Public-Private Partnerships

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 Fifth Tokyo International Conference on African Development (TICAD V) held in May 2013, called attention to the importance of promotion of private sector-led growth in Africa. Succeedingly, following from the Millenium Development Goals (MDGs), the Sustainable Development Goals (SDGs) was adopted with the 2030 Agenda for Sustainable Development in the UN General Assembly in September 2015, including the Goal 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.

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.

Japanese private sector possess technological and human resources in various fields that may assist in fulfilling societal needs and have a positive impact on the social welfare of the partner countries.JICA invites proposals from Japanese enterprises and collaborate with the proponents who have submitted successful proposals.

In October 2008, JICA established the Office for Private Sector Partnership, and then upgraded to the Private Sector Partnership and Finance Department, 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.

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

In recent years, Japanese Small Medium Enterprises (SMEs) have been actively involved in overseas business development, and Japanese government revised the Framework for Supporting Japanese SMEs in OverseasBusiness in March 2012 where JICA became a member of the all-Japan support system for overseas business development of SMEs. Since then, JICA Domestic Strategy and Partnership Department initiated programs for supporting overseas expansion of SMEs.