The Danisa Kerkero Primary School in the Bale region of Ethiopia has access to electricity for the first time ever thanks to its involvement in a project between Caritas and Power-Blox. Thanks to sustainable solar energy, they can now print documents, charge devices and use classrooms for evening classes, for example.
The Danisa Kerkero Primary School in the Bale region of Ethiopia has access to electricity for the first time ever thanks to its involvement in a project between Caritas and Power-Blox. Thanks to sustainable solar energy, they can now print documents, charge devices and use classrooms for evening classes, for example.

Combining Efforts to generate a Stronger Impact

Role of the Private Sector in Development Cooperation

The private sector plays an important role in International Development Cooperation (IDC). On the one hand, long-term development cooperation projects support local SMEs and thus strengthen the local private sector. On the other hand, companies are increasingly becoming important partners in the financing and technical implementation of projects. A new thematic paper from Caritas Switzerland shows how we can achieve more through cooperation with the private sector.

Companies can and must contribute to sustainable development worldwide. In the Agenda 2030, the UNO firmly emphasises the obligations of the private sector to contribute to the financing of development goals. After all, it is clear that the enormous financial requirements for achieving the goals that the international community has set itself with Agenda 2030 cannot be covered by public funds alone.

No Substitute for Public Funding of Development Projects

In times when countries like Switzerland are cutting their IC budgets, this need is becoming all the more urgent. However, rich countries like Switzerland must not shift their responsibility wholly to the private sector, but must continue to provide sufficient public funds to fight poverty in the Global South.

Like the UNO, Caritas Switzerland also sees great potential in involving the private sector even more as a partner in the technical implementation and financing of projects. This will strengthen development cooperation.

New thematic paper

In a new thematic paper, we set out the principles that should shape this «private sector engagement» (PSE) in order to ensure transparency, accountability and sustainability.

Two examples from our country programme in Ethiopia show the forms that private sector engagement in development cooperation can take:

Strengthening the Local Private Sector

As part of its income generation projects, Caritas Switzerland also works with various private sector actors in the project countries. This in turn helps further to develop local value chains and market systems. Microentrepreneurs acquire new skills. The private sector development (PSD) approach strengthens the resilience of local people and opens up new prospects for them.

Caritas Switzerland is implementing this approach in Chad, for example, in a mandate financed by the Swiss Agency for Development and Cooperation (SDC). Caritas is working there with cooperatives involved in the value chains of peanuts, sesame and shea butter. The project improves the business environment of family businesses so that they can become more competitive. This is done by providing loans, savings opportunities and financial education.

Fachstelle Entwicklungs- und Klimapolitik, Caritas Schweiz

Angela Lindt

Head of Development and Climate Policy advisory service

+41 41 419 23 95alindt@caritas.ch

Header image: The Danisa Kerkero Primary School in the Bale region of Ethiopia has access to electricity for the first time ever thanks to its involvement in a project between Caritas and Power-Blox. Thanks to sustainable solar energy, they can now print documents, charge devices and use classrooms for evening classes, for example. © Ayaana Publishing