PPP Facility for Sustainable Entrepreneurship and Food

By Anno Galema, Coordinator Public Private Partnerships, Department Sustainable Economic Development, Dutch Ministry of Foreign Affairs

The Dutch Ministry of Foreign Affairs and Development Co-operation has established a Public Private Partnership Facility for Sustainable Entrepreneurship and Food Security (FDOV) to encourage more private sector innovation and investment to improve food security. In broad terms, the Facility aims to finance projects that lead to poverty alleviation, sustainable economic growth and self-reliance.

The Facility, which is open to both multi-national and national businesses in 60 low and middle income countries, is able to subsidise a maximum of 50% of the total project budget, and a minimum of 25% private funding is required. The first competition round will commit €100 million of public funds to PPP projects.

Through a series of competition windows, companies are invited to submit business ideas that will directly improve food security for the poor. Applications must meet pre-defined criteria including commercial viability and sustainability and meet certain requirements. For example, the Dutch government’s capital investment cannot be used to finance commercial investments of companies, but rather should be utilised to support complementary projects which are potentially too risky for private investors alone.

In support of sustainable entrepreneurship goals, business ideas can address improvements to the enabling environment, for example legislative and regulatory improvements, or tackle supply chain related infrastructure constraints. Proposals can also focus on improving access to finance, capacity building through enhanced knowledge and skills, and enable greater access to markets.

From a food security perspective, business ideas should identify ways to sustainably increase food production, enable greater access to healthy food, ensure markets function more efficiently and generate improvements in the overall business climate.

Partnerships may vary in scope from a simple bilateral partnership to a multiparty consortium, but must include the Dutch Ministry of Foreign Affairs as public partner and at least one company or business. The participation of a knowledge institute or an NGO is not obligatory, but can in many cases be of added value. The Ministry anchors the Facility to the Netherlands by stipulating that at least one partner organisation is based in the Netherlands. Likewise one partner should be from the target country to ensure local relevance and ownership.

After an initial screening, successful applicants are invited to develop more detailed proposals. The Facility then works with the short-listed companies to help refine their submissions to ensure they meet the required criteria. To date, two calls for ideas have led to over 100 business ideas being submitted with 36 projects being invited to submit detailed project proposals, with a subsidy ranging from € 1-to €10million. Having completed its due diligence, it is anticipated that the Facility will announce successful projects around May 2013. A third competition window is being considered at a later date.

For further information, click here.

PPP Facility for Sustainable Entrepreneurship and Food

By Anno Galema, Coordinator Public Private Partnerships, Department Sustainable Economic Development, Dutch Ministry of Foreign Affairs

The Dutch Ministry of Foreign Affairs and Development Co-operation has established a Public Private Partnership Facility for Sustainable Entrepreneurship and Food Security (FDOV) to encourage more private sector innovation and investment to improve food security. In broad terms, the Facility aims to finance projects that lead to poverty alleviation, sustainable economic growth and self-reliance.

The Facility, which is open to both multi-national and national businesses in 60 low and middle income countries, is able to subsidise a maximum of 50% of the total project budget, and a minimum of 25% private funding is required. The first competition round will commit €100 million of public funds to PPP projects.

Through a series of competition windows, companies are invited to submit business ideas that will directly improve food security for the poor. Applications must meet pre-defined criteria including commercial viability and sustainability and meet certain requirements. For example, the Dutch government’s capital investment cannot be used to finance commercial investments of companies, but rather should be utilised to support complementary projects which are potentially too risky for private investors alone.

In support of sustainable entrepreneurship goals, business ideas can address improvements to the enabling environment, for example legislative and regulatory improvements, or tackle supply chain related infrastructure constraints. Proposals can also focus on improving access to finance, capacity building through enhanced knowledge and skills, and enable greater access to markets.

From a food security perspective, business ideas should identify ways to sustainably increase food production, enable greater access to healthy food, ensure markets function more efficiently and generate improvements in the overall business climate.

Partnerships may vary in scope from a simple bilateral partnership to a multiparty consortium, but must include the Dutch Ministry of Foreign Affairs as public partner and at least one company or business. The participation of a knowledge institute or an NGO is not obligatory, but can in many cases be of added value. The Ministry anchors the Facility to the Netherlands by stipulating that at least one partner organisation is based in the Netherlands. Likewise one partner should be from the target country to ensure local relevance and ownership.

After an initial screening, successful applicants are invited to develop more detailed proposals. The Facility then works with the short-listed companies to help refine their submissions to ensure they meet the required criteria. To date, two calls for ideas have led to over 100 business ideas being submitted with 36 projects being invited to submit detailed project proposals, with a subsidy ranging from € 1-to €10million. Having completed its due diligence, it is anticipated that the Facility will announce successful projects around May 2013. A third competition window is being considered at a later date.

For further information, click here.

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