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.

Results

In the past 15 years, many companies have used the PSI subsidy and its forerunners such as PSOM. The Netherlands Enterprise Agency (RVO.nl) 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.

Evaluation

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.

Project administration

On the page Project administration you can find the various forms needed to report about a PSI project.

Projects overview

PSI projects active on or started after January 2015 can be found at the aiddata.rvo.nl portal. This portal offers an overview of all official development aid (ODA) projects and programmes executed by the Netherlands Enterprise Agency (RVO.nl). You can refine your search by using filter options such as country, sector and programme.

PSI project map

Get inspired

On the page Showcases you can find examples of PSI projects that have been implemented. On the Dutch PSI page Praktijkvoorbeelden you can find interviews with PSI entrepreneurs (in Dutch).

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