Fund for Export and Investments in Emerging Markets – Dutch Good Growth Fund (DGGF)

Are you a Dutch SME and struggling to finance your export or investment project in an emerging market or developing country? The Dutch government offers a solution through the 700 MN euro Dutch Good Growth Fund. Larive International can help you prepare and apply for financing in order to secure your export order or realize your investment.

How does it work?

1) Export: credit insurance and financing.

Your potential customer in an emerging market requests to pay in installments. However, you prefer not to pre-finance the delivery yourself or limit your credit space with your bank. In order to still be able to make a competitive offer, DGGF offers the following options:

• Export financing and supplier credit. You will be paid on delivery. Your customer has a maximum of 60 months to repay his investment from the generated cash flow.
• Cover payment risks of up to 30 million euros (insurance compensation).
• Covering (down payment) guarantees.
• Coverage for banks that (pre) finance your exports.

2) Investing: guarantees, loans and participations.

You want to invest in an emerging market. However, your bank thinks the risks are too high. To realize your investment plans, DGGF offers the following options:

• Guarantee coverage of 60-80 percent of the loan that your bank provides.
• Competitive loans for up to 49 percent of the financing or a participation up to 15 million euros.
• Loans to private equity funds that are used to invest in your company.

Main conditions:

• Investment in one of the 72 DGGF countries (country list).
• Own contribution at least 20 percent. Minimum funding 100,000 euros, maximum 15 million euros.
• Co-financing of commercial financiers.

3) Importing: guarantees and loans

Your local supplier needs pre-financing or support in their growth, such as local farmers that need to expand, e.g. buy more farmland or machinery, to keep up with you demand. Your local investment is relevant for development and contributes to local growth in a number of ways such as employment, technological innovation, or lasting transfer of knowledge and skill. DGGF offers the following financing options:

• Guarantees to banks to diminish unexpected losses. DGGF will cover 60-80% of the risk involved.
• Direct loans up to € 15 MN over a period up to 15 years.

Track record Larive International.

Examples of companies we have helped with a DGGF application:

• TTC Mobile: development business plan and DGGF loan application and negotiations for an investment in data and research center in Kenya.
• Linda Lu: development of investment memorandum and business plan and DGGF application for investment in a cotton mill in Ghana.
• Atradius: financial and business review of DGGF transaction export credit insurance.

Contact our colleague Christel Knaap for a free assessment of your plans and more information.