Private Sector Investment Programme - PSI
The Private Sector Investment Programme (PSI), formerly known as PSOM, was a subsidy programme supporting innovative investment projects in developing countries.
The Ministry of Foreign Affairs has decided to permanently end the PSI programme as of 2015. For other financing possibilities, please check the Dutch Good Growth Fund.
The objectives of PSI were 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. The Netherlands Enterprise Agency has supported more than 1,000 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 in 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 resulted in a durable business, seeing that they were still existing 7 to 10 years after the project had started;
- On average, a PSI/PSOM project created 81 jobs (direct employment), and after follow-up investments even 30% more jobs were created;
- In general, PSI projects served as a good example to other companies regarding Corporate Social Responsibility (CSR). PSI projects offered employment standards that were above average, including salary, benefits and education. Many projects also encouraged the use of standards and certificatons in these countries;
- At the end of the project, the project partners made follow-up investments 1,22 times the initial subsidy amount.
Financial and project administration
After approval of a PSI proposal, the project partners start implementing the project. An administrative decision defines the results that have to be achieved by the project partners. The partners are obliged to report to the Netherlands Enterprise Agency (RVO.nl) on the progress.
The PSI contribution is reimbursed in predetermined quarterly instalments (for projects started after 2011). Initially, all payments are advance payments. Advance payments can only be made official upon completion of the project and after verification by RVO.nl. Final grants are determined based on the project results. The Agency usually visits each project at least once a year.
Do you want to know how, what and when exactly you have to report to RVO.nl while implementing your project? Please find instructions and templates to be used when reporting to the Netherlands Enterprise Agency. Please note that the document version to use for your report is determined by your PSI/PSOM project number.
Guides to financial administration
Below you can find the various forms needed to report about a PSI project.
Corporate Social Responsibility
You can find PSI projects on AidData. This portal offers an overview of projects that we carry out in the field of development cooperation. You can filter by location, sector and programme, among others.
The original Dutch texts of the official notices on PSI can be found on the Dutch PSI-page 'Officiële bekendmakingen'.
The PSI Official Notices listed below are translations of the official Dutch notices on PSI (Administrative Rules). Please note that some of the PSI Official Notices have not been translated.
- PSI, 7 March 2014 (Amendment Government Gazette No. 6477: only in Dutch)
- PSI, 30 January 2014 (Rectification Government Gazette No. 136: only in Dutch)
- PSI, 18 January 2010 (Rectification Government Gazette No. 647: only in Dutch)
- PSI, 27 January 2010 (Second rectification Government Gazette No. 647: only in Dutch)
Relevant publications and supporting documents for the PSI programme.
- OECD Guidelines for Multinational Enterprises
- ILO Declaration on Fundamental Principles and Rights at Work
- UN Convention on Biodiversity
- Red Flags - Liability risks for companies operating in high risk zones
- FMO Exclusion list
- CSR Risk Check
Watch this film on YouTube to get an idea of PSI.
Stay informed via:
- Ministry of Foreign Affairs