Sustainable Industrialization for Shared Prosperity
Public Private Partnership in the era of post-2015 Development Agenda

Partnering with the Japanese Private
Sector for achieving Inclusive andSustainable Industrial Development

Tidiane Boye
Industrial Development OfficerPartnership and Results
Monitoring BranchPresentation outline• UNIDO’s Approach on Inclusive Sustainable Industrial
Development Approach• Building concrete and new business and partnership
opportunities with the Private Sector: The PCPs
• Private sector Involvement in UNIDO’s TC Projects• The Programme for Country Partnerships and theinvolvement of the Japanese Private Sector

UNIDO’s new approach for ISIDThe Inclusive and Sustainable Industrial Development (ISID) constitutes the coremandate of UNIDO in the framework of the United Nations post-2015 development
agenda, through the Lima Declaration;
The ISID key pillar is to help countries to achieve higher level of industrialization in
their economies and to benefit from the globalization of markets for industrial goodsand services;
ISID calls for greater partnerships with all relevant development actors to combine
their knowledge and their resources for the purpose of maximizing the development
impact“To achieve inclusive and sustainable industrial development
for our member states (…) we need to develop stronger
partnerships to make our development impact even bigger.
This means further expanding strategic partnerships (…) alsowith private sector companies.”
Li Yong, Director General of UNIDO
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UNIDO’s new model of intervention: The ISID Partnership approach
The rationale of UNIDO’s partnership approach: Extend beyond the stand alone grant-funded, capacity-building assistance and create
strategic links between industrialized and developing countries.
 Develop an integrated strategy on partnerships and achieve larger flows of resources for
ensuring sustainability and stronger support to national strategies and priorities.
 Test, codify, standardize and replicate the new partnership-based business model.
 Contribute to the further improvement of efficiency and effectiveness of traditional
technical cooperation deliveries.
 Monitor and report the impact of partnerships.

The ISID Partnership approach will be implemented through the Programs for Country
Partnership (PCPs) through collective actions with local and international
development partners, including private sector.
5Building concrete and new business and partnership
opportunities with the Private Sector: The PCPs
UNIDO’s new business and partnership model: Programmes for Country Partnership (PCPs);

PCP implementation principles:
1.
2.
3.
4.

A strong country ownership and alignment with national industrial plans;
A clear reflection of UNIDO’s ISID objectives;
An opportunity to deploy a multi-disciplinary and integrated array of UNIDO services;
Rigorous monitoring and reporting mechanisms towards PCP stakeholders to measure theconcrete benefits and tangible results
5. A close alignment with national resource mobilization strategies and the potential to scale
up technical cooperation services through the establishment of partnerships;

Private Sector’s essential role in implementing and leveraging the PCPs:
 Unleash business core competencies (expertise, networks, resources, investments) fromprivate companies to amplify the development impact in PCP countries
6Implementing the Partnership Approach with the Private
Sector in the framework of the PCPs (1)The PCPs aim at scaling-up investment to maximize the development impact throughpartnerships:
 Create partnership with the Private sector and Development Finance Institutions to attract
large scale investment for job creation, improve market access and increase export earnings;

 Synergize with projects of technical and financial partners, private sector and Government for
efficient and sustainable resource mobilization and allocation

Two PCP Pilot Countries: Ethiopia and Senegal
 Two main priority areas of interventions: the establishment of industrial zones and agroindustry sector development
 Strengthened by cross-cutting interventions including energy, environment, innovation, tradefacilitation, investment promotion, South-South and triangular cooperation towards thedevelopment and the upgrading of national and local private sector;
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Implementing the Partnership Approach with the PrivateSector in the framework of the PCP-ETH (2)•••Sectors selected based on their potential for job creation, strong linkages tothe agricultural sector, export potential and capacity to attract investment
Integrated service provision by different UNIDO branches in the focus areas
Aligned with the priority sectors of the Government and other partners
8Implementing the Partnership Approach with the Private
Sector in the framework of the PCP-Senegal (3)9Partnering with the Private Sector: An example withUNIDO, Africa and the private sector
What are the needs of the private sector in Africa?
• Technology transfer, Investment, Finance, Energy, Environment, Social Health andEducation

What are the UNIDO tools to support partnerships with the private
sector in Africa?
• AfrIPANet, Investment Monitoring Platform, SPX Network, COMFAR, Centres for
Resource Efficient and Cleaner Production• Through these instruments, UNIDO provides information to private sector, as wellas accompaniment and aftercare services through IPAs, network of private sector
associations and ITPOs
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UNIDO’s approach for partnering with the privatesector
Partnership
ProposalCorporate
Screening

Commitments andAccountability

Areas of cooperation

Due diligence•Poverty reduction
through productive
activities•Review
company profiles
againstenvironmental,social &governancecriteria

Design partnership model:•Trade capacitybuilding•Energy andenvironment•Roles andresponsibilities•Joint funds
mobilization

Scale-up theimpact

Up-scaling•Best practice
sharing•Expandgeographic &content scope•Roadmap &KPIs•Results
measurement

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UNIDO’s recent partners from the private sector:

12Partnership Example | AEONOBJECTIVE• Enable suppliers to gain access to new market opportunities,
increasing the availability of safe and sustainable products
GEOGRAPHIC SCOPE• Malaysia
RESULTS & OUTLOOK• Increased productivity of small-scale food processors to meet
AEON’s quality & safety standards• Capacity built for 100+ SMEs
• Roll-out to Asian region in (non-)food upgrading programmes

13Partnership Example | Komatsu
OBJECTIVE• Upgrading the training infrastructure to modern Industry needs
that will enable youth to benefit from employment opportunities
GEOGRAPHIC SCOPE• Liberia
RESULTS & OUTLOOK• Established vocational Training infrastructure for youth• Employment opportunities• Qualified heavy equipment operators• Stability in the country through facilitating a more productiveworkforce

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UNIDO’s instruments for private sector: AfrIPANet
The African IPA Network (AfrIPANet) was established in 2001 with initially 10 countries
and currently includes 43 IPAs and 49 country members. AfrIPANet developed the 1stAfrican Investor Survey, initially covering 4 key countries, first in 2001 and has since
been extended to 22 additional countries;

Within the framework of AfrIPANet, UNIDO has implemented fully-fledged Capacity
Building and Investment Promotion Programmes for reinforcing African IPAs as oneshop-centers for domestic and foreign investors, including: Capacity building for investment policy development; Service upgrading with the creation of new financing unit for SMEs and enterprisedevelopment; Investment Generation Campaigns through specific Investor Forum activities.

In the coming years, AfrIPANet aims at improving the capacities of IPAs in mobilizing
domestic and foreign quality investments that promotes ISID;
Within AfrIPANet, the Investment Technology Promotion Offices (ITPOs) are focal points
for assisting domestic and foreign investors.
15UNIDO’s instruments for private sector: the IMP (1)In 2010 AfrIPANet has integrated the online web based tool, the Investor Monitoring
Platform (IMP), as a one stop data source for investors interested in AfrIPANet member
economies and as a interaction tool between foreign and domestic investors and IPAs;
The detailed data are based on statistical sample of 7000 companies surveyed in thetargeted countries, including 300 variables are available for each company:
 Investment Characteristics : The size (Employment, Sales, Assets);
 The ownership (Foreign, Domestic, Joint Venture); Investment Motivation (Raw materials, Markets, Low cost & Export); Performance measures:
 Profit, Profit rate before taxes, Labor and capital productivity, Past and future
investment, the Growth (for investment, employment, sales, exports);
 Impact indicators:
Employment, wages, Local partners, Local content, Supplier development, Taxes,R&D;
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UNIDO’s instruments for private sector: the IMP (2)The IMP enables to: Provide an interactive data visualization
toolkit (histograms, bar, pie, bubble charts,heatmaps) for analyzing investment trends inAfrica;
Quickly research different types of investors,
their performance and development impact;
 Establish a common data source for thedifferent stakeholders in the arena ofinvestment; Unite these stakeholders around a commonshared vision to promote investment throughthe exchange of findings and ideas andencourage inter-institutional and publicprivate dialogue;
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UNIDO’s instruments for private sector: the IMP (3)IMP’s online Business Finder is a database of more than 5000 verified companies andinvestors operating in Africa registered with contact details. Companies can be foundand contacted through specific criteria (company description, product descriptions,sector, size, location).

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UNIDO’s instruments for private sector: the IMP (4)An example of an investment analysis: Last major Investments in Africa, by Country

Values are plotted according to adata-interval-scheme, computed
on-the-fly
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UNIDO’s instruments for private sector: the IMP (5)The IMP allows investors and companies to explore and provides insights to important
aspects, such as:
 The understanding of investment trends in different countries to identify proper
business opportunities and partners;
Who is going where? Which policies are benefiting investor performance? Whichsectors are strong and developing quickly? What attracted other investors to a location?

 Relating last major investments to the most important incentives provided(training, capital grants, infrastructure…) or investment services provided andtheir quality during the different investment phases; Benchmarking investors’ operational indicators against averages and theidentification of gaps that can provide investment opportunities;

 Identify gaps that can provide investment opportunities and get to know
investor perceptions and needs.
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UNIDO’s instruments for private sector: the SPX

Subcontracting and Partnership Exchange (SPX) gathers an international database ofsupplier profiles and supplier benchmarks within specific industrial sub-sectors to linksuppliers and buyers and leverage large investors and public procurement towards
SME development;
SPX tools include: SPX profiling and matchmaking: the profiles of the areas of activities (equipment,processes, products) capacities of SMEs are generated to be promoted among buyers;
 SPX Benchmarking: Comparison of the operational performance of a company and its
business practices with those of other companies of similar size and type in order to assess
the quality of the businesses in relation to international practices
 Supplier Development: Capacity building support for SMEs in their upgrading process,responding to the needs indentified by the benchmarking diagnosis

SPX activities include the establishment of SPX Unit, capacity building and training forprivate sector associations, sensitization of local companies (suppliers and buyers),
Database of benchmarked suppliers and buyer requirements linked to the IMP, SPX
Meetings, study tours and delegates programmes with selected ITPOs21

UNIDO’s instruments for private sector: COMFARUNIDO’s Computer Model for Feasibility Analysis and Reporting (COMFAR) is asoftware that aims at assisting private and public stakeholders for project appraisal
and feasibility analysis by facilitating short and long term analysis of financial andeconomic consequences for industrial and non-industrial projects;

COMFAR activities include: Capacity building in identification, preparation and appraisal of investment project
portfolio; Strengthens national and regional capacity trough training for trainers schemes;
 Improvement of standards of pre-investment studies and bankable documentation(updated software, guidelines, documentation);
Training programs tailored made to strengthen managerial and analytical needs ofcompanies and institutions; Assistance in preparation and evaluation of investment project portfolio, pre-investmentstudies;Provision of tools, software and methodological advice.
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UNIDO’s instruments for private sector: ITPONETWORK and ITPO Tokyo

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Implementing the Partnership Approach with thePrivate Sector in the framework of the PCPs
Advantages of the PCPs for the Japanese Private Sector•

Clearly defined priority sectors and areas for Private sector involvement•

Incentive package for Private Sector operations•

Concentration of financial, technical and human resources in the PCPs priority sectors•

Existence of coordination mechanism and dialogue platform with Government, local Private Sectorand Partners•

Secured framework for Private sector interventions•

Upgrading of business support services•

Clearly identified investment opportunities
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Implementing the Partnership Approach with thePrivate Sector in the framework of the PCPs
• Investment opportunities are now being identified within the two PCPs.
• The definition of the incentive package and investment profile development areundertaken and will be finalized in September 2015 in order to identify strong
business opportunities for private investments in key sectors.

• The private sector is a key operational partner and is constantly involved in thedesign, the implementation and the monitoring of the PCPs.
• The private sector is also greatly involved into PCP national coordination
mechanisms and has an crucial role within National Task Forces, Steering
Committees, and Partner and Donor Working Group set-up for the Programme25Implementing the Partnership Approach with thePrivate Sector in the framework of the PCPs
• ITPO Tokyo• PCP Promotional campaigns• COMMUNICATION AND INFORMATION: The Web-based UNIDO ISID Operation
Platform Updated information on the PCP Countries Status of implementation PCPs
 Investment and business opportunities
Private Sector information

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Thank you for your attention