| South Africa is a new market that is expanding rapidly. This provides opportunities for
businesses to expand investments and trade relations. The Dutch Ministry of Foreign Affairs finances
companies who wish to invest in South Africa, together with a local South-African company. These
companies can receive a contribution of 50 percent of the total project costs.
Not only in South-Africa
'PSOM' is the name of this business-incentive; the Dutch programme for cooperation with emerging markets.
For South Africa, only Dutch companies (together with a South-African company) can apply for such
a PSOM-grant.
But PSOM does not only stimulate investments in South Africa; it also stimulates Dutch investments in other
African countries such as: Benin, Burkina Faso, Cape Verde, Egypt, Ethiopia, Ghana, Kenya, Mali,
Mozambique, Rwanda, Senegal, Tanzania, Uganda and Zambia (See the website
http://www.evd.nl/psom for the latest information on the countries on which PSOM is open).
To meet the criteria for a PSOM-grant, the investment has to be a Dutch initiative, in cooperation with
a local counterpart. But for investments in Uganda or Mozambique, the situation is different: even
companies based in an emerging market (such as South Africa) can apply for a PSOM-grant!
Criteria
To qualify, projects should at least meet the following criteria:
- the project should stimulate the transfer of knowledge and
have a positive impact on employment and income generation;
- the project should aim at introducing a new, but elsewhere proven technology or product;
- the project is initiated and implemented in cooperation with local South African counterparts;
- the project has a maximum duration of 2 years.
The PSOM-projects are selected on the basis of an open tender procedure.
PSOM-grant
The selected projects for South Africa receive a PSOM-contribution of 50 percent of the total
project costs. The maximum total project costs is EUR 1.500.000; the average PSOM contribution
is EUR 0,5 million.
A PSOM-project for Mozambique or Uganda receives 60 percent of the total project costs. The maximum
total project costs is EUR 850.000; the average PSOM contribution is approximately EUR 500.000.
The remainder of the project budget has to be provided by the participants themselves.
EVD
The final responsibility for PSOM lies with the EVD, while the Netherlands Embassy in Pretoria has an
advisory role. For more information on PSOM, companies can visit the website
http://www.evd.nl/psom or send a message to the general e-mail
address: PSOMonline@info.evd.nl.
| 
