The term public-private partnership (PPP) covers a multitude of different formats and criteria of collaboration. Currently, DCED member agencies together with other key donors have more than 40 programmes and initiatives aiming at poverty reduction and sustainable economic development which fall in the category public-private partnerships (PPPs).
Contents
Forms of Collaboration
Broadly speaking, these PPP mechanisms can be categorised by five major forms of collaboration:
- Mechanisms that help businesses in finding business partners in development countries or implementing partners for development projects (directly or through grant support to facilitate partner identification)
- Funding mechanisms that provide financial support to companies’ investments in development countries.
- Programmes that offer technical support to companies (either directly or through grant support for consultancy services)
- Public-private initiatives that promote knowledge sharing, policy dialogue or advocacy
- Programmes through which businesses can directly contribute to bi- or multilateral development projects.
Overall financial support to a company’s investment is the most common form of support, sometimes combined with other forms of support such as technical advice. The most common form of financial support is grant support. The share of grant support in investments ranges from up to 50% to 90%. Maximum support usually ranges from about $45,000 to up to $1.5 mio, but in most cases it is higher than $250,000. Other forms of financial support include loans, equity and guarantees. Here, the amount of support is usually much higher than in grant support, ranging from $1.5 mio to £100 mio.
In order to qualify as a business partner, PPP programmes generally require the fulfilment of a set of quantitative and/ or qualitative criteria. These often include the following:
- The country of origin of the company: In some cases support is available only for companies in the donor agency’s home country.
- Company characteristics: These sometimes include a certain size and annual turnover, and typically a few years of operations on the market and experience with projects in developing countries.
- Criteria related to the proposed investment: In many cases, financial support is conditional on the investment not taking place without public support, commercial viability of the project, adherence to principles of corporate social responsibility, and the contribution to know-how/ technology transfer, poverty reduction or other sustainable improvement of living conditions.
- Target countries of the investment: Some programmes cover all developing countries or whole regions, while others are confined to the partner countries of a donor agency.
- The sector or area in which the company invests: While most programmes are available for various sectors or areas of investment, some are targeted at specific sectors.
Partnership Mechanisms of DCED Members and other key agencies
For the most up-to-date information on partnership programmes and mechanisms of DCED member and other key donors relevant to private sector and economic development, please refer to the list below. It also indicates the forms of partnership or donor support to businesses. For more details, please refer to the draft synthesis report, which provides brief summaries and a matrix of PPP mechanisms.
For additions to this page contact Melina Heinrich at the DCED Secretariat.
for a synthesis report on partnership mechanisms of DCED Member Agencies (pdf); last updated: 28 March 2012
to view partnership and inclusive business mechanisms by different type of support, as well as target regions and countries, in our Directory for Businesses
1) Multi-Donor Initiatives
2) PPDP Mechanisms by Agency
Austrian Development Agency (ADA)
Australian Agency for International Development (AusAID)
Canadian Department of Foreign Affairs and International Trade (DFAIT)/ Canadian International Development Agency (CIDA)
German Federal Ministry for Economic Cooperation and Development (BMZ)/ German Technical Cooperation (GTZ)
Danish International Development Agency (Danida)
Finland Ministry of Foreign Affairs
Japan International Cooperation Agency (JICA)
- Cooperation with CSR activities of businesses: private support to JICA-assisted projects; technical advice
- Public-private partnerships in infrastructure: financial support (loans); advisory support
- Support to BOP businesses: (n/a)
International Finance Corporation (IFC)
- Advisory and Investment Services: Financial support (loans, grants, equity, debt guarantees); Knowledge sharing; Technical assistance
- Inclusive Business: Sharing knowledge about this approach.
- Linkage Programme: Brokering links between companies; Knowledge Sharing; Technical Assistance
International Labour Organisation (ILO)
Netherlands Ministry for Foreign Affairs
Norwegian Agency for Development Cooperation (Norad)
- Matchmaking Programme: Brokering links between companies; Financial support (grants); Technical assistance
- Norfund: Financial support (loans, equity)
Swiss Agency for Development Cooperation (SDC)
UK Department for International Development (DFID)
United Nations Development Programme (UNDP)
United Nations Industrial Development Organisation
United States Agency for International Development (USAID)