Smallholder Production on a Scale of an Export Company — Photo by GIZ/Thomas Jaeschke

About development partnerships with the private sector

The programme for sustainable economic development in Mozambique (ProEcon) succeeds in using this tool to integrate actors, such as smallholders or informal micro-entrepreneurs, into supply chains led by established enterprises.

Development partnerships with the private sector are partnerships between GIZ and a private company based on a cost-sharing project with these common objectives:

• They benefit poor producers and/or consumers by providing them with an access to markets, services and products in ways that improve their livelihoods
• They are profitable commercial ventures of interest to the lead private company

These joint projects aim to provide the necessary services to the inclusive business stakeholders in an efficient way. Development partnerships with the private sectors make a quick start and quick results possible, thus building trust and first experiences for upscaling, offering an entry point for more comprehensive value chain promotion approaches. Private companies bring know-how and constant innovation, and, above all, have a clear business case, making the projects sustainable in the long run.

Results

• Since 2013, 2,825 rural micro and small enterprises have been integrated into supply chains through inclusive business models;
• Over EUR 1 million of private capital has been mobilized since 2013 in the context of 22 development partnerships, primarily in agriculture.

Key success elements

• Experience in the region to find right business partners to jointly develop project ideas
• Start small and develop solutions together
• Be swift and flexible
• Build trust between the stakeholders and work on communication
• Promote embedded services and access to external services, such as financial, ICTs and support access to finance (A2F) for SMEs

Contact

thomas.jaeschke@giz.de

Agrodealer — Photo by GIZ/Thomas Jaeschke