Join us building a gateway for business to Africa
Coming February 2012 the first tender 2012 of the Private Sector Investment Program (a grant program of the Dutch government) will close. Are you thinking of a joint investment with your partner in South Africa, please proceed reading this article!
Short outline of the PSI program:
The Private Sector Investment Program (PSI) PSI supports business investments in (a.o.) South Africa. PSI stimulates innovative pilot investments, with the ultimate goal of strengthening the private sector of the recipient country.
PSI finances projects to ease some of the initial risks that companies encounter when investing in South Africa. A typical project involves a mix of hardware supply and installation, knowledge transfer and project management.
This grant consists of a financial contribution to the costs of the investment (hardware and management) of 50% of the total project costs. The maximum project costs is € 1,500.000, so the maximum grant is € 750.000.
Be aware that it isn’t an instrument for matchmaking, but it is meant for companies wishing to invest in their existing relationship. So in case you are still looking for a business partner to cooperate with, you cannot (yet) apply for this grant.
PSI proposal
The following ingredients are of great importance for a good PSI proposal:
• Consortium:
- both applicant as local partner are private companies (foundations, NGO aren’t eligible for funding) and are financially strong enough to pre-finance the project
- the project has to be in line with the core-business of the project partners
- partners must show a long term commitment (Joint Venture)
- knowledge and experience available
• Additionality
- new activity for the country and not creating market disturbance
• Development Effects
- creating of direct employment (with a preference for a majority of women)
- introduction new technology for the country/region
- positive income effects and working conditions
- policy regarding CSR (corporate social responsibility) has to be implemented.
• Various
- the project is a pilot project, which has to be set up in a maximum period of 30 months (36 months for agricultural projects);
- the program is to stimulate investments: the project must contain sufficient hardware investments like for example: production/packaging facilities, office (new building), machinery and equipment, vehicles.
- also costs for project management (time spent by management of both partners), for legal services and for training will be subsidized.
- spin-off activities are planned (follow-up investments are expected, but not required)
Interested?
Are you interested in this opportunity? Don’t hesitate to contact OAVM (info@oavm.nl). OAVM cooperates with Verbos Business Development BV (www.verbos.nl) regarding this PSI program. OAVM provides the link for companies and entrepreneurs who seek to do business between the Netherlands, Belgium, Germany and South Africa. Verbos is experienced in (international) grant projects.