Innovative Approaches for Private Sector Promotion

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In many developing economies, the private sector is underdeveloped, unproductive, not sustainable, and unable to serve society effectively. Private sector development (PSD) aims to improve the way the private sector functions in the economy and to increase private investment in the production of goods and services and the creation of productive and decent employment. The term ‘green PSD’ is used to focus on the role of the private sector in an ecologically-sensitive and socially-inclusive economy. Thus, this falls within a broader effort to promote a ‘green economy’.

The sector project “Private Sector Development” advises the German Federal Ministry for Economic Cooperation and Development (BMZ) on positioning, developing and transferring private sector development approaches into national and international development processes. A special focus lies on approaches to support green and inclusive business models (as part of the broader area of ‘green PSD’) as well as private sector development in refugee contexts.

In the area of green and inclusive business models, the Sector Project supports the BMZ in positioning its approaches in international processes, such as the G20 Development Agenda, and contributes to international peer-learning in fora such as the Donor Committee for Enterprise Development (DCED) or the Aspen Network of Development Entrepreneurs (ANDE). This is where the Sector Project shares its experience with other donors on topics, such as green value chain development. Together with the OECD, the Sector Project is co-chairing the DCED Green Growth Working Group, which is currently working on topics such as green value chains and green business environment reforms.

In addition, the Sector Project is aiming at further developing instruments to support 1) the development of government strategies to promote green and inclusive business models (including eco-system mapping and legal framework for green and inclusive businesses) and 2) start-up promotion and business development services for green and inclusive business models (including investment readiness programmes).

In the field of ‘green PSD’, the Sector Project has recently launched the following publications:

• Green Business Model Navigator (2016)
• Guidelines for Value Chain Selection (2015)

Project Details

Contact name:
Birgit Seibel
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