Last chance: the PSI subsidy will be abolished in 2014

22 October 2013

The successful PSI subsidy programme will be replaced by the new Dutch Good Growth Fund in 2014. The Private Sector Investment Programme (PSI), known as PSOM until 2008, co-finances businesses operating in emerging markets in Eastern Europe, Asia, Africa and Latin America.

The PSI Programme lowers the financial risk of projects up to €1.5 million through subsidies ranging from 50% to 60%. This concerns projects in low and middle-income countries in which the entrepreneur joins forces with a local entrepreneur to establish a new entity. Corporate Social Responsibility and a good business case are key criteria in this respect.

PSI as an effective tool for financing internationally operating SMBs

The evaluation of the programme over the years 1999 to 2009 shows that 656 project proposals in 56 countries worldwide were approved. On average, a PSI project creates 81 direct jobs and in 57% of cases the project resulted in a lasting enterprise. Furthermore, many PSI projects result in follow-on investments.

Abolition of PSI: last chance at the end of 2013

Recently, Lilianne Ploumen, Minister of Foreign Trade and Development Cooperation, announced that the PSI in its current form will be abolished. The scheme is expected to be available one last time, probably between December 2013 and February 2014.

Preparing a solid proposal takes several months. Berenschot advises companies considering a PSI subsidy to take a decision in the near future. You may contact us without obligation to discuss the suitability and feasibility of your project. Visit our PSI website at www.berenschot.com/psi for other sample business cases.

Dutch Good Growth Fund

In 2014, the PSI Programme will be replaced by the Dutch Good Growth Fund (DGGF), a revolving fund of €750 million. The DGGF offers financial support in the form of loans, guarantees and share participations. Keep updated about this new fund at http://www.berenschot.com/expertise/policy-research-0/dutch-good-growth/ .

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