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Irish Aid

Irish Aid, the government’s international development programme, increasingly sees private sector development as a key pillar for reducing poverty and encouraging sustainable economic growth in developing countries. Its strategy emphasises creating stable investment environments, promoting trade links—especially with Africa—and attracting private capital for climate and social objectives.

Private sector development (PSD) strategy and initiatives

Irish Aid has several strategic objectives concerning private sector development. These include encouraging private sector growth to generate jobs and livelihoods, strengthening the capacity of local entrepreneurs and small businesses, and aligning all initiatives with the SDGs. Through strategic partnerships, education, and private sector support, the agency aims to improve employability and stimulate economic growth, targeting 0.7% of Gross National Income (GNI) to be allocated to official development assistance by 2030.

Key private sector initiatives include:

  • Africa Agri-food Development Programme (AADP): A flagship initiative that offers funding to Irish and African agri-food businesses to establish partnerships. It aims to facilitate the exchange of expertise and promote sustainable food systems.
  • Africa Fragility Initiative (AFI): In partnership with the International Finance Corporation (IFC), Irish Aid funds this five-year programme (initiated in 2021) to encourage private sector-led growth and job creation in 32 African countries impacted by conflict.
  • Investment Climate Facility (ICF): Ireland supports this public-private partnership based in Tanzania to improve the regulatory environment for businesses across Africa.
  • Climate and Innovation Support: Through collaborations such as Climate-KIC, Irish Aid funds green business competitions (e.g., ClimateLaunchpad) to support entrepreneurs in countries like Kenya and Vietnam in scaling viable start-ups.
  • Fair and Ethical Trade: Irish Aid has contributed over €20 million since 2002 to the Irish Fairtrade Network, supporting producers in East Africa and Central America in meeting standards that lead to better prices and working conditions.

Strategic partnerships

Irish Aid channels its private sector support through several major international financial institutions:

  • World Bank & IFC: Ireland provides funding for advisory services and initiatives like the Africa Fragility Initiative to unlock private investment in emerging markets.
  • African Development Bank (AfDB): As a member since 2020, Ireland contributes to funds that support private companies investing in regional climate resilience and sustainable growth.
  • Asian Development Bank (ADB): Ireland provides policy input and funding for disaster resilience, particularly for small island developing states.

Resources