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Relationship brokering

The new wave of private sector partnerships

Non-funding development partnerships:

The United Nations, along with many global development organizations has embraced private sector partnerships quite aggressively since 2005. The most attractive role for many global development agencies is a non-funding partnership. This can be either as unpaid program participants or as paid consultants. Development organizations in private sector partnerships can offer:

» Expertise and strategies, from participation in similar initiatives in other developing countries.

» A public forum, which can be leveraged for local government endorsement, industry peer group participation, direct shareholder confidence and other PR/IR benefits.

» Facilitation with key actors in government and among the international aid and development communities for licensing, tariff reductions, indirect financing, and other tangible support.

» Direct technological assistance.

» Empowered networking with other agencies and organizations, global vendors and technology leaders

» Export support, for entering new developing and developed markets, once critical mass is achieved locally.

Program funding and development of community finance

Finance without partnership is simply debt. To make a difference in challenged developing markets, requires pooling technology, knowledge and capital.

Funding and venture financing partnerships:

Access BoP has a very strong network of aid and development agencies from many developed countries, as well as international development banks, venture firms and equity finance brokers.

Clients may not need capital from a venture partner, but intelligent capital comes with an enabling network, access to technological assistance and the credibility of globally acknowledged financial institutions.

Lately, there has been an aggressive push by UN System Programmes, Agencies and Funds and by other global and regional organizations to embrace private sector partnerships.

What these organizations bring to such profit-based programs, beyond sharing financial risk (sometimes reducing cost burdens and thereby enabling subsidies), is public visibility and endorsement (PR value), a high level of experience with similar projects, technological expertise and powerful enabling networks.