Exporting capital goods to emerging markets can be challenging, especially when financing is difficult for buyers. With the Dutch Good Growth Fund (DGGF), there are opportunities to offer international financing.
The Dutch Good Growth Fund covers payment risks up to 30 million euros. Guarantees can also be covered against the risk that your buyer calls them in error. Our cover is also available for banks that finance or pre-finance your exports. This allows you to offer your buyer longer payment terms, so that they may pay over several years. At the same time, you free up credit with your bank.
Under certain conditions, the fund can also provide financing of up to €5 million to your buyer. The conclusion of such a financing contract is based on supplier credit and goes together with an export credit insurance policy. Atradius can factor in bills of exchange after the goods have been delivered on the spot. You can find out exactly how this works in the 'advance payments' flyer below. It is also possible for Atradius to provide working capital.
This is subject to some additional conditions in addition to our regular conditions. Upon acceptance, you will receive the same insurance documentation as under our regular Export Credit Insurance. You are therefore insured by the Dutch State. The premium is calculated in the same way as under the regular Export Credit Insurance.
For Dutch entrepreneurs wishing to export capital goods to developing countries, it is sometimes difficult to insure a transaction through regular export credit insurance. Especially when relatively small buyers are involved. In fact, it can be challenging to attract private financing.
This is why the Ministry of Foreign Affairs has started offering international financing aimed at developing countries through the DGGF. Central to DGGF is the combination of aid and trade.
On the one hand, the fund focuses on Dutch exports and investments (mainly from SMEs) to developing countries. On the other hand, the fund focuses on local activity in the developing countries themselves. There are currently about 70 countries where projects are eligible for financing through the fund.
An important element for this international funding is the development relevance of the individual projects. We ask you to interpret this positive impact using the selected Sustainable Development Goals (see the SDG header below). The fund is additional to the market and is therefore in particular applicable to a higher risk segment where private financing is not possible.
If your export transaction for capital goods does not fit under our regular Export Credit Insurance, you can still apply for Atradius' export credit insurance and export financing options. Here, in addition to our regular conditions, a number of additional conditions must be met:
Below you can see by continent which countries are eligible for a DGGF application. If a country is not listed, please do not hesitate to contact us. Perhaps we can still help you.
| Algeria | Gambia | Morocco | Sudan |
| Angola | Ghana | Mozambique | Somalia |
| Benin | Guinea | Niger | Tanzania |
| Burkina Faso | Ivory Coast | Nigeria | Togo |
| Burundi | Cape Verde | Uganda | Chad |
| Cenral African Republic | Kenya | Republic of Congo | Tunisia |
| Democratic Republic of Congo | Liberia | Rwanda | Zambia |
| Djibouti | Libya | Sao Tome and Principe | Zimbabwe |
| Egypt | Madagascar | Senegal | South Africa |
| Eritrea | Malawi | SieraaLeone | South Sudan |
| Ethiopia | Mali |
| Afghanistan | India | Laos | Pakistan |
| Bangladesh | Indonesia | Lebanon | Palestinian Territories |
| Bhutan | Iraq | Mongolia | Sri Lanka |
| Cambodia | Yemen | Myanmar | Vietnam |
| Philippines | Jordan | Nepal |
| Armenia | Kosovo | Ukraine |
| Georgia | Moldova |
| Guatamala | Bolivia | Peru |
| Haiti | Colombia | Suriname |
| Nicaragua |
The SDGs are internationally known and provide a widely recognized framework for interpreting development goals. In consultation with the Dutch Ministry of Foreign Affairs, 11 SDGs have been selected to assess DGGF transactions (see below). For these SDGs, Key Performing Indicators (KPIs) and benchmarks have been established to further interpret and, where possible, quantify the expected impact. If these KPIs and metrics do not do justice to the nature of your transaction, we will ask you to explain the expected positive impacts of your transaction more broadly.
In principle, to qualify for the DGGF, projects must directly contribute positively to at least two of the selected SDG categories. We only ask you to indicate where you expect a direct impact of your transaction on one of the listed SDGs. Example: improving infrastructure (SDG 9) is a direct impact, but could in theory, due to reduced travel time, also lead to improved access to healthcare (SDG 3), education (SDG 4), or drinking water (SDG 6). However, while such issues are certainly worth noting and considering, these side effects do not count as direct impacts.
Sustainable Development Goals (SDGs).
| SDG | KPI | MEASUREMENT |
|---|---|---|
| 2 | Agricultural Projects | #assisted farmers |
| 3 | Healthcare Institutions | #supported patients |
| 4 | Educational institutions | #supported pupils/students |
| 5 | Gender equality | % women in jobs created |
| 6 | Drinking water projects Waste treatment & sewerage |
# benefiting water consumers # benefiting users (businesses) |
| 7 | Renewable energy | # Installed capacity in MW # Total annual production in GWh #people with better access to energy |
| 8 | Employment Economic growth |
# jobs created (in FTE, or otherwise specified) # increase in sales (in EUR or USD or %) as a result of investment |
| 9 | Infrastructure | # number of kilometers of (rail) road built # built bridges |
| 11 | Housing construction | #built homes (or otherwise specified) |
| 12 | More efficient production | depending on situation |
| 13 | Atradius DSB green label | # Reduction in greenhouse gas emissions or greenhouse gas removals (or otherwise specified) |
Through the DGGF it is also possible to make use of so-called Technical Assistance. Technical Assistance provides support prior to your transaction. This might include support for the exporter when applying to supply the necessary information, or support for the buyer when this contributes to increasing the development relevance or improving CSR aspects of the transaction.
Due to the large number of transactions accepted by Atradius under the DGGF, the ceiling of this facility has almost been reached. As a result, as of today we can no longer issue new promises of cover, but only cover recommendations. For exporters who have received a coverage recommendation and wish to call out a policy, the 'first come, first served' principle applies. As long as there is still space within the DGGF facility, policies can be called.
Since a substantial part of the bond consists of promises of cover (and not policies), we do not expect to have to disappoint exporters in the short term.
