Private sector development
Private sector development
How we are helping
2018-19 Budget Estimate:
Why we give aid
Australia's aid policy framework reflects an increasing focus on the private sector: as the source of economic growth, incomes and jobs; and as a partner with whom we can work to achieve faster and more sustainable development outcomes. Private sector development refers to DFAT's work to support the growth of the private sector in developing countries.
The Minister for Foreign Affairs has approved the Strategy for Australia's Aid Investments in Private Sector Development. The Strategy reflects the Government's priority of growing the size and inclusiveness of the private sector in our partner countries in order to drive economic growth and reduce poverty.
How we give aid
Australia's Private Sector Development investments will target three strategic objectives:
- Building better business and investment environments: For example, reform of business registration processes, contracting laws, customs and trade regulation, enabling access to finance, and supporting the provision of essential hard and soft infrastructure.
- Supporting growth in specific markets: For example, facilitating new business opportunities and removing barriers to efficient market operation, creating market incentives, improving the functioning of value and supply chains, supporting provision of key economic infrastructure through technical expertise and risk management, and providing anchor funding for market builders.
- Maximising the development impact of businesses: For example, partnering with businesses to implement business models that serve the poor as consumers, producers or employees.
The Strategy for Australia's Aid Investments in Private Sector Development are supported by the Ministerial Statement on Engaging the Private Sector in Aid and Development and the Operational Framework for Private Sector Engagement in Australia's Aid Program.
The Ministerial Statement on Engaging the Private Sector in Aid and Development documents how Australia will work with the private sector to achieve our aid and development objectives. The various specific sector and thematic strategies, such as agriculture, fisheries and water and economic infrastructure, should also be consulted to provide more detailed guidance on private sector development relevant to that sector.
The Operational Framework for Private Sector Engagement in Australia's Aid Program was released on 28 March 2019. The Operational Framework is an action plan to strengthen the Department's culture, capability and systems to engage with the private sector and improve the ease of business engagement with the Department.
To find out more about DFAT's work with the private sector, or if you are a business interested in working with DFAT's development assistance program, visit our private sector partnerships webpage or contact email@example.com