Capacity Development

FMO believes that by enhancing capacities in the private sector, fledgling initiatives can become successful, sustainable enterprises - with greater development impact. But businesses in developing markets not only face limited access to traditional funding - their resources are also limited for training, skills development and other areas of knowledge.  The 'Capacity Development' program answers to this need. We run it on behalf of the Dutch Ministry of Foreign Affairs.

The previous agreement with the State on Capacity Development covered 2006-2011. 
During this time we assigned a total amount of €48.2 million to capacity development projects. This went towards approximately 400 projects with more than 300 different organizations, many of which clients of FMO. As the average contribution from the CD program was less than 50% of the projects costs, €100 million was spent at least on knowledge transfer.

Main reoccurring topics for CD were management strengthening (strategy and risk management, credit analysis), organizational strengthening (MIS/IT systems, HR development) and increasingly environmental, social and corporate governance strengthening (E&S management systems and corporate governance policies).

In 2011 the program was evaluated by an external party for the Ministry of Foreign Affairs.  Main conclusions were a high level as satisfaction with the client, the demand driven attitude of the CD program and the personal support by FMO employees.

In 2011 projects were contracted worth €2 million. During the year €9 million was paid out.

Throughout this report are various examples of cases in which the CD program was used. One of these is Sacombank where it will be used for further improving its corporate governance and implementing a social and environmental risk management system.