Public-Private Partnerships

New Partnerships that Lead Economic Growth

In recent years, 70% of the flow of funds from developed countries to developing countries has come from private funds. For private-sector businesses in developing countries to generate such development benefits as employment creation, human resource development and improvement of technical capabilities, private-sector activities are vitally important in order to achieve economic growth and sustainable social development. Moreover, the role of the private sector is also crucial in solving such serious global problems as poverty reduction, the environment, climate change, food supply and resources. The Fourth Tokyo International Conference on African Development (TICAD IV) held in May 2008, called attention to the importance of expanding trade and private investment in Africa.

Partnerships with Private-Sector Activities in Developing Countries

JICA’s efforts that promote public-private partnerships are focused primarily on, as previously mentioned, cooperation aimed at improving the business environment in developing countries and the support infrastructure development and improvement of public services through PPP (Public-Private Partnership) in which government and private sector share responsibilities. As a growing awareness of corporate social responsibility (CSR), an increasing number of Japanese companies are implementing social contribution programs and establishing BOP businesses [1] in developing countries, which call for new partnerships between ODA projects and private sector activities.

Office for Private Sector Partnership

In October 2008, JICA established the Office for Private Sector Partnership, which in order to strengthen partnerships with private corporations, have consultation with the private sector and seeks to understand its needs. Since the launch of the Office for Private Sector Partnership, many inquiries and proposals from the private sector concerning potential public-private partnership projects have been received. JICA has also instituted and announced basic policy on private sector partnerships based on Japanese government policies for promoting such partnerships, and we have externally disseminated these policies and good practices through our website and at various opportunities.

• Basic Policy and Case Studies (PDF/155KB)

• [1] BOP(Base of Pyramid) business: Businesses that target the world’s four billion people living in poverty as consumers, employees and producers.