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The private sector plays a crucial role in development, and is an important partner to Sida.

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Private sector

Collaboration with the Private Sector

Published: 20 April 2010 Updated: 11 August 2015

The private sector drives innovation, investment and growth, thus playing a crucial role in development. Private sector collaboration is therefore vital for Sida in its contribution to fair and sustainable development.

Sida collaborates with private sector actors in most sectors and thematic areas, stimulating private sector development, entrepreneurship and corporate responsibility in developing countries. Sustainable use of resources, environmental adaptation and mitigation are important aspects of collaboration. We focus on collaboration that leverages resources from private sector actors. The overarching goal that governs private sector cooperation is the same as that of Swedish development cooperation, namely to help create conditions that will enable poor people to improve their lives.

The private sector has a role in development, not only by generating jobs and economic growth, but also by creating sustainable solutions to global challenges. Private sector collaboration is therefore vital for Sida in its contribution to fair and sustainable development, and not only as a tool to promote growth. More and more countries are able to manage without traditional development aid, and strive to develop through building new relations. This enables Sida to invest more in stimulating sustainable relations between Swedish and foreign parties built upon mutual interest and shared responsibility.

The idea is to find ways to better leverage the skills and resources of the private sector and using development assistance as a catalyst to bring about more and faster change. Ultimately, it is all about accelerating the fight against poverty.

One important principle of Sida’s collaboration with actors of the private sector is that it is open to the private sector from all over the world. Our support is additional and catalytic. The idea is to make things happen that would not otherwise occur by sharing costs and lowering risks. Our private sector partners in a development initiative would finance at least 50 per cent. Sida is collaborating with private sector actors in order to:

  • involve and stimulate private sector actors in reducing poverty
  • involve, mobilize and make better use of them as actors, suppliers, advisers and dialogue partners in development cooperation
  • stimulate private sector development and entrepreneurship in particularly poor countries and regions
  • cooperate and collaborate with other donors and actors, such as civil society organisations, regarding private sector support and collaboration, including strategic partnerships
  • use innovative and flexible methods and working procedures
  • support strategic information and communication technology activities for poverty reduction (ICT4D)
  • contribute to the development of markets and production methods for the benefit of people living in poverty by cooperating with organisations and companies.

As a way of encouraging private sector contribution to poverty reduction we offer many types of engagement and support, all with the same objectives: to create conditions that enable poor people to improve the quality of their lives and which facilitate sustainable global development. In addition communication and dialogue are fundamental aspects for collaboration. Continuous dialogue between public and private sector actors – in Sweden, internationally and within the partner countries – is important to exchange experiences, explore synergies and the possibilities of working together.


Page owner: Department for Partnerships and Innovations

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