Update on the Dutch Good Growth Fund: First Intended Investments

17 March, 2015

The Dutch Good Growth Fund (DGGF) has been established in July 2014 with the aim to financially support both 1) Dutch entrepreneurs who do business in developing countries and 2) fund managers that help local Small and Medium sized (SME) companies/entrepreneurs in developing countries and emerging markets gain better access to finance.

Triple Jump provides an important update:

Overall interest in the DGGF has been substantial. For the track ‘Local SME Financing’ (financing local SMEs through Intermediary Funds) the consortium of PwC Advisory and Triple Jump has received over 130 investment proposals. Based on these received proposals, the consortium has made a first selection of Intermediary Funds (IFs).The diversity of these selected IFS is high, ranging from funds that invest in fragile states, to important sectors in sustainable development (such as health, education and energy).

Currently, the consortium is preparing its first investments in three different IFs:

  • The GroFin SGB Fund will provide long-term mezzanine financing for SMEs that are grossly underserved by other funds or financiers, with a focus on small enterprises that are locally owned and managed. This will mainly be start-up and growing businesses from different sectors (e.g. agriculture, health, education, energy, enterprise) in Africa. 
  • IFHA-II focuses on providing growth capital to private healthcare companies in Africa. IFHA-II will center its approach on development of well-defined healthcare segments in order to create sizable companies on a Pan-African scale through a “buy-and-build” strategy. 
  • Aavishkaar Frontier Fund (AFF) will offer equity and mezzanine financing to SMEs serving the low income population (as customers or utilizing them as producers) in India, Bangladesh, Sri-Lanka, Pakistan and Indonesia. The focus will be on the sectors: Affordable Healthcare & Education, Water & Sanitation, Food & Agriculture Services, Energy, and Technology for Development and Livelihoods.

For more information on these IFs, click here.

The DGGF is a programme of the Dutch Ministry of Foreign Affairs. It is administered by the Netherlands Enterprise Agency (RVO.nl), Atradius Dutch State Business (for Dutch SMEs) and a consortium of PwC and Triple Jump (for local SMEs). The DGGF is available in 68 emerging markets and developing countries. For more general info about the DGGF, click here. For more information about the track 'Investment funds local SMEs' (financing local SMEs through Intermediary Funds), click here.

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