ODA Policies

July 26, 2021

About Public Private Partnership

Nowadays, the role of investment by private companies has become more important for the economic growth of developing countries. Various projects conducted by Japanese private companies in developing countries can yield a range of benefits to these countries such as creating local employment opportunities, developing human resources, augmenting tax revenue, expanding trade and investment, contributing to the acquisition of foreign currency, and transferring Japan’s high-standard technology.
The Government of Japan carries out various assistance aiming at generating efficient and effective development outcome through such collaboration with private companies.

Supporting Menu

(image) Supporting menu for public private partnership by Japanese government. JICA SDGs Business Supporting Surveys. SME Partnership Promotion Survey supports collection and analysis of basic data. The period is from few months to around 1 year. This scheme is for for Small-Sized Enterprise. SDGs Business Model Formulation Survey with the Private Sector supports for examine feasibility of technologies, products, and knowhow to develop a business model proposal. The period is from few months to around 1 year. This scheme supports every size of companies including small, Medium-Sized and large enterprises. SDGs Business Verification Survey with the Private Sector supports verify technologies, products, and a business model to develop a business proposal. The period is around 1-3 years. This scheme supports every size of companies including small, Medium-Sized and large enterprises. JICA Preparatory Survey for Private-Sector Investment Finance support the formulation of private sector-led projects that will use Private-Sector Investment Finance of JICA. There are two types, phase 1 survey and phase 2 survey. These above surveys are implemented as commissioned surveys. Japanese government also implementing other form of supports including, ODA Loans, Grants, Technical Cooperation, Commercial Implementation by Japanese companies without ODA and JICA Private-Sector Investment Finance (PSIF). Other than these already mentioned, there are 4 other scheme which are provided for partnership with private sector. First is Advisor of Trade and Investment Promotion, providing information about local business environment. The second is JICA PARTNER, provides Information Web platform for International career. The third is JICA Private-Sector Partnership Volunteer Program, providing opportunities for Employees from companies dispatched to developing countries as JICA volunteer, aiming for gaining experience in the developing countries. Last one is ABE Initiative, providing opportunities for networking with students from Africa.

1. JICA SDGs Business Supporting Surveys

(photo 1) Children enjoy learning with educational tables provided by a Japanese company. Photo by JICA
(photo 2)Feasibility study of Japanese technology conducted in a developing country. Photo by JICA

The Japanese private sector including SMEs (Small and Medium-sized Enterprises) possesses technological and human resources in various fields that may assist in fulfilling social needs and have a positive impact on the social welfare of partner countries. Through this survey scheme, JICA helps developing countries match their development needs with the appropriate products and technologies provided by Japanese companies of which greater part is SMEs.
The program provides opportunities for commissioned surveys for information collection (SME Partnership promotion survey and SDGs Business Model Formulation Survey with the Private Sector) and for the development of business plans based on the verification activities of proposed products or technologies (SDGs Business Verification Survey with the Private Sector). The program has two categories: “SME support type” and “SDGs business support type”. The former is also expected to invigorate the Japanese economy and regions, through supporting the expansion of SMEs’ businesses abroad, within the aforementioned objectives.

2. JICA Preparatory Surveys for Private-Sector Investment Finance

(photo 3)Construction implemented by using products of a Japanese company. Photo by JICA

In recent years, there has been a growing global trend to improve a wide variety of infrastructures aiming at further enhancing effectiveness and efficiency not only in the construction phase, but also in post-construction operation and maintenance in emerging and developing countries. For such infrastructure projects, it is important for public and private sectors to collaborate and engage with each other from the initial stages of project formulation in order to appropriately divide roles between the public and private sectors. As such, JICA offers Preparatory Survey for Private-Sector Investment Finance (PSIF F/S) for the formulation of business plans by calling for proposals widely from private companies that are planning to participate in infrastructure projects aiming at utilizing PSIF (JICA Private Sector Investment Finance) or ODA loans as part of its “Preparatory Survey” of private sector proposal-based programs.

3. JICA Private-Sector Investment Finance (PSIF)

(photo 4)Wind power generator installed by a Japanese company. Photo by JICA

PSIF refers to a type of ODA financing scheme implemented by JICA, and is provided to private companies carrying out projects in developing countries as investments and loans for its necessary funds. Although such projects create jobs and revitalize the economy of hosting countries, it entails various risks, and high return cannot often be expected. Thus, existing financial institutions are often reluctant to provide these companies with sufficient loans. PSIF provides investments and loans for projects that are considered highly effective from a development perspective, but may be difficult to be sufficiently funded by existing financial institutions only. PSIF assists in the following fields for funding: i. infrastructure development and accelerating growth, ii. SDGs (including poverty reduction, measures against climate change).

4. ODA Loans

(photo 5)Metro constructed by Japanese ODA. Photo by JICA Shinichi Kuno

Japan develops quality infrastructure that leads to quality growth in developing countries and regions, in line with their economic and development strategies, and trains human resources to manage and operate this infrastructure. Japan’s strength lies in developing infrastructure that is truly contributory to “quality growth” in developing countries, which includes technology transfer and job creation.
ODA loans are sovereign-based lending with concessional conditions (similar to development finance provided by Multilateral Development Banks) to finance development projects.

5. JICA Private-Sector Partnership Volunteer

(photo 6)One of JICA volunteers enjoy interaction with local people. Photo by JICA

In order to assist in developing global human resources required by SMEs and other entities, the Government of Japan established the “Private-Sector Partnership Volunteer” program in 2012, in which employees from companies are dispatched to developing countries as Japan Overseas Cooperation Volunteers (JOCV) or Senior Volunteers (SV) while keeping their affiliation with their companies.

6. ABE Initiative

(photo 7) ABE Initiative participants having interviews with Japanese companies. Photo by JICA

The ABE Initiative (“African Business Education Initiative for Youth”) started in the autumn of 2014 through the Government of Japan which offers a scholarship of up to three years. At the same time, the program offers the participants the opportunity to receive internship training at Japanese enterprises for the purpose of their learning not only state-of-the art technologies and advanced skills but also the corporate culture and work ethics of Japan.

For detail, please refer to: The ABE Initiative (PDF) Open a New Window


Back to ODA Policies