Notes to the annual accounts

1. Current accounts

In 2019 the Development Accelerator had no bank account but a current account with FMO which could be freely disposed of, among others for client drawdowns from committed but not disbursed amounts. Since 2020 the Development Accelerator has its own bank account.

2. Accrued liabilities

Accrued liabilities primarily relate to unpaid development contribution expenses.

3. Net interest income

4. Expenses

Remuneration costs relate to personnel and other expenses charged by FMO in return for provided services to the Development Accelerator in accordance with the agreement made with the Ministry of Foreign Affairs.

Development contribution expenses relate to contributions paid to beneficiaries in terms of the Fund's objectives. Annex 1 contains the current list of projects entered into by the Fund.

5. Off-Balance Sheet information

Irrevocable facilities (off balance sheet commitments) relate to development contribution contracts which have potential future disbursements.

The amount for off balance sheet commitments is much higher than previous year due to an increase in the number of projects contracted.

6. Related party information

Dutch Government:

The Dutch Ministry of Foreign Affairs, more specific department Directoraat-Generaal Internationale Samenwerking (DGIS), sets up and administers the investment funds (“State Funds”), including the Development Accelerator fund, according to the Dutch Government’s development agenda. DGIS is the main contributor to Development Accelerator, providing funding upon FMO’s request (2020: € 8 million; 2019: € 1.5 million).

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”)

The Dutch development bank FMO supports sustainable private sector growth in developing and emerging markets by leveraging its expertise in agribusiness, food & water, energy, financial institutions and Dutch business focus areas to invest in impactful businesses. FMO is a public-private partnership, with 51% of FMO’s shares held by the Dutch State and 49% held by commercial banks, trade unions and other members of the private sector. FMO has a triple A rating from both Fitch and Standard & Poor’s.

FMO has been entrusted by the Dutch Government to execute the mandates of the State Funds. Currently MASSIF, Building Prospects, Access to Energy – I, FOM, FOM-OS, Development Accelerator, Partnership Development Facility and the Land Use Facility of the Dutch Fund for Climate and Development (DFCD) are under FMO’s direct management. The execution of Access to Energy – II and the other facilities of DFCD are performed by third parties under FMO’s supervision.

FMO charges an amount to the Dutch Ministry of Foreign Affairs as compensation for personnel and other expenses and it is reimbursed accordingly from Development Accelerator’s subsidy amount (2020: € 2,375k; 2019: € 1,834k). In accordance with the agreement Beheerskostenvergoeding FMO 2020, dated 29/12/20, these were the estimated expenses based on the agreement written in the contract and FMO reassessed this and concluded that these were the actual cost in 2020.

Remuneration costs have increased as in 2020 more FMO employees have participated in activities for the fund. 

7. Subsequent events

There has been no significant subsequent event between the balance sheet date and the date of approval of these accounts which should be reported by the Fund.