Basics of PSE
All SDC partnerships with the private sector must meet clearly defined criteria: respect for human rights, corruption standards, a shared vision and shared responsibility for the targeted impact, as well as clear outcome indicators and their monitoring.
The PSE approach taken by the SDC means joining forces with one or more private-sector partners on an equal footing, sharing benefits, costs and risks.
- Co-initiation: building the collaborative partnership together, including the development of innovative approaches to solving problems.
- Co-steering: all partners are equally committed to the success of the collaborative efforts. As a rule, both the SDC and the private-sector partner(s) involved in the PSE partnership also participate actively in the governing body.
- Co-financing: all partners must contribute financially and/or in kind.
PSE involves joint steering and financing, which makes it different from other forms of private-sector cooperation such as the awarding of contracts or projects that benefit local companies in SDC priority countries.
The SDC works with companies of all sizes, social and impact enterprises, impact investors and foundations. In principle, private-sector actors from all countries are eligible for PSE cooperation with the SDC. NGOs and academic institutions can also be involved in these partnerships.
PSE has considerable potential but it also poses challenges. The SDC makes every effort to mitigate risks and select partners carefully. A common risk management strategy is key, which is why the SDC has set up a comprehensive process based on best practices that must be followed throughout all its PSE partnerships.
Handbook: Private sector engagement (PDF, 80 Pages, 8.4 MB, English)
Flyer: Private sector engagement (PDF, 4 Pages, 889.0 kB, English)