New Communication on the Private Sector's role in development

I’m pleased to inform you about the adoption of the new Commission Communication on the private sector’s role in development: A Stronger Role of the Private Sector in Achieving Inclusive and Sustainable Growth in Developing Countries. This upcoming Communication was presented on the 28^th November 2013 during the Policy Forum on Development (PFD) in session 4. The Communication is based on extensive stakeholder consultations, with European and local private sector representatives, NGOs, partner governments, EU Delegations and relevant Commission services. Almost 200 written contributions received and analysed, and more than 40 events held all over the world.

We would like to express our sincere appreciation for your active participation and contributions to this consultation process. The result is a comprehensive document that sets out the future direction of EU policy and support for private sector development in partner countries. In line with the Agenda for Change, it also introduces private sector engagement as a new dimension in EU development policy and cooperation.

The Communication proposes 12 concrete actions in areas where the Commission believes it can add value and effectively complement actions by Member States and other development partners. These address better regulatory environments in partner countries, business development and access to finance, especially for job-creating micro, small and medium-sized businesses in the formal and informal sectors.

It identifies other areas, including sustainable energy and sustainable agriculture, where we use tools like blending to catalyse private sector finance and engagement to complement EU development assistance effectively.

It also encourages the private sector from partner countries, the EU and beyond, to engage in responsible investment, sustainable trade, inclusivebusiness models and other strategies as part of its core business to enhance economic opportunities for the poor and thereby achieve development aims.

Clear guidance is given for working with the private sector, so that public and private roles and interests are aligned and lead to measurable development results on the ground.

The adoption of this Communication is very timely since the priorities, approaches and actions it outlines will be operationalizeunder theprogramming exercise of the different instrumentsforeseen under the MFF 2014-2020.

I am also pleased to inform you that a report on the whole consultation process can be found in the following link: http://ec.europa.eu/europeaid/what/economic-support/private-sector/documents/psd-consultation-report-may-2014_en.pdf