This year for Building Prospects has focused on ‘building back business’ initiatives and to continue the execution of the mandate outlined by the Dutch Ministry of Foreign Affairs to promote private sector development and job creation in emerging markets. The fund was able to close eight new transaction totaling EUR 29 mln commitment.
The overall market is still reeling from the aftermath of COVID pandemic, and our focus has continued to ramp up pipeline opportunities.
The war in Ukraine demonstrates the impact of global food systems and the increase urgency for emerging markets to develop and become self-sufficient. We witnessed the war on Ukraine and very pleased for the support from the Dutch Ministry to allow us to participate in a Ukraine transaction: Horizon Growth Fund IV
Climate continues to threaten our future and remains a global issue for everyone so this year we are very pleased with a specific climate focused transaction with HPW, a dried fruit producer in Ghana. The transaction supports the growth of this company to transform production pulp that would have been thrown away and to process it into a fruit snack bar. This transaction demonstrates the funds focus on climate coupled with a creative and environmentally and financially sound solution to reduce production waste management in the value-chain.
The year 2023 is a milestone year for Building Prospects as this is the halfway mark of the 2018-2028 strategy. Over the last five years the portfolio has grown significantly and, as of end of last year, stands at EUR 487 mln with 77 facilities to 66 customers.
Building Prospects remains a highly relevant and impactful policy instrument and will continue to create improved economic prospects for people in developing countries, through sustainable social and economic growth. To ensure this is the case the Dutch Ministry of Foreign Affairs will contract an external evaluation of Building Prospects to be conducted during the year of 2023. The evaluation report will be published later this year.
All-in-all one thing is very clear that challenging times remain ahead. We go into 2023 seeking new opportunities, ideas and perspectives, learning from our successes and our failures, and adapting to meet the challenges we know lie ahead that affect people, planet and prosperity.