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• Company under private law, owned by the Federal Republic of

Germany

• Operations in Germany and over 130 countries around the world

• Business volume of over EUR 1.9 billion in 2013

• Main commissioning party: the German Federal Ministry for Economic

Cooperation and Development (BMZ), whose share of the total income

from public-benefit business exceeded EUR 1.4 billion in 2013

• Income from BMZ commissions included EUR 170 million of

cofinancing from third-party donors

• Commissioned by well over 300 public and private-sector bodies in

Germany and abroad

Our profile

A German federal enterprise

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Facts and figures: human resources

• 16,510 employees worldwide

• Over 3,200 staff in Germany

• 11,244 national personnel

• 869 development advisors

• 545 integrated experts and 439 returning experts

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Specialised Business Unit for the

Private Sector

Working together with businesses and

foundations

18/11/2014

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Why partner with the private sector?

Official development assistance (ODA) resources are not

sufficient to achieve the Millennium Development Goals (MDGs)

Foreign direct investment (FDI) consistently doubles ODA from

international cooperation

Important problems hindering development, such as water

shortages, climate change and scarcity of natural resources,

cannot be resolved by states on their own

The private sector has to – and wants to – assume responsibilities

The private sector is an engine of development

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3-pillar model for

cooperation with

businesses and

foundations

Commissions from

the private sector

Forming consortia

with the private

sector

Cooperation on

behalf of public

sector partners

Cooperation with businesses

and private foundations

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Successful cooperation with the private sector

How do we achieve this together?

• By cooperating closely when developing market potential (themes/regions)

• Through joint strategic planning to further transform the portfolio

• Through task forces on specific approaches, themes and markets for

acquisition

• By developing and testing new business formats and models

• Through smart alliances with complementary partners outside of GIZ

• By defining clear responsibilities / a sharp service profile that generate

synergies

• By developing joint acquisition pipelines, where appropriate

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Forms of cooperation

• Projects called ‘development partnerships’

• Partnerships with business chambers and associations

• Cooperation for human resources development/exchanges

• Stakeholder Dialogues/Thematic business platforms

• Sector dialogues for inclusive business

• Advisory services for public-private partnerships (PPPs)

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What are Development Partnerships?

Development Partnerships

are partnerships between development agencies and the private sector on

equal terms.

aim to connect business management and development policy. This leads

to growth opportunities and benefits for companies, while at the same time

contributing to sustainable development.

minimise potential risks for both sides, especially when operating in

developing countries.

Creates win-win situations for companies and development cooperation.

Common goals can be achieved faster and more sustainable.

18.11.2014

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Local economic development

Increase income and improved

livelihood of local communities

Mobilisation of resources of the private

sector

Sustainability governance of value

chains

Improved supply chain management

Market entry and expansion

Reliable sourcing of raw material and

commodities

Reputational risk management

Corporate Social Responsibility (CSR)

Business objectives

Development Cooperation

objectives

Development

Partnerships

Common Goals

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Models of GIZ Development Partnerships

Integrated

Development

Partnership

Africa Facility Fund Fragile States

West Africa

Open call for

specific topics

(quarterly)

Strategic alliance

Private

partner

All companies (local,

regional &

international)

African companies,

international

companies with a

branch office in an

African country

Local companies,

international

companies with a local

branch office

German & European

companies

German & European

companies

Sector Direct contribution to

objectives of bilateral

program

Sectors of the partner

countries

Ghana, Kenya,

Cameroon, Tanzania,

South Africa, Tunisia

Sectors of the partner

countries

Ivory Coast, Liberia,

Sierra Leone, (Guinea)

Projects in various

sectors

Supra-regional, often

entire sectors,

involvement of several

companies and other

stakeholders

Term Tied to program term max. 3 years max. 3 years max. 3 years max. 3 years

Contribution Up to EUR 193,000

Public share

possibly more in co-

operation agreements

Up to EUR 193,000

Public share

GIZ ≤ 50%

Up to EUR 193,000

public share

GIZ ≤ 50%

Up to EUR 200,000

Public share

GIZ ≤ 50%

At least EUR 750,000

Total volume

GIZ ≤ 50%

Application Joint initiative of

company and GIZ

Joint initiative of

company and GIZ

Joint initiative of

company and GIZ

Through open call,

advisory services by

GIZ

Joint initiative of

company and GIZ

Public share

funded by

Bilateral program Africa Facility Fund Fragile States

West Africa

develoPPP.de

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Sequence of a Development Partnership

18.11.2014

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Submission

of proposals*

•

Closing date on

the last day of

each quarter

(open call)

Business

solvency check

•

Assessment of

proposals

according to

criteria

Joint elaboration

of project

concept

•

Budget

Concept review

•

Finalisation of

contract

Implementation

•

Disbursements

according to

progress (only in

case of cash

contributions)

•

Progress reports

End of project

•

Final report

•

Final payment

* In Strategic alliances an approval by the BMZ is required. In addition to the general criteria,

there are also quantitative and qualitative criteria to be fulfilled. Typically, a cooperation

agreement is chosen.

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Success factors

Governance rules, clear rules of participation and application procedures

Clearly defined financial framework, cost sharing rules as well as cooperation and funding

modalities

Clear rules and procedures for the project implementation (contributions, responsibilities, M&E,

reporting)

Check financial and reputational risks and establish minimum requirements for suitable partners

Partners‘ long-term committment as well as openness and trustful relationship among partners,

transparent communication

Involvement of the top-management level of private partners

Project goals according to local needs & counterpart‘s interest

Exit strategy (e.g. local anchoring, institutionalization, self sustained activities)

Local infrastructure, local knowledge and well established local networks

Change agents and multipliers

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Integrating the informal

sector into the steel value

chain

Results

Working conditions in the informal sector are improved

Actors in the informal sector work in a more effective and

coordinated manner, delivering goods and services to the

formal market

Gerdau stabilises its supply chain

Problems

On average, 40% of scrap metal is used to produce steel, and

this comes mainly from the informal sector

Working conditions in the informal sector are poor and there is

no employment protection or social security

Measures

Professionalise actors in the informal sector

Strengthen intermediary organisations in the informal sector

Develop and implement a monitoring system for the entire

value chain

Latin America

(supraregional)

Gerdau

Sept. 2010 – Aug. 2013

Private: EUR 2,000,000

Public: EUR 1,000,000

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DPP DPP

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Microinsurance:

small amounts,

big results

Munich Re

Dec. 2006 – Sept. 2012

Private: EUR 800,000

Public: EUR 800,000

Problems

In 2005, 90% of poor and illegal workers in Asia had no

insurance of any kind

These people do not have access to formal social protection

systems, particularly in the event of natural disasters

Asia

(supraregional)

00

Results

The security and quality of life of low-income households are

improved thanks to suitable microinsurance products

Munich Re’s client base and product range is broadened

Measures

Market analysis and the development of microinsurance

products adapted to the needs of the local population

Awareness campaigns

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Impact

Three phone masts are operated using solar generated power

1,000 villagers gain access to electricity

Health- and climate hazards are reduced

Beacon Lighthouse project with high transferability

Challenge

Only 5 % of all households are connected to the national grid

Energy supply through generators, petroleum furnaces and

batteries is expensive and unhealthy

The lack of investment capacity of the population and small

businesses hinders the spreading of solar energy

Approach

Mobile masts as anchor points for electrification

Energy provider operates Antenna (jointly developed operating

model)

Sale of Energy to nearby villages via prepaid meter system

Uganda Solar power for mobile

phone masts and

households

Kirchner Solar Group

GmbH

08/2012 – 07/2014

18.11.2014

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The Challenge

Inclusive business entrepreneurs face high barriers:

• scarcity of and low accessibility to local market information,

• lack of adequate financing mechanisms / access to finance,

• difficult legal and regulatory framework,

• a complex business and support environment.

Inclusive Business

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• BoP Sector Dialogues

• Inclusive Business Action Network

• Responsible and Inclusive Business Hubs

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BoP Sector Dialogues

The Idea

Inclusive business models, challenges and opportunities differ

from sector to sector.

Within a sector, business models have significant

commonalities enabling learning and cooperation between

business representatives within the same sector.

The Approach

Through hands-on business practitioner guide and workshop, inspire and

enable business representatives – from start-up to established multinational

– to develop, reflect on and enhance their own inclusive business model.

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BoP- Branchendialog

Housing

BoP Sector Dialogues

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Inclusive Business Action Network

Aims at creating a home and single entry point to the global IB

community, to

Connect inclusive businesses, existing initiatives & support

mechanisms of different stakeholders, investors, business accelerators

Facilitate access to knowledge and information, trainings and courses

Enable peer-learning and exchange formats

Foster partnerships and collective action

Provide access to support structures on the ground

GRACIAS