Public Private Partnership
About Public Private Partnership
Nowadays, the role of investment by private sector has become more important for the economic growth of developing countries.
Various projects conducted by Japanese private sector 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 sector.
1. JICA SDGs Business Supporting Surveys
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. JICA SDGs Business Supporting Surveys is a program based on proposals from private sector. Through this survey scheme, JICA supports Japanese private sector, that seek to venture into developing-country markets, to test their products, services, technologies, and know-how for addressing development challenges to achieve SDGs in developing countries.
This program is reformed in order to improve convenience, drive commercialization and accelerate development impact in 2022. The program has three categories for different purposes and business phases: Needs Confirmation Survey, SDGs Business Validation Survey and SDGs Business Verification Survey. Under newly established two surveys (Needs Confirmation Survey and SDGs Business Validation Survey), JICA and consultants arranged by JICA support surveys. And under the SDGs Business Verification Survey, JICA commission surveys to companies These Surveys are also expected to invigorate the Japanese economy and regions, through supporting the expansion of SMEs’ businesses abroad, within the aforementioned objectives.
For detail, please refer to:JICA SDGs Business Supporting Surverys (PDF)
2. JICA Preparatory Surveys for Private-Sector Investment Finance
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)
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
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
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
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)