch governmental agency charged with supporting “sustainable” and innovative entrepreneurship. DGGF aims to provide financing to Netherlands-based small and medium-sized enterprises (SMEs) that wish to invest in, or export to, 66 DGGF-identified developing countries, as well as directly financing SMEs in those countries. The 66 DGGF countries are mostly located in Africa and Asia. DGGF supports investments that promote “employment opportunities, expanding local production capacity and the transfer of knowledge” in developing countries [1].
In order to receive a loan from DGGF, an SME must submit an application that outlines how it will use the money in a way that contributes to the fund’s principles of expanding and improving employment and financial competency for smaller businesses in emerging markets [1][2].
By Benjamin Krupp, Research Associate
About Dutch Good Growth Fund (DGGF)
The Dutch Good Growth Find (DGGF) is a Netherlands-based loan fund that is funded by the Dutch Ministry of Foreign Affairs. Established in 2014, DGGF aims to provide financing to Dutch small and medium-sized enterprises (SMEs) that are interested in investing in, and exporting to, developing countries and also to SMEs in developing countries. As of 2014, the Ministry of Foreign Affairs has invested EUR 700 million (USD 947 million) in DGGF for the fund’s implementation.
About Ministry of Foreign Affairs of the Netherlands
The Ministry of Foreign Affairs of the Netherlands is a government body based in the Hague that is responsible for carrying out Dutch foreign policy and communicating with foreign governments and organizations. The ministry focuses on ‘international stability and security, energy and raw material security, the international legal order (including human rights) and the commercial and economic interests of the Netherlands and Dutch businesses’. The ministry’s budget for 2014 is unavailable.
Sources and Additional Resources
[1] Netherlands Enterprise Agency: Dutch Good Growth Fund (DGGF)
[2] Berenschot: Dutch Good Growth Fund (DGGF)
MicroCapital, March 18, 2014: Netherlands’ Facility for Sustainable Entrepreneurship and Food Security (FDOV), Ecom Agroindustrial, Utz Certified, AZMJ Support Small-scale Coffee Farmers in Colombia
MicroCapital, April 9, 2013: International Finance Corporation (IFC), Netherlands’ Ministry of Foreign Affairs Partner with Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER) of Nicaragua to Increase Financial Access for Micro, Small Entrepreneurs
MicroCapital, September 9, 2010: Dutch Government, Netherland Development Finance Company (FMO) Loan $15.5m to The Not One The Same (NOTS) Microfinance Fund
MicroCapital Universe Profile: Dutch Good Growth Fund (DGGF)
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