BiD Network Event

Toespraak | 15-11-2012

Ladies and gentlemen,

I have been looking forward to this meeting. Dozens of entrepreneurs from developing countries. Many investors and fund managers. And lots of coaches who support enterprise in developing countries.

People often ask me why this government is combining trade with development cooperation. And how I plan to tackle that. Of course, you already know how this combination works. Entrepreneurs from Argentina to Uganda come here to find investors. And Dutch investors come here to find innovative ideas from new markets.

You are here to meet each other. To work out business plans. To develop products. And to set up businesses. In the same way as investors and entrepreneurs are meeting up here, trade and development cooperation are meeting up in today’s world. A world that’s changing fast.

Even in booming markets, there are essential conditions for successful investment. Political stability is an absolute must. A reliable and competitive tax system is more than just a preference. And without sound infrastructure, trade won’t take off.

Cooperation means supporting and advising countries and helping them promote these conditions. We are working to ensure that trade flourishes – worldwide. That’s why I’m Minister for Foreign Trade and Development Cooperation. It’s not only about promoting companies’ interests. It’s also in the interest of the economy. So the whole country stands to gain.

Small and medium-sized enterprises have an important part to play. They account for almost 49% of GNP in Western countries. But only 29% in low-income countries – not counting the informal sector.

They provide scope for growth. They also provide opportunities for investors. And for people with bright ideas that benefit local markets. Like Mshinwa Edith Banzi from Dar-es-Salaam in Tanzania. She knew that, on average, rural households spend between 15 and 32 dollars a month on wood, candles and lamp oil, to light their homes and cook their food. So she came up with the idea of solar-powered LED lights and started up a company that produced them cheaply.

Simple, clean and affordable for all. Mshinwa Edith Banzi has not only made energy cheaper for families. She’s also helped to create a cleaner environment. And she’s created jobs, too. In the past 5 years she’s taken on no fewer than 15 employees. But Mshinwa Edith Banzi isn’t the only person with good ideas. There are dozens more here today and millions worldwide.

But they don’t all set up businesses of their own because it takes more than just good ideas. You need a good business plan too. And money, of course, to start up. Princess Máxima has already talked about the importance of ‘inclusive finance’. We need money, knowledge and ideas. And we need investors, advisers and entrepreneurs. Together they promote growth, innovation and self-reliance.

The Ministry of Foreign Affairs has many years of experience of combining these three things. Because it isn’t always easy for people to find the right business partner.

Most investors aren’t bold enough to invest in first-time entrepreneurs. Most entrepreneurs aren’t bold enough to focus on consumers who have only two and a half dollars a day to spend. And the investors and entrepreneurs who are bold enough often don’t know each other. The Ministry of Foreign Affairs has various programmes to help them along – some of them geared to small and medium-sized enterprises. We build networks of entrepreneurs, we exchange knowledge.  And thanks to an investment matchmaking fund for SMEs, we create over 100 joint ventures every year.

On average, that means 80 to 100 new jobs in each case. At present this is only a small part of what we’re doing in private sector development. But over the next four years, these activities will grow.

As you may know, the government is creating a fund to strengthen the link between foreign trade and development cooperation: 750 million euros for development in partnership with business. To bring together entrepreneurs, investors and advisers — as we’re doing here today. That’s why I’m Minister for Foreign Trade and Development Cooperation. So you’ll be seeing more of me in the next four and a half years!

This meeting with you today is a good start.

Thank you.