Private Sector Engagement (PSE) is a USAID strategic approach to planning and programming through which USAID consults, strategizes, aligns, collaborates, and implements with the private sector for greater scale, sustainability, and effectiveness of development or humanitarian outcomes.1 According to the USAID PSE policy launched in 2018, the Private Sector (PS) is an embedded stakeholder in driving development outcomes and promoting local sustainable capacities.
This assessment collected and reviewed performance data and information on the development results and progress of USAID/Colombia’s engagement with the private sector, creating a USAID/Colombia PSE story and identifying ways to strengthen PSE reporting. It assesses the experience of USAID/Colombia in strengthening PSE between 2015-2020. Since 2015, and prior to the release of the PSE policy, USAID/Colombia has engaged the PS in the implementation of development projects. Effective and sustainable access to private sector know-how, expertise, networks, and resources contribute to the improvement of social and economic quality of life for USAID/Colombia beneficiaries.
The assessment found that between 2015-2020, USAID/Colombia achieved 531 PSEs through social and economic development projects, 521 of these PSEs were realized through 25 USAID activities. The remaining PSEs were a remarkable result of USAID/Colombia efforts, which resulted in the development of 10 Global Development Alliances (GDAs) with PS stakeholders to promote private investments in conflict affected regions and focused on disadvantaged populations. Through these 531 PSEs, USAID/Colombia engaged with 260 PS stakeholders across various economic sectors in Colombia.
Through PSEs established between 2015-2020, USAID/Colombia mobilized USD $1 billion and leveraged USD $224 million from the PS. Eighty percent of PSEs were commercially beneficial to business partners by improving capacity, quality, or productivity in 454 productive units and 83,000 hectares, and increasing sales by USD $40 million.3 In addition, 60 percent of PSEs provided an indirect strategic benefit to business partners (facilitating exports by USD $1.3 million and strengthening the labor market by creating 2,333 jobs).
The assessment identified that one of the main objectives of the USAID/Colombia PSE team has been to shift the focus of the relationship with the PS from a philanthropic model to one based on marketoriented solutions. More than a donor, the PS should play a role as a co-creator of solutions that benefit the development of populations in USAID/Colombia targeted regions.
The results of this assessment help inform future data collection needs, identify how to communicate key data to critical stakeholders, strengthen PSE storytelling, and highlight key issues related to PSE analysis for upcoming portfolio reviews and other collaboration, learning, and adapting (CLA) opportunities. The assessment also provides quantitative and qualitative evidence to answer the PSErelated learning questions of the USAID/Colombia Learning Plan.
