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Capacity Development

The aim of FMO's Capacity Development (CD) program is to enable clients and prospective clients to improve their performance and to become more competitive in a sustainable way. The program does this by promoting and facilitating the transfer of knowledge and skills, ultimately to strengthen organizational capabilities. Under the program FMO can contribute to the cost of hiring external consultants or trainers to facilitate this capacity building in client organizations. CD is used in line with FMO’s strategy to support entrepreneurs in developing countries, with a focus on FMO’s core sectors.

Capacity Development Activities

FMO's CD program is demand driven and has the flexibility to meet the needs and requirements of our clients. It can therefore take many forms, including, but not limited to, consultancy, training and start-up projects in the following areas:

  • Risk management [liquidity risk (ALM), interest rate risk, credit risk, operational risk]
  • Environmental and social performance [environmental and social management system (ESMS) design/implementation]
  • Corporate governance (policy and manual development)
  • Product development (retail products, loan products)
  • MIS/IT systems where there is an inclusive/ social or green/environmental development rationale for the project (design, implementation)
  • Professional development (knowledge and skills building, coursework, train-the-trainer, training centers)

General CD Criteria

  • The CD program is client-focused and demand driven. CD projects should benefit the organization itself, as well as having a wider social and/or environmental development impact, including on the natural environment, the operating environment and its wider stakeholders such as employees, customers and society in general.
  • CD can contribute up to 50% of the total budget of an eligible project; the CD beneficiary is expected to co-finance the remainder of the budget to demonstrate their commitment to the project and their buy-in.
  • The CD funding may only be used to pay for services provided by external consultants. If possible, local or regionally-based consultants will be hired. It is not intended to support operational costs or ongoing projects. The CD program should also support projects that are unlikely to be realized without CD support.
  • CD may only be provided to beneficiaries in eligible countries (reference list is available upon request).
  • Tangible assets and software are ineligible for CD funding.

If you are an FMO client and believe that CD could potentially support your organization’s development, please get in touch with your FMO contact person, Investment Officer or Capacity Development Officer.

Project Overview

Below you can find the capacity development projects from 2012 and 2013. For projects invested in from 2014 onwards, please visit our project list.




Many of the solutions our clients are looking for lie not with FMO or external consultants, but with peer organisations from around the world, facing the same challenges and opportunities.

The FMOxChange leverages FMO’s network to connect clients. The program supports the cost of two return flights, allowing clients to fly across the world for a hands-on visit, to share knowledge and learn from each other’s experiences.