Sweden

Inclusive Business in Development Cooperation of EU Member States

Institutional Setup

Swedish development cooperation is organised through the Swedish International Development Cooperation Agency (Sida) which operates under the jurisdiction of the Ministry for Foreign Affairs (MFA).

Sweden’s Policy for Global Development (PGD), provides the central framework for Swedish development cooperation and aims to create coherence and closer collaborations between all sectors of society in working towards achieving an equitable and sustainable global development. This entails engaging a range of different public and private actors such as national and local authorities, civil society, the private sector and trade unions.

Sida collaborates with the private sector, engaging corporate actors in thought partnerships to contribute to global poverty reduction and to promote inclusive and sustainable business models that enable people living in poverty to improve the quality of their lives. Discovering new and innovative ways to engage private sector actors in global development is not only seen as a mean to boost economic growth but also to leverage private sector resources that are valuable for reaching development objectives and poverty alleviation.

In addition to the MFA other political and governmental actors also take part in designing how inclusive business is part of the Swedish agenda. The Ministry for Enterprise and Innovation is responsible for issues involving business environment and innovation climate. The Swedish Innovation Strategy guides the Ministry’s work towards an innovation climate where different actors, including business sector, can contribute to solutions for both national and global challenges. Swedfund is a Swedish development finance institution that promotes sustainable economic development by co-financing investments and building businesses and industries that can combat poverty. Swedfund’s approach to poverty alleviation is to ensure economic growth and job creation. Sida and Swedfund have collaborated through Public Private Development Partnerships (PPDP) projects.

Inclusive Business in Private Sector Promotion

In 2010, Sweden established its Business for Development (B4D) programme to provide a framework for collaboration with the private sector. The programme consists of different instruments to be used for engaging private sector actors, including challenge funds and public private development partnerships. Inclusive business is considered a fundamental area of the programme and Sida has adopted inclusive business as one of its principles for private sector collaboration.

Sweden supports inclusive business initiatives bilaterally and regionally as well as globally. The main objective of Sweden’s development cooperation for sustainable economic development is to improve the opportunities of poor people to contribute to, and benefit from, economic growth. Involving more poor people in value chains through inclusive business initiatives is an important means of achieving this goal. Moreover, all inclusive business engagements should promote the priorities of the Swedish development cooperation, including gender equality, human rights, democratic values, and the environment.

Regional Focus

Sweden cooperates in various ways with different countries. In many countries, we have long-term cooperation, and maintain a direct dialogue with governments and agencies, in other countries we work through Swedish and international organisations. Today, Sweden maintains extensive long-term development cooperation with a total of 33-priority countries in Africa, Asia, Europe, and Latin America.

Publications

Innovations Against Poverty 2

Region
Global
Programme description

Objective:

To support social entrepreneurship and innovations by giving small enterprises the opportunity to receive grants in order to jump-start and develop their ideas. 

Activities:

The programme functions as a risk sharing mechanism for sustainable business ventures, which have a strong potential to reduce poverty.

Swedish Leadership for Sustainable Development (SLSD)

Region
Global
Programme description

Objective:

By initiating and coordinating the SLSD, Sida wants to be a relevant partner for the business sector and stimulate private investments that make a difference for people living in poverty and vulnerability.

Activities:

SLSD is a business network consisting of Sida and the leaders from more than 20 of the largest Swedish companies, which strives for sustainable development.

Business Call to Action (BCtA)

Funding
United Nations Development Programme (UNDP)
Ministry for Foreign Affairs of Finland (Formin)
The Dutch Ministry of Foreign Affairs (BZ)
Swedish International Development Cooperation Agency (Sida)
Swiss Agency for Development and Cooperation (SDC)
Department for International Development (DFID)
USAID
Implementation
United Nations Development Programme (UNDP)
Region
Global
Programme description

In addition to funding the initiative, Sida contributes to IB by engaging in dialogue and networking with the other BCtA funders.

Objective:

To accelerate progress towards the SDGs.

Activities:

Challenging companies to develop IB models, engaging people at the BoP as consumers, producers, suppliers, distributors, and employees.

Through BCtA, over 200 companies have committed to improving the lives and livelihoods of millions of people.

Asian Development Bank (ADB) project

Region
East Asia and Pacific
South Asia
Programme description

Objective:

To identify, fund, implement, and monitor inclusive business initiatives.

Activities:

Sweden co-finances an inclusive business initiative with Credit Suisse AG, the purpose of which is to provide technical assistance to ADB to help them identify, fund, implement, and monitor inclusive business initiatives.

Public Private Development Partnerships (PPDP)

Programme description

Objective:

To encourage companies to pro-actively develop business models that also benefit and create opportunities for people living in poverty.

Activities:

Sida engages in partnerships with private sector actors. Sida finances the projects jointly with the private sector actors who also have the organizing role in the projects.

Africa Enterprise Challenge Fund (AECF)

Region
Sub-Saharan Africa
Programme description

Objective:

The AECF is a private sector fund supporting profitable ways of raising rural incomes.

Activities:

Developing markets for products and services that meet the needs of people living in rural areas in Sub- Saharan Africa. Sida’s support to the AECF is aimed at the agri-business sector.