Private Sector Engagement

Private sector engagement (PSE) is a strategic approach to international development where donor agencies and nongovernmental organizations consult, strategize, align, and implement activities with the private sector for greater scale, effectiveness, and sustainable outcomes. The topics include: private sector partnerships, mobilizing private capital for development, relationship management, co-creation, value proposition, and shared value.

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March 14, 2024

This blog, the third in a series inspired by the four take-away messages from USAID’s primer on private-sector engagement in fragile and conflict-affected situations, focuses on the Strengthening Livelihoods and Resilience Activity's experience vetting private-sector actors as potential development partners in the eastern Democratic Republic of Congo where a paucity of enterprise data, low standards for company operations, and an absence of familiar business norms make it difficult to apply a typical approach to partner prospecting.

Two men choose their footing carefully as they walk through a grassy swamp, lurching from one foot to the other in tandem. A third man with rolle-up trouser legs and a wide-brimmed hat follows with a more comfortable gait.

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Thoughtful monitoring, evaluation, and learning processes allow for programmatic shifts to increase effectiveness and improve results.

Approaches to economic growth should start with analysis, consider public and private contributions, and leverage possibilities across all sectors.

Inclusive economic growth creates opportunities for all people to engage through their labor and assets to meet market demand.

Market actors respond to the opportunities and constraints shaped by rules and norms at the global, national, or local levels.

Market participation requires a range of financial solutions and investments to meet the needs of individuals, households, and firms as well as to meet national and sub-national financing requirements...

Market facilitation catalyzes market actors to create durable change for more competitive, inclusive, and resilient market systems.

The ability of individual firms to enter, compete, grow, and engage in value chains locally or internationally is what drives market development and economic growth.

Working with and through markets can help speed recovery and limit economic impact during and after disasters.

Sustainable poverty escapes require enabling vulnerable people to manage and mitigate risks while ensuring shocks and stresses don’t undermine development gains.

Women’s economic empowerment exists when women can equitably participate in, contribute to, and benefit from economic opportunities as workers, consumers, entrepreneurs, and investors.

Young people need opportunities for education, jobs, and income. Strategies that empower and engage youth economically contribute to growth and poverty reduction.