1. Development Partnerships
with the Private Sector
Private Sector Cooperation
Deutsche Gesellschaft für Internationale Zusammenarbeit – GIZ
Dr. Jörg Lohmann, Colombia, 16 April 2012
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2. Contents
 Background of Development Partnerships
 develoPPP.de: Background and Procedures
 Project examples
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3. Background of Development
Partnerships
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4. Background – Coalition Agreement
 Intensive involvement of and close cooperation with
the private sector are designed to sustainably fight
poverty and structural deficits in line with the MDGs.
 Strengthening cooperation with the private sector
gives development policy a new strategic thrust and
makes it more effective.
 Expansion/protection of the private sector through
Development Partnerships.
 Efforts to conserve biodiversity and protect the
climate and the environment are based on equitable
cooperation with developing and emerging countries.
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5. GIZ – Partnering with the Private Sector
Development Corporate
cooperation Development objectives
objectives partnerships
 Networks politics, the economy and society
 Acts as a partner for enterprise
 Establishes contacts with local and regional decision-makers
 30 years of experience in virtually all sectors
 Works for and with the economy
 Balances out different interests
 Manages complex processes
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6. Development Partnerships
Development partnerships with private enterprise
 BMZ initiated programme in 1999
 Joint projects by GIZ and privately owned
companies
 In more than 70 emerging nations and
developing countries
 Over 1,200 partnerships to date
 GIZ’s activities cover a wide range of sectors
from ‘A’ for anti-AIDS measures to ‘W’ for water,
and include energy, environment, trade and
health.
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7. ODA and FDI in developing countries
700.00
600.00
US$ 583 billion
500.00 (2008)
400.00
300.00
200.00 US$ 119.8 billion
(2008)
100.00
0.00
ODA FDI
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8. Development Partnerships benefit all
stakeholders
Companies benefit Development cooperation benefits
 sustainable and long-running
 neutrality, integrity and credibility projects since these are in the
 sectoral, country-specific and economic interests of the private
intercultural know-how company
 networks and contacts with  mobilisation of private sector
governments, agencies and investments in development policy
NGOs projects
 coordination, mediation and  creation of job opportunities and
cooperation skills income for local population
 local project planning and  transfer of expertise
management structures  mainstreaming of development
 financial and human resources themes in the private sector
 shift in the way development
cooperation is perceived by the
private sector
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9. The GIZ does not offer…
 subsidies
 export promotion
 venture-capital measures
 low interest loans
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10. General PPP Criteria
 Compliance: Every Development Partnership has to comply
with the development-policy principles of the German
Government.
 Complementarity: Public and private contributions must be
mutually complementary, i.e. cooperation must enable both
partners to achieve their objectives more cost-
efficiently, effectively and swiftly.
 Subsidiarity: Public support for the Partnership measure is only
given if the private partner would not otherwise implement the
PPP and if the PPP is not a legal necessity.
 Competitive neutrality: The measure must not distort
competition.
 Private sector's own contribution: The company has to make
a substantial contribution to the measure that can be assessed
in monetary terms.
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11. Development Partnerships are
particularly good for
 developing and formulating standards and
guidelines that impact on the private sector
 conducting education and training measures in
areas relevant to business
 transferring expertise and technology
 improving the value chain
 carrying out activities that go beyond the
company’s core business activities (e.g. social
and ecological standards, occupational safety
and protection, HIV/AIDS prevention)
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12. develoPPP.de
Background and Procedures
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13. BMZ’s Partnership Programme
Ideas competitions for projects (maximum EUR 193,000 from public funds)
develoPPP.topic develoPPP.innovation develoPPP.alliance
2012: Resource Vocational - Ideas competitions without - Highly significant strategic
Green City: and Climate training, educ thematic requirements alliances (several partners or
Urban Protection ation, qualific - Particular innovative in several countries)
Development ation approaches - Structure-building
Protection Energy - Particular entrepreneurial development results
commitment - Project’s total volume
Raw amounts to at least EUR
Materials 750,000
Rural
Development
with GIZ with DEG with sequa with GIZ with DEG with GIZ with DEG
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14. Three Opportunities – One Programme
The PPP programme develoPPP.de is based on three elements:
 develoPPP.topic
 Selected topics
 develoPPP.innovation
 Innovative private sector proposals
 Entrepreneurial creativity
 develoPPP.alliance
 Particularly groundbreaking PPPs that involve several
partners, countries and larger investments
 Outside the scope of the ideas competition
 Extend far beyond a single company’s reach
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15. GIZ Ideas Competitions – How they work
Due Date
 Current competitions are
published on the GIZ website
15th May 2012
Competition III
Competition II
Competition I
1. Companies hand in a participation form, including a  15th May 2012
short description of their proposal.
 In cooperation with GIZ staff in
2. Development partnership team assesses the
Head Office and abroad
proposal’s eligibility on the basis of given criteria
Step 1
3. Companies are informed about the results of the  Private Sector Cooperation Unit
selection process.
4. The company and GIZ develop a detailed project
concept, including a precise cost calculation.  Companies and Development
Partnership teams
5. After checking and adjusting the concept, the
company and GIZ agree on a contract.  Contracts division, Private
Step 2
6. Once the contract is signed, the partnership proposal Sector Cooperation Unit
is ready for implementation.
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16. Strategic Alliances – Criteria*
Quantitative Criteria Qualitative Criteria
 Supra-regional orientation: Minimum of 2  Above-average significance and
countries* ‘beacon’ character
 Minimum of 2 private partners  Integration of meso and macro-level
stakeholders and above-average
 Total project volume: at least EUR structure-building and sustainable
750,000 (cooperation contract) results
 Multi-stakeholder approach
 Broad-based effectiveness and positive
results for large sections of poor or
disadvantaged population
 High level of innovation
 Potential for replication/ best practices
*A strategic alliance must meet a total of at least six  Links to bilateral TC priority area in at
of the criteria listed here, at least two of which must least one partner country
be quantitative ones.
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17. Project Examples
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18. A Selection of our private partners worldwide:
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19. Costa Rica Challenge
 The protected areas in Costa Rica are
separated through settlements and
Biological corridors agricultural areas.
for conservation and  The natural flora and fauna is out of order.
biodiversity
Approach
Chiquita  Creation of biological corridors between the
fragmented nature conservancies.
04/2005 – 02/2010  Training of the local population in sustainable
Volume: 550 000 € agricultural practices.
Public: 250 000 €
Impact
 Strengthening of the biodiversity.
 Raised environmental awareness of the
people in Costa Rica.
 Alternative opportunities for work (e.g.
tourism).
 Strengthening of Chiquita’s CSR. 30.04.2012 Page 19
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20. Latin America Challenge
East Africa  Many countries do not have sufficient know-
how or financial means to fight the
Adaptation for greenhouse effect.
farmers to climate  The economies of these most affected
change (AdapCC) countries depend heavily on agriculture.
Approach
Cafédirect  Evidence of regional effects of climate
change on coffee and tea sector are analyzed
03/2007 – 11/2010 in Kenya, Mexico, Nicaragua and Peru.
Volume: 820 000 €  Development of local adaption strategies.
Public: 420 000 €
Impact
 Preparation of smallholder farmers for
climate change through joined strategy
development and implementation trainings.
 Preservation of sustainable tea and coffee
cultivation for Cafédirect’s value chain.
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21. Mexico Challenge
 Low level of training among Mexican workers.
 No vocational training offered for metrology.
Environmental and
Metrological
Competence Centre
Approach
Kalibrix  Practical training of industrial trainees and
employees at Querétaro in metrology and
01/2008 – 11/2010 environmental management.
Volume: 530 000 €
Public: 260 000 €
Impact
 Mainstreaming of modern metrology and
environmental management methods at the
University of Querétaro.
 Improved level of training among national
personnel, ensuring companies’
competitiveness.
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22. Worldwide Challenge
 Structural overproduction of coffee led to a
severe price crisis.
Common Code for  The livelihood of more than 100 million
the Coffee people is threatened.
Community (4C)
Approach
 Develop a code of conduct setting out basic
standards for the coffee sector.
Deutscher
 Build up and consolidate organisational
Kaffeeverband
structures in small farming enterprises.
Impact
 3.5% of global coffee supply produced in line
with the criteria given in the code of conduct.
 54% of global coffee producers worldwide
have joined the 4C initiative.
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23. Republic of Congo Challenge
 Periodic bloody conflicts continue to the
present day in Congo‘s regions of North and
Organic Cocoa South Kivu.
Production  The livelihood of the people is mostly
destroyed.
Approach
Esco Kivu  Cultivating cocoa and mixed cultivation
plants.
04/2008 – 03/2011  Training the farmers for modern production
Volume: 1.0 million € standards for the certification.
Public: 300 000 €  Sensitisation to HIV/AIDS and tuberculosis.
Impact
 By 2011 12 000 farmers will be trained to grow
organic cocoa environmentally friendly.
 At the 2009 Chocolate Salon in Los Angeles
dark chocolate bars from Esco Kivu’s beans
scored second.
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24. Contact
Thomas Schneider
Cooperation with the Private Sector
Tel:: +49 (0) 6196/79-2318
Fax: +49 (0) 6196/79-2318
Email: thomas.schneider@giz.de
Internet: www.develoPPP.de
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