Dutch Government Subsidies. Dutch Government support for small enterprises in Afghanistan

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Gerard Snow
7 years ago
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1 Dutch Government support for small enterprises in Afghanistan

2 Small entrepreneurs wanting to do business with Afghanistan. What are your options? Instead of setting up a small business by yourself, you could Join hands with one or two Small or Medium Size Dutch companies, and Be the bridge between The Netherlands and Afghanistan, while Being a minority shareholder in a project larger than you could start up yourself.

3 Dutch Government stimulates investment in Afghanistan, by facilitating & cofinancing: PESP Studies PSOM Projects

4 1. PESP Programme (Programme for Economic Cooperation in Projects)

5 Characteristics of PESP Export promotion Dutch hardware Identified Project Solid Afghan entrepreneurs

larger amount Goal: to prove the feasibility of a project to an Afghan

6 Contribution Dutch Government : 2/3 of max. 210,000 In the near future this will possibly change into 50% of a larger amount Goal: to prove the feasibility of a project to an Afghan company Convince banks in Afghanistan and elsewhere that investment is sound Information:

7 2. PSOM Programme (Programme for Cooperation with Emerging Markets)

8 Characteristics of PSOM Investment promotion Joint Venture Pilot Project New for Afghanistan

9 PSOM Memorandum of Understanding (MoU) between Afghan and Dutch Government signed on 15 th March 2005 Implementation by Ministry of Economic Affairs, Agency: EVD

10 Objectives of PSOM 1. Support private sector development in Afghanistan 2. Contribute to Poverty Alleviation & create and/or improve income 3. Create employment, especially also for women 4. Transfer of Know-How 5. Start of sustainable business 6. Set-up of joint Pilot Projects, new to Afghanistan but with proven technology

11 Further criteria of the PSOM Programme 1. The project could be a Pilot Project or a Demonstration Project 2. After the subsidised phase, the entrepreneurs are expected to expand, and therefore invest more in a second phase 3. Projects will have to be new to Afghanistan 4. Projects should be high risk, and therefore no commercial loans can be secured at the initial stage 5. Projects should lead to structural collaboration between Afghan and Dutch partners (Joint Venture)

12 Parameters of PSOM 1. Budget maximum 840, Contribution from Dutch Government: 60% = maximum 504, Afghan and Dutch partners have to finance remaining 40% = maximum 336, Average duration of a PSOM Project: 2 years 5. Agricultural Project: 3 years

13 6. Budget can contain: a. Hardware (60%): Equipment b. Software (40%): Technical Assistance, Training and Management 7. Payment of contribution by Dutch Government on the basis of maximum 5 Results 8. Land is excluded from the Budget

14 Selection Criteria 1. Strategic Importance of the project 2. Quality of Project Plan and Business Plan 3. Financial Aspects 4. Pilot Aspects and what innovative aspects are beneficial for Afghanistan 5. Development Aspects

15 Procedures of PSOM 1. 2 tenders per annum: March & August 2. Next tender: 15 August Detailed Information: 4. Country Information Officer: Mr. Frans Rooyackers rooyackers@evd.nl 5. Project Officer: Mrs. Hélène Zeller zeller@evd.nl

16 How can you benefit from these programmes? 1. Identify needs in Afghanistan 2. Diagnose your strengths & expertise 3. Identify, with the help of AISA, solid Afghan companies 4. Identify a Dutch company with the right technology that can be introduced into Afghanistan 5. Define the role you wish to play and can play, as a partner and bridge between the two cultures

17 Examples of PSOM Projects running 1. Saffran Cultivation: Herat 2. Packing House in Kabul Ideas could be: Dried Fruit Cultivation Poultry Project Vegetable production in greenhouses

Public Private Partnership Sustainable Entrepreneurship and Food Security

Public Private Partnership Sustainable Entrepreneurship and Food Security Workshop FDOV Aad de Koning October 11 th 2012 General result first round of concept notes More than 100 concept proposals; 35