Support for Projects in Developing Countries - Finnpartnership
Support for Projects in Developing Countries - Finnpartnership
Support for Projects in Developing Countries - Finnpartnership
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F<strong>in</strong>nish Bus<strong>in</strong>ess Partnership Programme –<br />
<strong>Support</strong> <strong>for</strong> <strong>Projects</strong> <strong>in</strong> Develop<strong>in</strong>g <strong>Countries</strong><br />
20 March 2012
F<strong>in</strong>npartnership -<br />
background and objective<br />
• F<strong>in</strong>anced by the M<strong>in</strong>istry <strong>for</strong> Foreign Affairs,<br />
managed by Development F<strong>in</strong>ance Institution F<strong>in</strong>nfund<br />
• The objective is to promote bus<strong>in</strong>ess cooperation<br />
between companies <strong>in</strong> F<strong>in</strong>land and <strong>in</strong> develop<strong>in</strong>g<br />
countries <strong>in</strong> order to <strong>in</strong>crease long-term bus<strong>in</strong>ess<br />
partnerships<br />
• Offers support <strong>for</strong> develop<strong>in</strong>g country projects:<br />
– Bus<strong>in</strong>ess Partnership <strong>Support</strong> (de m<strong>in</strong>imis)<br />
– Matchmak<strong>in</strong>g service<br />
– Advice and guidance<br />
• In close collaboration with bus<strong>in</strong>esses and other public<br />
stakeholders
F<strong>in</strong>npartnershipbackground<br />
and objective<br />
• In close collaboration with bus<strong>in</strong>esses and other<br />
public stakeholders<br />
Embassies<br />
Consultants<br />
Regional<br />
development<br />
agencies<br />
Sister organisations<br />
abroad
F<strong>in</strong>npartnership<br />
- Area of Operation<br />
Low Income<br />
Develop<strong>in</strong>g <strong>Countries</strong><br />
Other Develop<strong>in</strong>g<br />
<strong>Countries</strong><br />
http://www.f<strong>in</strong>npartnership.fi/develop<strong>in</strong>gcountries/
F<strong>in</strong>npartnership –<br />
Services throughout a Project’s Lifespan<br />
Preparatory phase<br />
In<strong>for</strong>mation collection on target country, actors and markets<br />
Bus<strong>in</strong>ess Associate / Partner identification<br />
Matchmak<strong>in</strong>g<br />
(Pre)Feasibility Study<br />
Implementation phase<br />
Employee Tra<strong>in</strong><strong>in</strong>g<br />
Capacity Build<strong>in</strong>g<br />
<strong>Support</strong> Facility<br />
Note! No f<strong>in</strong>anc<strong>in</strong>g<br />
<strong>for</strong> actual<br />
operations<br />
(agreements, devices,<br />
HR, build<strong>in</strong>gs, …)
Bus<strong>in</strong>ess Partnership <strong>Support</strong> – <strong>in</strong> short<br />
• A grant type of seed capital <strong>for</strong> projects aim<strong>in</strong>g at<br />
long-term bus<strong>in</strong>ess partnerships <strong>in</strong> develop<strong>in</strong>g countries<br />
• Can be used to cover expenses <strong>in</strong>curred <strong>in</strong> the<br />
preparatory phase and to cover tra<strong>in</strong><strong>in</strong>g and bus<strong>in</strong>ess<br />
development<br />
• Max 200 000 €/company<br />
– 30/50/70 % of approved expenses depend<strong>in</strong>g on the size of the<br />
applicant and development level of the target country<br />
• Contributes to positive development impacts <strong>in</strong><br />
develop<strong>in</strong>g countries and realization of susta<strong>in</strong>able,<br />
long-term bus<strong>in</strong>ess partnerships<br />
• Grant can not be allocated to support exports from<br />
F<strong>in</strong>land to develop<strong>in</strong>g countries!
Approved BPS by cont<strong>in</strong>ent<br />
<strong>in</strong> 2006 - 2011<br />
3500000<br />
3000000<br />
66 %<br />
2500000<br />
2000000<br />
1500000<br />
1000000<br />
17 %<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
500000<br />
8 % 8 % 2 %<br />
0<br />
Africa Asia LAC Europe Several cont<strong>in</strong>ents
Number of BPS applications,<br />
popular sectors <strong>in</strong> 2006 - 2011<br />
• <strong>Support</strong> allocated mostly <strong>for</strong>:<br />
– ICT (14 %)<br />
– Manufactur<strong>in</strong>g, eng<strong>in</strong>eer<strong>in</strong>g and mach<strong>in</strong>ery (14 %)<br />
– Energy (12 %)<br />
– Environment (10 %)<br />
– Metal and <strong>in</strong>dustry eng<strong>in</strong>eer<strong>in</strong>g (8 %)<br />
– Agriculture and food process<strong>in</strong>g (6 %)<br />
– Forestry, wood & paper (6 %)<br />
– Construction (6 %).
Identify<strong>in</strong>g Bus<strong>in</strong>ess Partnerships –<br />
Matchmak<strong>in</strong>g<br />
• Starts from company’s wish to<br />
f<strong>in</strong>d a new partners <strong>for</strong><br />
bus<strong>in</strong>ess: long term jo<strong>in</strong>t activities:<br />
jo<strong>in</strong>t ventures, import<strong>in</strong>g / export<strong>in</strong>g,<br />
transfer of technology and know how,<br />
etc..<br />
• Companies can apply <strong>for</strong> the<br />
matchmak<strong>in</strong>g service by<br />
submitt<strong>in</strong>g an application<br />
<strong>for</strong>m<br />
• Form can be downloaded from<br />
F<strong>in</strong>npartnership’s website<br />
www.f<strong>in</strong>npartnership.fi/matchmak<strong>in</strong>g
Identify<strong>in</strong>g Bus<strong>in</strong>ess Partnerships –<br />
Matchmak<strong>in</strong>g<br />
• In order to register <strong>for</strong> the Matchmak<strong>in</strong>g Service, company must be<br />
– <strong>in</strong> a solid f<strong>in</strong>ancial base<br />
– registered <strong>in</strong> one of the OECD/DAC listed countries OR <strong>in</strong> F<strong>in</strong>land<br />
– capable of present<strong>in</strong>g a concrete and potentially feasible bus<strong>in</strong>ess<br />
proposal<br />
– established a year prior to register<strong>in</strong>g<br />
• Matchmak<strong>in</strong>g registration <strong>for</strong>m must be supported with additional<br />
documents. The mandatory documents <strong>in</strong>clude:<br />
– F<strong>in</strong>ancial <strong>in</strong><strong>for</strong>mation from last f<strong>in</strong>ancial year<br />
– CVs of key personnel / owners<br />
– Bus<strong>in</strong>ess registration certificate<br />
– Copies of social and environmental related certificates and audits<br />
if the company possesses one.
Identify<strong>in</strong>g Bus<strong>in</strong>ess Partnerships –<br />
Matchmak<strong>in</strong>g<br />
• Bus<strong>in</strong>ess <strong>in</strong>itiatives are<br />
published on the <strong>in</strong>ternet<br />
• Bus<strong>in</strong>ess partnership<br />
<strong>in</strong>itiatives will also be<br />
<strong>for</strong>warded directly to eligible<br />
companies and partner<br />
organisations<br />
• Easy to search the profiles<br />
with the search eng<strong>in</strong>e<br />
www.f<strong>in</strong>npartnership.fi/ partnersearch
Identify<strong>in</strong>g Bus<strong>in</strong>ess Partnerships –<br />
Matchmak<strong>in</strong>g<br />
• F<strong>in</strong>npartnership organises also events and trips of<br />
various types together with partner organisations:<br />
– Country / sector specific events<br />
Matchmak<strong>in</strong>g events<br />
– Network<strong>in</strong>g and company<br />
meet<strong>in</strong>gs<br />
– Trips <strong>for</strong> F<strong>in</strong>nish companies to<br />
target countries
Received Matchmak<strong>in</strong>g applications<br />
2006 - 2011<br />
180<br />
160<br />
158<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
80<br />
73<br />
62<br />
56<br />
46<br />
48<br />
39<br />
21<br />
18<br />
9<br />
4<br />
2006 2007 2008 2009 2010 2011<br />
Not registered<br />
Successful applications<br />
(develop<strong>in</strong>g countries)<br />
Successful applications<br />
(F<strong>in</strong>land)
Argent<strong>in</strong>a<br />
Bangladesh<br />
Belarus<br />
Botswana<br />
Brazil<br />
Cameroon<br />
Colombia<br />
Congo<br />
Ecuador<br />
Egypt<br />
Ethiopia<br />
F<strong>in</strong>land<br />
Guatemala<br />
Ghana<br />
India<br />
Indonesia<br />
Iran<br />
Kazakhstan<br />
Kenya<br />
Lesotho<br />
Malaysia<br />
Maldives<br />
Mali<br />
Mexico<br />
Morocco<br />
Mosambique<br />
Namibia<br />
Nepal<br />
Nigeria<br />
Pakistan<br />
Palest<strong>in</strong>e<br />
Peru<br />
Rwanda<br />
Serbia<br />
South Africa<br />
Sri Lanka<br />
Tanzania<br />
Thailand<br />
Turkey<br />
Ukra<strong>in</strong>a<br />
Uganda<br />
Vietnam<br />
Zambia<br />
Zimbabwe<br />
Other<br />
40<br />
Active Matchmak<strong>in</strong>g applications / country<br />
2006 - 2011<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
2011<br />
2010<br />
2009<br />
2008<br />
2007<br />
2006<br />
5<br />
0
Active Matchmak<strong>in</strong>g applications / sector<br />
2006 - 2011<br />
0 10 20 30 40 50 60<br />
Agriculture/food process<strong>in</strong>g<br />
Automotive parts, lubricants<br />
Chemicals<br />
Construction<br />
Crafts<br />
Educational services<br />
Electrical eng<strong>in</strong>eer<strong>in</strong>g<br />
Electronics<br />
Energy<br />
Environment<br />
Fishery/fish products<br />
Forestry/wood/paper<br />
Furniture<br />
Health/pharmaceutical<br />
ICT<br />
Manufact./eng<strong>in</strong>eer<strong>in</strong>g/mach<strong>in</strong>ery<br />
Metal and <strong>in</strong>dustry eng<strong>in</strong>eer<strong>in</strong>g<br />
M<strong>in</strong><strong>in</strong>g<br />
Packag<strong>in</strong>g/materials<br />
Research and <strong>in</strong>novation<br />
Rubber/plastics<br />
Services<br />
Textiles/cloth<strong>in</strong>g<br />
Tourism<br />
Transportation<br />
Multisector / Other<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011
Matchmak<strong>in</strong>g service / results<br />
2006 - 2011<br />
Result 2006 –<br />
2008<br />
Communication between the<br />
companies<br />
Company visit or meet<strong>in</strong>g be<strong>in</strong>g<br />
planned<br />
Company visit or meet<strong>in</strong>g<br />
conducted<br />
Agreement on concrete<br />
cooperation<br />
Concrete cooperation started or<br />
be<strong>in</strong>g implemented at the moment<br />
Bus<strong>in</strong>ess Partnership <strong>Support</strong><br />
application received<br />
2009 2010 2011<br />
8 25 19 18<br />
0 3 0 0<br />
0 0 7 3<br />
3 1 2 1<br />
1 1 7 4<br />
0 0 0 0<br />
No results yet 18 37 74 72<br />
No response 79 17 8 5<br />
Total 101 84 117 103
How can the target country companies benefit<br />
from the Bus<strong>in</strong>ess Partnership Programme?<br />
• By look<strong>in</strong>g <strong>for</strong> bus<strong>in</strong>ess partners through the service<br />
• By encourag<strong>in</strong>g the potential F<strong>in</strong>nish bus<strong>in</strong>ess partner<br />
to take advantage of the bus<strong>in</strong>ess partnership<br />
support, when:<br />
– The company will have more resources <strong>for</strong> study<strong>in</strong>g<br />
the possibilities of <strong>for</strong>m<strong>in</strong>g a partnership, tra<strong>in</strong><strong>in</strong>g<br />
of the partner company, or the development of a<br />
specific bus<strong>in</strong>ess area of the project (<strong>in</strong>cl. quality<br />
assurance, logistics, certification).<br />
– Those companies that have a strong l<strong>in</strong>k to<br />
F<strong>in</strong>land, can apply <strong>for</strong> the support. E.g. F<strong>in</strong>nish<br />
ownership or significant exist<strong>in</strong>g cooperation with<br />
a F<strong>in</strong>nish actor.
Advice and guidance<br />
• General advisory services <strong>in</strong> the plann<strong>in</strong>g phase of<br />
bus<strong>in</strong>ess projects<br />
• In<strong>for</strong>mation on F<strong>in</strong>nish and <strong>in</strong>ternational<br />
Development F<strong>in</strong>ance Institutions and commercial<br />
banks operat<strong>in</strong>g <strong>in</strong> develop<strong>in</strong>g countries<br />
• Country pages: In<strong>for</strong>mation <strong>for</strong> F<strong>in</strong>nish companies on<br />
actors and bus<strong>in</strong>ess environment of target develop<strong>in</strong>g<br />
countries<br />
• Monthly newsletter: <strong>in</strong><strong>for</strong>mation on bus<strong>in</strong>ess<br />
opportunities and events related to bus<strong>in</strong>ess<br />
partnerships and bus<strong>in</strong>ess opportunities<br />
• Consultant database: contacts of F<strong>in</strong>nish and<br />
<strong>in</strong>ternational experts
Guidance and knowledge:<br />
Expert databases<br />
• -service is a free search service on<br />
experts and consultants<br />
• In this service, experts can market their develop<strong>in</strong>g<br />
country knowledge and companies can f<strong>in</strong>d a suitable<br />
expert <strong>for</strong> their project<br />
• Searches <strong>for</strong> experts can be done on the basis of<br />
e.g. <strong>in</strong>dustry, special knowledge, experience or<br />
geographical location<br />
• Register<strong>in</strong>g <strong>for</strong> the service requires F<strong>in</strong>nish <strong>in</strong>ternet<br />
bank<strong>in</strong>g access codes<br />
• Experts/consultants that do not have F<strong>in</strong>nish access<br />
codes are listed <strong>in</strong> F<strong>in</strong>npartnership’s own database
F<strong>in</strong>npartnership - F<strong>in</strong>nish Bus<strong>in</strong>ess<br />
Partnership Programme<br />
• Grants the Bus<strong>in</strong>ess Partnership <strong>Support</strong> f<strong>in</strong>anced by<br />
the M<strong>in</strong>istry <strong>for</strong> Foreign Affairs<br />
• Channels bus<strong>in</strong>ess partnership <strong>in</strong>itiatives and<br />
opportunities from companies <strong>in</strong> develop<strong>in</strong>g countries<br />
to F<strong>in</strong>nish companies<br />
• Provides wide-rang<strong>in</strong>g advisory services <strong>for</strong> F<strong>in</strong>nish<br />
companies <strong>for</strong> their projects <strong>in</strong> develop<strong>in</strong>g countries<br />
• Contact F<strong>in</strong>npartnership when you are plann<strong>in</strong>g<br />
bus<strong>in</strong>ess activities <strong>in</strong> a develop<strong>in</strong>g country!
F<strong>in</strong>nish Fund <strong>for</strong> Industrial Cooperation Ltd. (F<strong>in</strong>nfund)<br />
<strong>in</strong> brief<br />
• State-owned development f<strong>in</strong>ance <strong>in</strong>stitution<br />
• Risk capital <strong>for</strong> profitable private projects <strong>in</strong> develop<strong>in</strong>g countries<br />
and Russia s<strong>in</strong>ce 1980<br />
• From small and medium-sized companies to large companies<br />
<strong>in</strong> different sectors, both green-field and expansion projects<br />
• Long-term f<strong>in</strong>ancial <strong>in</strong>vestor with m<strong>in</strong>ority stake, EUR 1-10 million<br />
- loans, mezzan<strong>in</strong>e f<strong>in</strong>anc<strong>in</strong>g or equity<br />
• Market-based <strong>in</strong>terest rate – compensation <strong>for</strong> the risk-tak<strong>in</strong>g<br />
• Investment criteria <strong>in</strong>clude profitability, social and environmental<br />
responsibility, development impacts and F<strong>in</strong>nish <strong>in</strong>terest<br />
• Co-f<strong>in</strong>anc<strong>in</strong>g with other European development f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong>stitutions<br />
and commercial banks.<br />
www.f<strong>in</strong>nfund.fi
Organisation<br />
Siv Ahlberg<br />
Marika He<strong>in</strong>onen<br />
Maija Hyypiä<br />
Programme<br />
Director<br />
Junior<br />
Analyst<br />
Matchmak<strong>in</strong>g<br />
Coord<strong>in</strong>ator<br />
Laura L<strong>in</strong>d<br />
Hanna Myllyluoma<br />
Programme<br />
Assistant<br />
Programme<br />
Analyst
c/o F<strong>in</strong>nfund, P.O. Box 391, 00121 Hels<strong>in</strong>ki, F<strong>in</strong>land<br />
tel. +358 9 3484 3314, fax +358 9 3484 3346<br />
fp@f<strong>in</strong>npartnership.fi<br />
matchmak<strong>in</strong>g@f<strong>in</strong>npartnership.fi<br />
www.f<strong>in</strong>npartnership.fi
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