PSI (previously PSOM) - investment projects

he Private Sector Investment programme (PSI) is the successor of PSOM (Programme Cooperation Emerging Markets) and provides 50-60% grant funding (subsidies) for investment projects that bring new economic development in 50 targeted countries. In case of 'tied' countries, a Dutch investor must be involved, whereas all other countries are 'untied' and therefore open to foreign investors from all countries. In each case local partners are required.

 

The project budget in most countries can be up to € 1.5 million of which 50% is grant-funded by PSI. For ten countries only (Afghanistan, Burundi, Democratic Republic Congo, Guatemala, Iraq, Palestinian Authorities, Pakistan, Sierra Leone, southern Sudan and Yemen) the subsidy is 60% under the PSI Plus facility. The balance has to be contributed by the project partners.

 

PSI is administered by NL Agency EVD Internationaal (EVD) and funded by the Government of the Netherlands from its Development Cooperation budget.

 

Advance Consulting has successfully developed some 200 PSI/PSOM projects in a wide range of countries and economic sectors, which is a truly outstanding track record. Please refer to the experience section of our website to read more about these projects. 

 

Which countries qualify?

 

Tied country list (only Dutch investors with local partner can apply)

Africa

Algeria, Cape Verde, Egypt, Kenya, Morocco, Nigeria, Tunisia

Asia

Indonesia, Jordan, Mongolia, Philippines, Sri Lanka, Thailand, Vietnam

Europe

Albania, Armenia, Bosnia and Herzegovina, Georgia, Kosovo, Macedonia, Moldova

Latin America

Colombia, Peru, Surinam

 

Untied PSI country list (any foreign investor with local partner can apply)

Africa

Angola, Benin, Burkina Faso, Djibouti, Ethiopia, Gambia, Ghana, Madagascar, Malawi, Mali, Mozambique, Rwanda, Senegal, South Africa, Sudan, Tanzania, Uganda, Zambia

Asia

Bangladesh, Cambodia, Laos, Nepal

Europe

n/a

Latin America

Bolivia, Nicaragua

 

Untied PSI Plus country list (60% subsidy)

Afghanistan, Burundi, Democratic Republic Congo, Guatemala, Iraq, Palestinian Authorities, Pakistan, Sierra Leone, South-Sudan, Yemen.

 

Who can apply?

In case of projects in countries on the 'tied' list, only companies registered in The Netherlands in consortium with a company registered in the country of investment (owners of those companies may be foreign) can apply for PSI grant funding. In case of projects in countries on the 'untied' list, any foreign company not registered in country of investment in consortium with a local company can apply. Both must have a strategic interest in the project, i.e. be somehow related to their core business. They must demonstrate capability to fund the own contribution of the project budget themselves. Other companies may be added to the project consortium.

 

Main requirements

  • The project budget is between € 0.3 million and €1.5 million. 
  • The strategic partners are able to fund 50% of the project budget themselves.
  • The project budget cannot include the purchase of land or investments already ongoing, nor can it include operational (recurrent) expenses such as local employees salaries etc. Typically 80% of the project budget is allocated to hardware and 20% to technical assistance (usually provided for the most part by the strategic partners themselves).
  • The project, if successful, has clear commercial potential, thus leading to a sustainable business and follow-on investment to expand the scale of or diversify the activity.
  • The (pilot) project is innovative for the region in which it is implemented, i.e. brings new economic development. It cannot be an expansion of an existing activity/capacity or a replication of what other companies in the region are already doing. It concerns either an entirely new business activity, or a significant improvement of an existing activity (for instance resulting in certification) or a diversification of an existing activity.
  • The project will lead to local development in terms of employment, income and know-how transfer.
     

More information about PSI can be found on the website of EVD. You can also view the PSI promotion video.

 

Please contact us for a free assessment to find out whether your business plan may qualify for PSI grant-funding.
Grants