This year marks a significant milestone for the Dutch Good Growth Fund (DGGF) as it celebrates 10 years of transforming financial ecosystems in frontier markets. Since its inception, DGGF has been committed to bridging the financial gap for the ‘missing middle’ – Small and Medium-Sized enterprises (SMEs) that are too large for microfinance but too small for traditional banking. By enhancing access to finance, DGGF has played a crucial role in driving sustainable development and empowering underserved entrepreneurs, including women, youth, and those in fragile states.
As we look back on a decade of impact, DGGF remains focused on its mission of supporting the growth of frontier markets through inclusive financing. DGGF’s dedication to creating a thriving ecosystem for SMEs has not only provided critical capital but has also spurred innovation and entrepreneurial spirit across emerging markets. To commemorate its 10th anniversary, DGGF aims to bring together its investees, co-investors, partners, and policymakers to reflect on the past decade and strategize new ways to scale impact.
Watch this video highlights that illustrates DGGF’s collaborations and how it aims to make a lasting contribution to improving the financial ecosystems of frontier markets, which also highlights its progress over the last decade
DGGF Impact Report 2024: Ten Years of Enabling Entrepreneurship in Frontier Markets
In celebration of its 10-year journey, DGGF is excited to announce the publication of its new impact report, “Ten Years of Enabling Entrepreneurship in Frontier Markets.” This comprehensive report reflects on DGGF’s contributions to the global SME finance sector and highlights the fund’s strategic initiatives that have shaped financial access for entrepreneurs in emerging markets. You can read the full report here.
A Message from Tomi Davies, ABAN President
As we celebrate DGGF’s accomplishments, we also reflect on the evolution of African angel investing. According to Tomi Davies, African Business Angel Network (ABAN) President, the landscape of African angel investing has undergone a remarkable transformation since the early 2010s. Back then, fewer than 10 active angel investor groups operated across the continent in a fragmented effort. Today, with over 60 active investor groups, the ecosystem has matured significantly, yet it still faces ongoing challenges.
ABAN’s 2023 Survey Report reveals that 85% of African startups face severe funding gaps during the early stages, with only 35% of angel investors consistently participating in follow-on funding. Even more critically, fewer than 30% of angel investors have achieved significant exits. This funding bottleneck, combined with fragmented support structures, has trapped many startups in the ‘valley of death,’ where they struggle to transition from seed to growth.
Tomi Davies’ Take on Addressing Systemic Challenges for a Brighter Future
Despite these hurdles, there have been encouraging developments that hold the promise of reshaping the African startup landscape. Initiatives such as the formation of pan-African investment syndicates, the rise of innovation hubs providing ecosystem-wide support, and the emergence of collaborative platforms between diaspora investors and local stakeholders have opened new doors for growth.
DGGF’s efforts to mobilize local capital alongside foreign investments, along with partnerships between the public and private sectors, are helping to address some of these systemic challenges. If we can scale these collaborative models and improve the flow of both capital and expertise, Africa’s startup ecosystem has the potential to unlock unparalleled value in the coming decade.
DGGF’s impact results as of December 31, 2023:
🍀 Youth entrepreneurs: Youth-owned or led SMEs constitute 36% of our portfolio, and since our inception we supported the creation of more than 50,000 jobs
🍀 Female entrepreneurs: Women-owned or led SMEs constitute 36% of our portfolio, and since our inception we supported the creation of more than 30,000 jobs.
🍀 Fragile states: Our support has reached 4,825 SMEs in fragile states, and since our inception we supported the creation of more than 33,000 jobs.
As we look to the future, DGGF remains our KEY partner in driving inclusive growth and fostering entrepreneurship in Africa and beyond, having funded ABAN’s Annual Survey Reports for the past THREE years.
By continuing to invest in SMEs and supporting initiatives that encourage collaboration, DGGF is helping to build a stronger, more resilient entrepreneurial ecosystem for years to come. Stay tuned for more updates as DGGF highlights its journey over the past ten years!
