PPP Fund for cooperation with companies in Mano River Union countries

Project description

Title: PPP Fund for cooperation with companies in Mano River Union countries
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Côte d’Ivoire, Liberia, Guinea and Sierra Leone
Overall term: 2011 to 2020

Context

In some West African states, economic and social infrastructure is weakened by long conflicts and crises. During the post-conflict period, governments are not in a position to provide this infrastructure for the population or to open up income-generating opportunities. The economic and social situation of a large proportion of the population is therefore problematic.

In such an environment, private-sector companies can play an important role, enabling the population to take up paid employment and generate income. However, the success of these companies is limited by inadequate public infrastructure, an insufficiently qualified workforce, a lack of rule of law, inefficient public authorities and commercial processes and, not least, by a lack of skilled local suppliers and services.

In particular, the economy in Sierra Leone is dominated by agriculture. The development of the private sector has remained on a marginal level. Youth unemployment is extraordinarily high and many young people have to drop out of vocational training.

Objective

Thanks to development partnerships with the private sector, the economic and social situation of the population in Côte d’Ivoire, Liberia, Guinea and Sierra Leone has improved. Sierra Leone has a better-organised vocational training sector and higher-quality technical and vocational training.

Approach

The thrust of the project’s activities revolves around providing a fund to implement specific development partnerships with the private sector in Côte d’Ivoire, Liberia, Guinea and Sierra Leone. This fund aims to give the population fast and sustainable access to income-generating activities and social services. (Private sector promotion via “Public Private Partnerships” (PPP))

Within the project framework, GIZ cooperates with strong companies, locals or the ones that operate supraregionally, and that have the financial means and operations required to deal with difficult situations in a fragile environment. The companies respect core values in the areas of human rights, labour standards, the environment, anti-corruption and building a strong relationship with the community.

Development partnerships pool the respective strengths of the private sector and of GIZ. They are jointly planned, financed and implemented. Here, the companies benefit from GIZ’s experience, expertise, contacts and worldwide network of experts. At the same time, their commitment contributes to achieving development-policy goals.

Co-financing from the European Union has been extending the PPP fund in Sierra Leone since 2017 and promotes vocational training measures for trainees and vocational school teachers. In Sierra Leone, GIZ also supports the development of vocational training capacities through workshops, mentoring and coaching. These include a diagnostic study of the vocational training sector, a certification programme for vocational qualifications, teacher training and a communication platform for exchange between the vocational training and private sectors.

Results

Five development partnerships have already been concluded via the PPP fund, and another six are currently under way. In the context of these development partnerships, the employment situation improved for the people in the partner countries.

Through the development partnership with Olam Ivoire SA, an average income increase of USD 30 per year was achieved for around 12,000 farmers.

As a result of a partnership with Touton Négoce Côte d'Ivoire, 1,300 small cocoa farmers are using sustainable and biodiversity-friendly farming methods. Consequently, their income increased by at least 17%. In addition, 98 new jobs were created in cassava processing and in advisory services for cocoa producers.

A health insurance system developed with Biopartenaire in Côte d'Ivoire offers micro-health insurance and now has over 7,300 members. This improved working conditions for more than 4,300 people in the long term.

On average, companies bear 55% of the costs of development partnerships.