12 February 2014

Last call for grant proposals "Private Sector Investment Programme" (PSI)

The Private Sector Investment Programme (PSI) encourages companies to invest in a long-term relationship with their local partner in o.a. Southern African countries. The last PSI call ever is now open and will close 10 March 2014.
PSI stimulates innovative pilot investments, with the ultimate goal of strengthening the local economy of the recipient country. At the picture you see a training of local farmers in SA (a social project within the scope of PSI). 
If you are planning a joint investment with a Southern African company, continue reading!

 

PSI encourages companies to invest in a long-term relationship with their local partner in o.a. Southern African countries. The last PSI call (there will no new ones) is now open and will close 10 March 2014.

PSI stimulates innovative pilot investments, with the ultimate goal of strengthening the local economy of the recipient country. At the picture you see a training of local farmers in SA (an example of a social project within the scope of PSI).

Be aware that PSI isn’t an instrument for matchmaking, but it is meant for companies wishing to invest in their existing relationship with a foreign company. So in case you are still looking for a business partner to cooperate with, you cannot apply for this grant).

PSI supports business investments in the following Southern African countries (in which the local partner is and the investment project will be established):

  • Angola
  • DR Congo (PSI Plus)
  • Madagascar
  • Malawi
  • Mozambique
  • South Africa
  • Tanzania
  • Zambia

The project will be established in cooperation between a local company and a foreign company (from any country, not being the local country). For example: when the local company is established in Zambia, the foreign company can be established in Holland, as well as for example Botswana as Mozambique. So both cooperation between North-South as South-South is encouraged via this grant.

PSI finances projects to ease some of the initial risks that companies encounter when investing in these countries. A typical project involves a mix of hardware supply and installation, knowledge transfer and project management (like establishment of a production location, a factory, a green house etc).

This grant consists of a financial contribution to the costs of the investment (hardware and management) of 50% of the total project costs (60% for DR Congo). The maximum project costs can be € 1,500.000, so the maximum grant is € 750.000 (for DR Congo: € 900.000).

 

If you think this grant can be interesting for implementing your project, be aware that a number of ingredients are very important for a good PSI application. Please answer the questions below, to check if your company, the partner company and the intended project fit the most important criteria of the grant:

 

  • Is the local partner (in which country the project will be established) a private company, established at the local Chamber of Commerce (or equivalent)? Yes/No
  • Do both companies have an existing business relationship together? Yes/No
  • Do both companies intend to establish a long-term commitment (eg JV) with each other? Yes/No
  • Is the project an innovative project for the country/region, in terms of new product and/or new technology? Yes/No
  • Is the amount of investments in hardware between around 700.000 EURO – 1,1 MIO EURO? Yes/No
  • Does the project create new employment for at least around 30 people?
  • Are both the local and foreign company financially healthy – in terms of profits / balance sheet? Yes/No
  • Will the project have positive impacts on different levels (like implementing CSR policy, impact in the sector and in the supply chain)? Yes/No
  • The grant is meant for projects that still has to be set up. Do you intend to start the project (set up JV, implementing pilot) at earliest in Q3 2014? Yes/No
  • If you decide to apply, in cooperation with our consultant Verbos, it is important that you and your partner are available the coming weeks to spend up to 10 March time (estimated around 10 hours a week) on the application. Is this feasible for you? Yes/No

 

Did you answer all the question with “yes”, then the basic requirements of the project look good.

Because the time is ticking – the closing date of 10 March 2014 is very soon – please contact us immediately for  further investigation of the project regarding the feasibility. Sanec cooperates for the PSI with Verbos Business Development, so please contact Verbos: contact person Verbos: Mrs Petra van der Hout – [email protected] tel.  +31 174 625 344.