The Ministry of Foreign Affairs has decided to permanently end the Private Sector Investment Programme (PSI) as of 2015.
The Private Sector Investment Programme (PSI), formerly known as PSOM, is a subsidy programme supporting innovative investment projects in developing countries. The objectives of PSI are to stimulate financial growth, create employment opportunities and generate income.
The grant was accessible for (Dutch and non-Dutch) companies in order to make an innovative pilot investment, in cooperation with a local business partner, in many countries in Africa, Asia, Latin America and Central and Eastern Europe.
In the past 15 years many companies have used the PSI subsidy and its forerunners such as PSOM. Netherlands Enterprise Agency has supported more than 1000 private investment projects in Africa, Asia, Latin-America and Central and Eastern Europe. These projects have contributed significantly to the economic development and poverty reduction on these continents.
An evaluation (2010) by an independent organisation proved that:
- 69% of the projects were successful at the end of the project period
- An estimated 57% of all projects results in a durable business, seeing that these are still existing 7-10 years after project started
- On average a PSI/PSOM project creates 81 jobs (direct employment), and after follow-up investments even 30% more jobs are created
- In general, PSI projects serve as a good example to other companies regarding CSR. PSI projects offer employment standards that are above average, including salary, fringe benefits and education. Many projects have also encouraged the use of standards and certifications in these countries
- At the end of the project, the project partners made follow-up investments 1.22 times the initial subsidy amount.
Programme is now closed
It is no longer possible to send in proposals. The final occasion to apply for PSI was on 10 March 2014. The Netherlands Enterprise Agency (RVO.nl) from now on only manages PSI projects from previous tenders.
For other financing possibilities, please check the Dutch Good Growth Fund.