Dutch Good Growth Fund

Overview

The Dutch Good Growth Fund (DGGF) is a fund-of-funds established by the Dutch Ministry of Foreign Affairs in 2014 to promote inclusive economic development in developing countries and emerging markets. It operates as a fund-of-funds, investing in local funds and financial institutions that, in turn, finance small and medium-sized enterprises (SMEs) in these regions. This approach aims to bridge the financing gap for SMEs, often referred to as the 'missing middle,' which are too large for microfinance but too small or high-risk for traditional banks. DGGF focuses on sectors such as agriculture, financial services, food and agriculture, mobility and logistics, and other high-impact sectors. It provides equity, debt, and technical assistance to support these industries. The fund targets various stages of business development, including seed, early stage, Series A, Series B, and growth stage investments. Geographically, DGGF has a significant presence in countries across Africa, including Nigeria, South Africa, Kenya, Uganda, Tanzania, Ethiopia, Ghana, Ivory Coast, Senegal, Mozambique, Angola, Zambia, Zimbabwe, Malawi, Botswana, Namibia, Lesotho, Eswatini, Cameroon, Congo, and the Democratic Republic of the Congo. Since its inception, DGGF has committed nearly EUR 400 million, benefiting more than 75 funds and 14,000 firms, and helping to create over 130,000 jobs. The fund's strategy emphasizes supporting entrepreneurs in fragile regions, with a particular focus on women and youth, to foster sustainable development and economic resilience. By investing in local funds and financial institutions, DGGF aims to stimulate private sector investment, promote employment, and facilitate knowledge transfer in developing countries and emerging markets.