Private sector
The 2030 Agenda for Sustainable Development can only be achieved with a whole-of-society approach. The innovative strength, expertise and resources of the private sector are indispensable for overcoming global development challenges. The SDC has consequently stepped up its engagement with the private sector to foster sustainable development worldwide.
Private sector and sustainable development
The private sector plays a key role in sustainable poverty reduction. About 90% of jobs in developing countries are in the private sector. The products and services supplied by private enterprises improve the lives of countless people. The private sector is also a driving force for innovative solutions to development challenges. Switzerland’s International Cooperation Strategy 2025-28 therefore highlights the tremendous potential of private sector engagement (PSE).
Foundations of collaboration with the private sector
Private sector actors from any country are eligible for PSE collaborations. However, partnerships with the private sector must meet clearly defined criteria: respect for human rights and anti-corruption standards; a shared vision and shared responsibility for the targeted impact; clear-cut indicators; inclusive monitoring. The SDC engages with companies regardless of their size, with social enterprises, impact investors and foundations. Frequently, non-governmental organisations (NGOs) and academic institutions are also included in such partnerships.
PSE involves one or more private sector actors and the SDC partnering on an equal footing and sharing costs, benefits and risks.
- Co-initiating: the partners jointly initiate the collaboration and develop novel solutions.
- Co-steering: the partners share a commitment to making the collaboration successful. Typically, both the SDC and private sector partners are actively involved in the governing bodies of a PSE collaboration.
- Co-financing: all partners must contribute financially and/or materially.
- Co-steering and co-financing distinguish PSE from other forms of interface with the private sector, for example awarding contracts or projects to local companies in the SDC’s priority countries.
Private sector actors contribute investments, expertise, and innovation, while the SDC promotes the engagement of the private sector through advisory services, financial support, risk mitigation and regulation. By reducing the financial risk, the SDC facilitates private investment in difficult contexts.
The PSE approach has a lot of potential but there are also challenges. The SDC makes every effort to minimise risks and select its partners carefully. A common risk management strategy is crucial, thus the SDC has put in place a comprehensive PSE risk management process that is based on established practices. This must be followed during the entire period of collaboration.
Collaboration between the private sector and the SDC
At the end of 2023, the SDC was working with 761 partners in different contexts and was involved in 124 projects with at least one private sector partner. PSE spans a wide range of thematic areas and applications. The SDC’s focus is on innovations in the financial sector, which support greater investment in social enterprises and in the least developed countries.
Documents
Economy and education
The SDC supports education and connects it to local economies through vocational skills development. In doing so, it promotes inclusive growth and the private sector.
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