Dutch Good Growth Fund (DGGF)
The new Dutch Good Growth Fund (DGGF) started operations from July 1st, 2014. The DGGF offers entrepreneurs alternative financing for international projects in countries in Africa, Latin America, Asia and Eastern Europe.
The purpose of the fund is to stimulate development through trade and investments in emerging markets and developing countries. The DGGF is a revolving fund of a total of €750 million and is intended for:
- Dutch small and medium-sized businesses (SMEs) that want to invest in and/or export to one of the countries included in the DGGF country list;
- Local small and medium-sized businesses in one of the countries included in the DGGF country list.
Dutch SMEs may apply for up to € 10 million in funding if they plan to invest in one of the DGGF countries but are unable to obtain 100% of their investment need from their own bank. The DGGF supplements private investments by means of guarantees and direct co-financing with a repayment obligation, such as debt financing.
Local companies (SME) in low and middle-income countries can apply for intermediary funds that are aimed at developing the SME financing segment. This part of the DGGF is managed by a consortium of PwC and Triple Jump.
Export credit insurance and finance for exports: Dutch SMEs and their banks that provide export finance can obtain insurance coverage from Atradius Dutch State Business, for an amount upto € 15 million to cover the payment risk associated with the export of capital goods. Entrepeneurs may also be eligible for financing upto € 2 million for buyers in low- and middle income countries who are unable to obtain financing from their own bank for the export transaction.
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