Highlighted results

8,800 business plans for investment or trade supported

225,000 direct jobs supported by PSD programmes

Introduction

In developing countries, more young people enter the labour market each year than the number of new jobs available. For this reason, the Netherlands prioritises the stimulation of young entrepreneurship and youth employment, especially in the focus regions. For example, the Netherlands participates in an innovative fund for youth entrepreneurship from the African Development Bank. The Netherlands itself is launching a Youth Employment Challenge Fund and, through Orange Corners, is also introducing local initiatives to help young people in Africa and the Middle East to become entrepreneurs. Young entrepreneurs are offered coaching through programmes such as Local Employment in Africa for Development (Lead) and PUM Netherlands Senior Experts. Agriterra makes agriculture attractive to young people and investment in the One Acre Fund has been increased. The Dutch Good Growth Fund offers start-ups and social entrepreneurs new forms of financing (working capital and financing in the value chain) and broader technical assistance.

Results 2018

Good jobs and stable incomes offer people prospects and contribute to the fight against poverty, conflict and irregular migration. Business development programmes have supported 8,800 business plans to invest or trade and 255,000 direct jobs. By programmes for transition to sustainable production in global trade chains, the labour conditions of 793,000 workers were improved, 2,736,000 small farmers trained and 6,070,000 hectares of land brought under sustainable land management. With Dutch advice, producers from developing countries exported goods to the value of $ 1,474 million. A total of 21 construction projects have been completed and financing for a further 46 projects has been secured. It is expected that 27 million people will benefit from this new infrastructure. In addition, 2,686,000 people obtained financial services and 90 new financial products were developed for disadvantaged groups. Good economic governance and economic institutions promote the growth of the private sector. The Netherlands therefore supports the capacity building of 435 local organisations of farmers, entrepreneurs and workers. Co-operation with the tax authorities has been expanded to double investment in this area, in accordance with the Addis Tax Initiative.

Result areas

Business development Sustainable production and trade Infrastructure Financial sector development Economic governance and institutions

Featured project private sector development

Sanadcom (DGGF track 2)

Finance for local SMEs in Jordan

Sanadcom, the first and only credit provider in Jordan to focus entirely on SMEs, is able to finance approximately 156 SMEs thanks to a loan from the Dutch Good Growth Fund(DGGF). Many of these companies are owned by young entrepreneurial women. Sanadcom also provides loans to migrants who deserve a chance to start a business in Jordan. This video shows how DGGF supports young and female entrepreneurs in Jordan and what results have been achieved.

Business development

Business development in low- and middle-income countries

A good job is the best way for people to escape poverty. Businesses create jobs. The Netherlands is therefore strengthening entrepreneurship in low- and middle-income countries, with an emphasis on young people and women. Dutch companies are also encouraged to invest and trade in these countries. Faster project development has supported more business activity and employment than expected. With 8,800 business plans in low- and middle-income countries, the target value has been far exceeded. In addition, 255,000 direct jobs in companies were supported by PSD programmes, exceeding the target value and continuing the upward trend.

Open result area

Results

Indicator

Companies with a supported plan to invest or trade

Progress

On track

The number of supported business plans to invest or trade in low- and middle-income countries was almost three times higher than expected. More than 90% of these plans were from local or other companies and almost 10% were plans from Dutch companies. The much higher figures were due to faster project development and the Dutch Good Growth Fund in particular was able to invest more in SMEs by also assisting start-ups.

The Netherlands supports the start-up and growth of companies with advice and financial resources. The scale of this business development is measured based on the number of supported company plans to invest or trade in low- and middle-income countries. This concerns plans that are supported by the Netherlands through private sector development programmes.

Indicator

Direct jobs supported by private sector development programmes

Progress

On track

Private sector development programmes supported 255,000 direct jobs in companies. The target of 220,000 was therefore exceeded and the upward trend continued.

Of the Dutch programmes, three reported a total of 45,720 jobs (54%) for women. It remains important for programme implementers to obtain objective information on the number of female employees and entrepreneurs supported in order to better evaluate the reach of women by programmes.

Successful business development creates more and better jobs in the private sector. According to international harmonisation among donors, annual monitoring mainly focuses on direct jobs within companies supported by private sector development programmes.

Indicator

Indirect jobs supported by private sector development programmes

Progress

On track

2,650,000

Private sector development programmes supported 2,650,000 indirect jobs, mainly through infrastructure development.

Apart from direct jobs, some programmes also report indirectly supported jobs, for instance at suppliers of the supported company or as the anticipated macro-economic impact of supported infrastructure. These are other forms of employment support and are measured differently. These indirect jobs are therefore reported separately.

Indicator

Private co-investments

Progress

Not applicable

€ 2.8 billion

Private co-investments by companies and other private organisations, such as banks, knowledge institutions and NGOs, in ten Dutch private-sector development programmes amounted to € 2.8 billion.

At the Financing for Development Conference in Addis Ababa, government leaders concluded that, in addition to public investment, private investment and know-how are becoming increasingly important to achieving the UN Sustainable Development Goals by 2030. Several Dutch programmes therefore support local and Dutch companies with advice and financial resources to compensate for the higher investment risks in low- and middle-income countries.

The extent to which companies and other private organisations, such as banks, are willing and able to take on these higher financial and political risks is monitored by the amount of private co-investment under the private sector development programme.

The story of the SAMS mobile app

The Local Employment in Africa for Development programme (LEAD) supports young entrepreneurs in countries with refugees, such as Somalia, in growing their business and increasing employment. Faysal is just such a young entrepreneur. He used technology to improve the lives of farmers and to start his own business. This winner of the Innovate Venture Start Up Accelerator Program created a free interactive app for farmers that enables them to charge market-based prices for their products.

Plastic recycling in Guinea

Plastic recycling in Guinea

Touroulé Plastics in Guinea wants to recycle plastic collected from the street in a responsible way. This is good for the environment, for local employment and for knowledge transfer to local employees. The business received assistance from the Dutch Good Growth Fund (DGGF) programme for research and trial runs on recycling.

DGGF - Jordan

Read more on the DGGF financing local SMEs through investment funds in Jordan

Sustainable production and trade

Sustainable production and trade

Good jobs and stable incomes reduce poverty. Programmes for transition to sustainable production in global trade chains improved the labour conditions of 793,000 workers, trained 2,736,000 small farmers and brought 6,070,000 hectares of land under sustainable agricultural management, considerably more than expected. With advice from the CBI, producers in developing countries were able to export goods to the value of $ 1,474 million, of which $ 645 million to EU countries and $ 829 million to other parts of the world.

Open result area

Results

Indicator

Workers with improved labour conditions in accordance with international agreements

Progress

On track

793,000

The labour conditions of 793,000 workers have improved. The Sustainable Trade Initiative also focuses on gender policy and living wage. The Better Work programme of the International Labour Organisation (ILO) works with governments in textile-producing countries to ensure compliance with core labour standards. Better Work signed a Zero Tolerance Protocol with the Vietnamese government to address serious violations of labour standards and is now implementing a gender strategy.

Developing countries need knowledge and technology to expand their production beyond local demand. By applying international production standards with a favourable social and environmental impact and improving working conditions in sectors in which many people work, developing countries can participate in global sustainable trade and increase their prosperity.

To ensure that welfare benefits from trade in sustainably produced goods benefits all participants in international value chains, the Netherlands expects Dutch companies to comply with the OECD Guidelines for Responsible Business Conduct.

Good jobs and stable incomes reduce poverty. The Netherlands actively supports initiatives to improve the labour conditions of workers in various production sectors in developing countries. This varies from agricultural products, such as palm oil, cocoa, tea and soy, to labour-intensive production, such as in the clothing industry. Partners in this area are the International Labour Organisation, multinational companies and NGOs.

Indicator

Training small-scale farmers in sustainable agricultural practices

Progress

Not applicable

A total of 2,736,000 small farmers, significantly more than expected, received training in sustainable farming practices. Of those trained by the Sustainable Trade Initiative, 29% were women.

Through various programmes, the Netherlands is working to accelerate sustainable production within global value chains, such as palm oil, tea and soy. The programmes promote a joint transition to sustainable production methods through worldwide co-operation between companies (large buyers), NGOs, government agencies and knowledge institutes. Training small-scale farmers in the application of sustainable agricultural practices is essential for the effective dissemination of these production methods and for their participation in business chains. Subjects covered include: better agricultural methods and crop protection, implementation of sustainability standards and certification of production, but also strengthening the position of workers and improving their labour conditions (wages, overtime, child labour, gender issues).

Indicator

Hectares under sustainable land use

Progress

On track

6,070,000 hectares have been brought into sustainable land use

IDH and Solidaridad (2016-2020) are working from the Netherlands to accelerate sustainable production within global value chains, such as palm oil, tea and soy. These programmes promote a joint transition to sustainable production methods and sustainable land use through global co-operation between companies (large buyers), NGOs, government agencies and knowledge institutes.

Indicator

Exports in $ million

Progress

Not applicable

With advice from the Dutch CBI programme, producers from low- and middle-income countries were able to export goods to the value of $ 1,474 million, of which $ 645 million to EU countries and the European Free Trade Association (EFTA) and $ 829 million to other parts of the world.

Developing countries need knowledge and technology to expand their production beyond local demand. By professionalising their business operations and applying the international production standards that the market demands, exporters from developing countries can expand their sales across borders. The Netherlands supports producers in developing countries with expertise in marketing and applying higher production standards, enabling them to export to the regional or global market. The Netherlands also supports trade facilitation programmes in low- and middle-income countries in collaboration with local governments and customs authorities.

Infrastructure

Infrastructure

Access to reliable infrastructure is essential for private sector development and to improve the quality of life for people living in poverty. The realisation of infrastructure requires a long-term commitment from all parties involved. Reserving the necessary financing with partners is a crucial milestone for realisation. Thus 21 projects have been completed and financing is assured for 46 committed projects. 27 million people are expected to gain access to new or improved infrastructure through completed and committed projects for which funding is secured.

Open result area

Results

Indicator

Infrastructure projects delivered and committed to being carried out

Progress

On track

21 projects have been completed and funding is assured for a further 46 projects. ORET completed nine projects. A further six ORET projects will be delivered next year, followed by the final five. DRIVEadjusted its policy rules to fill the pipeline of projects faster, as Develop2Build (D2B) has already succeeded in doing. According to the IDF's recent evaluation, the number of committed projects and the volume of private capital raised from the market are above expectations. DRIVE is getting underway and D2B successfully supports companies that conduct preliminary studies.

Access to reliable infrastructure is essential for private sector development and to improve the quality of life for people living in poverty. The realisation of infrastructure requires a long-term (financial) commitment from all parties involved. The Netherlands keeps track of the number of infrastructure projects completed each year under private sector development programmes.

Reserving the necessary financing from partners is a crucial milestone in the realisation of infrastructural projects. This is why the number of committed projects with a signed financing agreement is also an important indicator of the progress of infrastructure development programmes.

The Private Infrastructure Development Group (PIDG), FMO's Infrastructure Development Fund (IDF), Development-relevant Export Transactions (ORET) and Development-relevant Infrastructure Development (ORIO) have proven to be effective programmes for improving infrastructural services. DRIVE's first projects will be implemented in 2019 and D2B successfully supports companies that carry out preliminary studies.

Indicator

End users with access to new or improved infrastructure

Progress

On track

27 million

27 million people will gain access to infrastructure through completed and committed projects for which funding is secured. This is lower than previously because ORET is expiring and DRIVE has yet to realise its project development potential. DRIVE is getting underway with the first projects in the execution phase. The first results of project development under DRIVE, in terms of end users, are expected in 2019.

An indicator of the expected reach and social impact of infrastructure (before and during the often long construction period) is the number of end users that are expected to gain access to new or improved infrastructure.

An estimate has also been made of the number of end users of committed projects for which partners have signed a financing agreement. Together with the estimated number of end users of projects completed in the reporting period, this provides an indication of the expected reach of developed projects.

The Private Infrastructure Development Group (PIDG), FMO's Infrastructure Development Fund (IDF), Development-relevant Export Transactions (ORET) and Development-relevant Infrastructure Development (ORIO) have proven to be effective programmes for improving infrastructural services. DRIVE's first projects will be implemented in 2019. D2B is not yet delivering results in terms of end users but is successfully supporting companies that carry out preliminary studies.

Zanzibar Sugar Mill

Zanzibar Sugar Mill

The FMO's Infrastructure Development Fund has invested in the rehabilitation of this sugar factory. It produces sugar for the local market and generates several hundred jobs in the factory and the agricultural sector. Part of the by-product is used to generate green energy, which is then used in the production process to heat the boilers.

Financial sector development

Financial sector development

Access to financial services is important for poor people and small-scale entrepreneurs to securely save or invest in a business. Special new or improved financial products are therefore being developed or provided in innovative ways, especially to reach poorer target groups. This has resulted in 2,686,000 people obtaining financial services and 90 new financial products being developed through financial inclusion programmes.

Open result area

Results

Indicator

Individuals or firms that obtain financial services

Progress

On track

2,686,000

2,686,000 people obtained financial services. Through MASSIF's investment in ASA Pakistan, thousands of women entrepreneurs obtained funding and financial education. Thanks to the Health Insurance Fund, almost 500,000 people are ensured good health care. The Global Index Insurance Facility insured 1.4 million small (farming) businesses against major risks of loss of income. Further results are expected as these programmes mature.

Access to financial services is important for poor people and small-scale entrepreneurs to securely save or invest in a business. Special new or improved financial products are therefore being developed or provided in innovative ways, especially to reach poorer target groups. An example of this is providing financial facilities for women entrepreneurs with a limited credit history.

Since 2017, this indicator has also included the number of people registered for special insurance policies for the poor, developed with Dutch support. These special insurance programmes protect poor people against major unforeseeable risks of loss of income, such as crop failure due to bad weather or disease. Examples include agricultural and climate insurance for small-scale farmers. This includes the electronic wallet developed by the Health Insurance Fund, which ensures access to health care for women and their children.

Indicator

New or improved financial products introduced

Progress

Not applicable

90

90 new financial products have been developed through financial inclusion programmes. M-TIBA reached more than 800,000 users. A capital market programme in Morocco was supported through FIRST. Laws on real estate investment funds and stock exchange investment funds have also been passed in Morocco, encouraging stock market listing for small and medium-sized enterprises. The first 'sukuk' (Islamic government bond) is underway. The Global Index Insurance Facility launched 55 index insurance products.

Financial services are essential for economic development. Access to financial services is important for people to securely save, insure themselves or invest in a business. This is especially true for poor people in rural areas and for small businesses in countries with weak financial markets and inefficient financial institutions. The Netherlands therefore stimulates the development of innovative or improved financial products tailored to the specific needs and local constraints of low-income groups. Examples include the Health Insurance Fund's electronic wallet, which provides women and their children with access to good health care, agricultural and climate insurance for small-scale farmers through the Global Index Insurance Facility, and facilities for women entrepreneurs with a limited credit history.

Health Insurance Fund

The Health Insurance Fund supported a pilot in Kenya with M-TIBA: a digital platform for inclusive healthcare that has already reached more than 800,000 users. M-TIBA's 'electronic wallet' gives poor people in Africa access to good-quality health care via a mobile phone. M-TIBA has been awarded the Financial Times/IFC Transformational Business Award for sustainable development focused on health, welfare and disease prevention.

Economic governance and institutions

Economic governance and institutions

Good economic governance and professionally organised economic institutions contribute to a business climate in which the private sector can grow. The Netherlands therefore supports 435 organisations that help farmers, entrepreneurs and employees to organise themselves as co-operatives, employers' associations and trade unions, in order to collectively strengthen their economic position.

Well-functioning tax administrations in low- and middle-income countries are particularly important to generate more income for development. The Netherlands is therefore further expanding its bilateral cooperation with tax administrations in developing countries, in line with the donor commitment in the Addis Tax Initiative.

Open result area

Results

Indicator

Economic institutions supported

Progress

On track

The Netherlands supported 435 local organisations in helping farmers, entrepreneurs and employees to organise themselves and collectively increase their earning power. The Netherlandsis expanding its bilateral cooperation with tax administrations in developing countries, in line with the donor agreement in the Addis Tax Initiative in 2015 to double their investment by 2020. The aim is to improve tax legislation and make tax administrations work more efficiently.

Good economic governance and professionally organised economic institutions contribute to a business climate in which the private sector can grow and workers can improve their economic position within the companies for which they work. By organising themselves, farmers, workers and entrepreneurs can increase their earning capacity. Examples include training in professional business management, negotiation or leadership to collectively influence local government to introduce better legislation and regulations. The Netherlands therefore supports organisations that help farmers, entrepreneurs and employees to organise themselves into co-operatives, employers' associations and trade unions, in order to collectively strengthen their economic position.

Well-functioning tax authorities in low- and middle-income countries are particularly important to generate more income for development.

Powerwomen

Agriterra organises Female Leadership training courses annually. The brochure contains 14 inspiring stories of women who have participated in the training. In the video, a young woman talks about her own entrepreneurship and how she encourages other women to start and expand their own business.

DGGF – Morocco

Background information theme private sector development

Glimpse into the future

With the focus on the regions of the Middle East, North Africa, Sahel and Horn of Africa, efforts are shifting more towards fragile states. In these countries, more intensive and longer-term support is needed to develop viable business plans and create employment. As a result of these policy choices, the pace of project development and attainment of results is expected to slow down. The impact of private-sector development in these countries will be considerable, however, due to the lower level of prosperity. In the Palestinian Territories, for example, exceptional results have been achieved with young people who found work for themselves in their ICT start-up after receiving training supported by the Netherlands.

Additional sources

Theme website

Business for Development

NEA IATI website

NEA Open Data Website

Expenditure by channel

Expenditure

Countries and regions