Worldwide—Trade, Private Sector Development, and Engagement (TPSD/E) Facility

Trade and private sector engagement are recognized as key drivers for poverty reduction through their capability to spur growth and investment, create good-quality jobs, and generate tax revenues to fund public services. However, experience shows that improved market access alone is not always sufficient for sustained economic development. Access often needs to be complemented by policy measures that support lasting and equitable prosperity.

The Trade, Private Sector Development, and Engagement (TPSD/E) facility was established by the European Commission to support the implementation of its 2014 Private Sector Communication, and to shape and implement new policy orientations, in particular geared toward the European Union’s External Investment Plan (EIP). By leveraging financial assistance and guarantees and supporting improvements to the business environment, the EIP aims to catalyse private sector investment in partner countries in Africa and the European Neighbourhood and contribute to meeting Sustainable Development Goals.

With the TPSD Facility, DAI provides technical expertise to EU staff working on private sector and trade in Brussels and worldwide, creates and shares knowledge inside the institution, and supports the visibility of the European Commissions’ Directorate General for International Development Cooperation (DEVCO).

Sample Activities

• Design and support the implementation of a Private Sector Engagement Action Plan for DEVCO.

• Mobilize and manage short-term technical expertise for in-country assignments.

• Build the capacity of EU staff on investment climate, supporting micro and small enterprises, the private sector and trade, and the External Investment Plan.

• Design a business environment reform diagnostic toolkit.

• Deliver technical expertise to DEVCO on private sector development and engagement, using DAI’s in-house global expertise.

• Showcase EU projects and explain the External Investment Plan to a wider audience.

Select Results

• Organised in-country short-term assignments for EU Delegations on the investment climate and the identification of potential investment opportunities.

• Conducted a survey of the state of the structured dialogue with the private sector in Sub-Saharan Africa.

• Designed Business Environment Reform Guidelines for EU staff.

• Provided regular training on the private sector and trade and the External Investment Plan through classroom, remote, or recorded training sessions.

• Developed the EIP in Practice e-learning modules.

• Produced “EIP Stories” short videos.