Wednesday, November 20, 2019

Schemes to beef up exports

Denmark has launched several new schemes aimed at creating synergies between promoting Danish exports and development efforts.

The new Danish tools are tailored to meet the demand for trade, investment and new technology in developing and emerging economies, as well as to help Danish companies do business in these same countries, according to a statement from the Trade and Development Minister Mogens Jensen.

“It is about making available Danish technology, knowledge and products to countries facing huge challenges,” the minister says.

He has earmarked DKK 20 million annually over the next three years for export-promotion efforts in developing countries through a new scheme called “Danida Business Delegations”. Danish aid can cover up to 75 per cent of the activities in countries with a Gross National Product of less than USD 3,300 per capita. 

Applications for support will be managed by the Danish Trade Council. Firms must document development benefits related to their planned activities and show how they can contribute to job creation.

Another new scheme is “Danida Business Explorer”, which replaces the old Business Project Development facility. Danish companies can apply for Danida to cover 50 per cent of salary, travel costs and consultancy fees related to exploring business opportunities in developing countries. The total budget for 2015 is DKK 5 million and the scheme only supports efforts in countries with a Danish embassy.

Subsidies for individual companies are limited by EU regulations. The rules state that a company (and the group of which it is part) cannot receive state subsidies exceeding EUR 200,000 over three years.

As announced in the aid budget the Danish aid-financed risk capital provider IFU will this year establishes a new facility to support small and medium-sized companies’ investment in developing countries. DKK 60 million has been earmarked for this investment window over the three next years.

As for the Danida Business Partnerships, which was put on hold last fall following a critical evaluation, the ministry says it will it be replaced by a new scheme later this year.