Building Prospects Fund

The monitoring and reporting procedures for the Building Prospects Fund are designed to ensure transparency, accountability, and alignment with development goals. These procedures are managed by FMO on behalf of the Dutch Ministry of Foreign Affairs.

Monitoring Procedures

1. Impact Tracking
   • FMO monitors the development impact of each investment, focusing on:
     • Job creation
     • Climate resilience
     • Gender inclusivity
     • Private sector development
2. Risk Management
   • Projects undergo regular risk assessments, including financial, environmental, and social risks.
   • FMO uses a structured framework to evaluate and mitigate risks throughout the investment lifecycle
3. Capacity Development Monitoring
   • The fund tracks the effectiveness of technical assistance and capacity-building programs, especially in response to challenges like COVID-19

Reporting Procedures

1. Annual Reports
   • FMO publishes detailed annual reports for Building Prospects, covering:
     • Portfolio performance
     • New investments
     • Impact metrics
     • Lessons learned
   • These reports are publicly available and include case studies and financial summaries
2. Fund-Specific Dashboards
   • FMO maintains online dashboards and interactive maps showing active investments and their geographic distribution
3. Stakeholder Engagement
   • Regular updates are shared with stakeholders, including:
     • Dutch Ministries of Finance and Foreign Affairs
     • NGOs and civil society partners
     • Investors and clients

The organizational and decision-making structure of the Building Prospects Fund is designed to ensure strategic alignment with Dutch development policy while leveraging FMO’s investment expertise.

Organizational Structure

• Fund Owner: The Dutch Ministry of Foreign Affairs is the official owner of the fund. It sets the overarching policy objectives and development priorities.
• Fund Administrator: FMO (Netherlands Development Finance Company) manages the fund on behalf of the Dutch government. FMO is responsible for:
  • Project sourcing and due diligence
  • Investment structuring and execution
  • Portfolio management
  • Impact monitoring and reporting

Decision-Making Structure

• Investment Committee: FMO has an internal Investment Committee that reviews and approves projects based on:
  • Financial viability
  • Development impact
  • Climate and gender inclusivity
  • Risk assessment
• Policy Oversight:
  The Dutch Ministry of Foreign Affairs provides strategic oversight and ensures that investments align with Dutch international development goals.
• Annual Reporting:
  FMO publishes detailed annual reports on the fund’s performance, including:
  • New investments
  • Portfolio composition
  • Impact metrics
  • Capacity development activities

To be eligible for funding from the Building Prospects Fund, applicants must meet several key criteria aligned with the fund’s mission to support private sector development in low-income countries, particularly in sectors that promote climate resilience, gender inclusion, and sustainable infrastructure.

1. Geographic Focus
   • Projects must be located in developing countries, especially low-income and lower-middle-income economies.
   • Priority regions include Africa, Asia, Latin America, and parts of Eastern Europe and the Pacific.
2. Sector Focus
   • Projects should fall within one or more of the following sectors:
     • Agribusiness and its value chain
     • Infrastructure (energy, water, logistics, transport)
     • Climate mitigation and adaptation
     • Forestry and off-grid energy
     • Telecommunications (in underserved markets)
3. Private Sector Orientation
   • The fund supports private investments only.
   • Public sector entities may be involved, but the investment must catalyze private sector participation.
4. Impact Goals
   • Projects must demonstrate potential for:
     • Job creation
     • Economic development
     • Climate resilience
     • Gender inclusivity
5. Financial Structure
   • Must be suitable for:
     • Long-term loans (up to €10 million)
     • Minority equity investments
     • Early-stage equity
     • Participation in infrastructure funds
6. Developmental Additionality
   • Projects should address underserved market segments or high-impact areas that are typically overlooked by commercial investor.

Find more details in the Building Prospect Strategy 

Afghanistan, Algeria, Angola, Armenia, Bangladesh, Benin, Bhutan, Bolivia, Burkina Faso, Burundi, Cambodia, Cabo Verde, Chad, Colombia, Democratic Republic of the Congo, Côte d'Ivoire, Djibouti, Egypt, Eritrea, Ethiopia, Ghana, Guatemala, Guinea, Haiti, India, Indonesia, Iraq, Jordan, Kenya, Laos, Lebanon, Liberia, Libya, Madagascar, Malawi, Mali, Moldova, Mongolia, Morocco, Mozambique, Myanmar, Nepal, Nicaragua, Niger, Nigeria, Pakistan, Peru, Philippines, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, South Sudan, Sri Lanka, Sudan, Suriname, Tanzania, Togo, Uganda, Viet Nam, Yemen, Zambia, Zimbabwe