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Developing the private sector in developing countries

Worldwide, small and medium-sized enterprises (SMEs) drive economic development and provide jobs and income. This also benefits the very poorest groups. Investing in SMEs in developing countries helps reduce poverty and inequality. This is why the government is committed to private sector development, with a special focus on female entrepreneurs and young people.

Strengthening the business climate

Together with our partners, the Netherlands is exploring ways of improving the climate for SMEs in developing countries, so that they can grow in a sustainable way. After all, a strong business climate means more, and better, jobs. 

The Netherlands is working with farmers’ and employers’ associations, trade unions and chambers of commerce to achieve this. We also support projects to improve infrastructure, employment opportunities and education, focusing in particular on: 

  • sectors with the most poverty and inequality; 
  • sectors that are vital for local communities;
  • sectors in which the Netherlands can make the greatest difference. 

These include the agricultural, water and circular economy sectors. 

Making production and trade sustainable

The Netherlands is a trading nation. It plays a major role in international value chains, for example as an importer and processor of goods and raw materials such as cocoa, palm oil and textiles. There are also Dutch businesses that make their products abroad. The government is committed to sustainability, and is helping to make production in developing countries more sustainable. The government also wants to make trade and transport of goods more sustainable. 

One way the Netherlands is doing this is by training local businesses in digital trade. And by helping local SMEs to export to Europe. We are also helping local governments to draft relevant legislation, for example on better working conditions, a higher minimum wage and a ban on child labour. 

A sustainable and inclusive financial sector

The Netherlands is also contributing to programmes that develop financial products and services for SMEs in developing countries, such as insurance and loans with more favourable terms. These programmes are often aimed at businesses owned by women or young entrepreneurs, as well as businesses that provide products, jobs and services to disadvantaged groups.

Public-private partnerships

The government works on private sector development with several partners: 

  • organisations with a social or scientific purpose (NGOs); 
  • knowledge institutions; 
  • local partners; 
  • the Dutch business community, for example through the SDG Partnership Facility (SDGP). 

Countries

The Netherlands is supporting private sector development in the following countries: Algeria, Angola, Bangladesh, Benin, Burkina Faso, Burundi, Chad, Colombia, Côte d’Ivoire, Democratic Republic of the Congo, Egypt, Ethiopia, Ghana, India, Indonesia, Iraq, Jordan, Kenya, Lebanon, Libya, Mali, Moldova, Morocco, Mozambique, Niger, Nigeria, Palestinian territories, Rwanda, Senegal, Somalia, South Africa, South Sudan, Sudan, Suriname, Tanzania, Tunisia, Uganda, Ukraine, Vietnam and Zimbabwe.