Factsheet - Private sector engagement through triangular co-operation

1. FACTSHEET
PRIVATE SECTOR ENGAGEMENT THROUGH
TRIANGULAR CO-OPERATION
INTRODUCTION
Triangular co-operation is a modality that helps to achieve the 2030 Agenda and contributes to tackling today’s most
pressing economic, environmental and social challenges. Many countries and institutions choose to work trilaterally
because they want to make use of the comparative advantages of the different partners involved, strengthen
partnerships or scale-up proven solutions to development challenges. Triangular co-operation has shown to be innovative
and cost-effective. By transferring ownership to all partners from the outset and involving them at each stage of the
project cycle, triangular co-operation furthers deeper understanding of local contexts, offers co-created, sustainable
solutions to development challenges and promotes long-term partnerships.
The OECD has found that the overall number of triangular co-operation projects implemented globally, and between
multiple regions, has increased over time and that the actors involved have diversified. Although governments and
international organisations remain the primary actors, the private
sector stands out for its increased engagement in triangular co-
operation. Not least due to the need of moving from billions to
trillions to achieve the ambitious 2030 Agenda for Sustainable
Development, we can observe an increasing trend to engage the
private sector in development co-operation and in trilateral
initiatives.
The OECD is collecting information on triangular co-operation
projects that countries and organisations have reported on a
voluntary basis. The OECD project repository for triangular co-
operation currently counts 656 projects, 53 of which involve the
private sector (8%). Based on information from these projects, the
following three key messages can be identified.
KEY MESSAGE 1: TRIANGULAR CO-OPERATION WITH THE PRIVATE SECTOR SPANS LARGELY ACROSS
DIFFERENT REGIONS AND OFTEN INVOLVES DIFFERENT TYPES OF STAKEHOLDERS
The majority of triangular co-operation
projects that involve the private sector are
multi-regional (31%), i.e. projects that are
implemented among partners from two or
more regions – mainly in Africa and Asia-
Pacific. Overall, 26% of the projects were
in Latin America and the Caribbean (LAC),
19% in Sub-Saharan Africa, 17% in Asia-
Pacific, 7% in the MENA region (see Figure
1). This geographic concentration also
reflects current trends in the world of
social impact investing and
entrepreneurial engagement supporting
the SDGs, where a significant rise in
Figure 1. Regional distribution of private sector engagement in multiregional
triangular co-operation projects
Note: The above figures are based on data that was voluntarily reported to the OECD. ECIS is a regional
signifier comprising countries in the European Union, Eastern Europe, Southern Caucasus, Turkey and
Central Asian states.
LAC
26%
Africa
19%
Asia-
Pacific
17%
MENA
7%
Africa
13%
Asia-Pacific
12%
LAC
3%
MENA
1%
ECIS
2%
Multi-
regional
31%
Box 1. Te Mato Vai (2013-2017)
To upgrade the water supply infrastructure in
Rarotango, the governments of the Cook Islands,
China and New Zealand partnered with the civil
engineering and infrastructure company Opus
International Consultants, the Asian Development
Bank and the World Health Organisation (WHO). The
aim is to deliver high quality and reliable water
supply, which is critical for growing tourism and
safeguarding public health, also in terms of increasing
resilience to droughts on the Cook Islands. The
project had a budget of over USD 40 million.

2. FACTSHEET
PRIVATE SECTOR ENGAGEMENT THROUGH
TRIANGULAR CO-OPERATION
engagements can be observed across Asia and in Africa1
. Besides engaging with multiple regional partners, private sector
actors are also involved in joint initiatives with other non-state actors, such as academia, research institutions and
philanthropies. Almost half (47%) of the projects that private sector actors are engaged in, include one or more other
non-state actors, mostly from civil society (25%).
KEY MESSAGE 2: TRIANGULAR CO-OPERATION WITH THE PRIVATE SECTOR MAINLY FOCUSES ON
INFRASTRUCTURE DEVELOPMENT AND GOVERNANCE ISSUES
The private sector is a natural partner in projects related to infrastructure development (see Box 1). Therefore, it is not
surprising that the energy sector (19%), and water supply and sanitation
(8%) attract private companies to partner with governments in triangular
co-operation projects (see Figure 2). In the energy sector, partners often
focus on providing logistical support to enhance access to energy services
in areas where it is most lacking. Hence, 80% of energy-related projects
were implemented in Africa. Many of these projects relate to harnessing
solar energy and laying electrical grids - only one brown project
supporting fossil fuels was reported.
Government and civil society is the second largest sector
(17%) and projects focus on sharing knowledge, best
practices and advancing collaboration on drafting policies
for an enabling environment for partnerships among
governments and the private sector (see Box 2). In the area
of business and other services (13%), promoting fair trade
(see Box 3) and establishing business opportunities or
platforms (see Box 4) are common.
It is worth noting that 42% of the projects that the private
sector engaged in follow a green agenda. These are
concentrated in the sectors of energy (36%), tourism (18%)
and water supply and sanitation (14%), which includes the
area of waste management.
1 Aspen Network of Development Entrepreneurs (2016), “State of Small & Growing Business Sector: 2016 Impact Report”,
Washington D.C.
Figure 2. Sectoral focus of private sector actions in
triangular co-operation projects
Note: Figures are based on data that was voluntarily reported to the OECD
Energy
19%
Urban
Development
4%
Government
and Civil
Society
17%
Business
and other
services
13%
Agriculture
and Food
Security
13%
Tourism
9%
Water supply
and sanitation
8%
Other
9%
Social infrastructure and services
8%
Box 4. Fair Trade Promotion (2009-2013)
Six fair trade groups and craft associations from
Bangladesh, India, Nepal and Thailand, together with
the government of Norway, strengthened the
dissemination of fair trade products in both fair trade
and mainstream markets through the WFTO Fair Trade
System and by engaging in policy advocacy. The
budget was between USD 1 and 5 million.
Box 3. ANTAD.biz Platform (2015-2019)
The National Retail Association of Mexico (ANTAD), together with
the governments of Germany and Honduras and Guatemala,
contributed to the competitiveness of SME suppliers in the
production chain by incorporating best practices in environmental
sustainability and expanding the ANTAD.biz platform along with its
environmental component. The budget was between USD 500
0000 and USD 1 million.
Box 2. Youth Employability (2014-2016)
The social entrepreneurship firm Entrena
(Dominican Republic), together with the
governments of Chile and the United States,
contributed to the training of
entrepreneurship instructors in two
municipalities in the Dominican Republic. The
project had a budget below USD 100 000.

3. FACTSHEET
PRIVATE SECTOR ENGAGEMENT THROUGH
TRIANGULAR CO-OPERATION
KEY MESSAGE 3: THE MAJORITY OF TRIANGULAR CO-OPERATION PROJECTS WITH THE PRIVATE
SECTOR ARE NEITHER COSTLY NOR TIME-INTENSIVE
Of the projects that were reported in the OECD’s database, 55% had a budget below USD 1 million. Cost sharing among
the different countries and actors involved was common among half of the respondents. Interestingly, in triangular
co-operation, longer projects do not necessarily equate to larger investments: overall, only 19% of triangular projects
lasting more than four years have a budget above USD 5 million. This is similarly applicable to triangular co-operation
projects involving the private sector: only 4% of projects have a budget between USD 1 and 5 million (see Table 1).
Table 1. Budgets of triangular co-operation projects with private sector engagement compared to the budgets of all
reported triangular co-operation projects
Budgets of triangular co-operation
projects
No. of projects
with PSE
% of projects
with PSE
No. of projects
overall
% of projects
overall
< USD 100 000 8 15% 131 20%
Between USD 100 000 and 500 000 8 15% 128 19.5%
Between USD 500 000 and 1 000 000 13 25% 106 16.2%
Between USD 1 000 000 and 5 000 000 16 31% 112 17.1%
Between 5 000 000 and 10 000 000 2 4% 19 2.9%
> USD 10 000 000 2 4% 26 4%
Total 52 100% 522 100%
Note: No budget data was available for 134 projects overall and for one involving the private sector.
The private sector does not only provide significant resources that could help scale up triangular co-operation projects in
the long term, but it is also a source of creativity with the potential to innovate. In fact, representatives from the private
sector are increasingly adopting approaches and business models that focus on profitable solutions to development
challenges by targeting new markets and customers. Development partners can support business by identifying unmet
societal needs, under-served populations as well as areas in developing countries. This support contributes to increasing
the knowledge of local contexts and capacities. At the same time, development partners may facilitate the process of
creating enabling conditions, addressing market failures and harnessing creative solutions. More and more, they also
provide finance and guarantees to reduce the risk to start operations in new challenging markets2
.
According to the data collected in the OECD online project repository, 42% of triangular projects involving the private
sector have a life span between 2 and 4 years. In fact, 50% of these last less than 3 years, while only 9% last more than 7
years. This trend is the same for the overall triangular co-operation projects which were reported to the OECD (see Table
2). The vast majority of these projects were initiated in 2014.
Table 2. Duration of triangular co-operation projects with private sector engagement (PSE)
Duration of triangular co-operation
projects
No. of projects
with PSE
% of projects
with PSE
No. of projects
overall
% of projects
overall
Under 12 months 4 8% 89 14%
Between 12 and 24 months 9 17% 72 11%
Between 25 and 48 months 22 42% 301 46%
Between 49 and 84 months 11 21% 96 15%
Above 85 months 5 9% 33 5%
Total 51 100% 592 100%
Note: No data was available for the duration of 64 projects overall and for two involving the private sector.
2 Global Partnership for Effective Development Co-operation (2018), “Effective private sector engagement through development co-
operation”, Issue Paper: Background for Consultations, Paris/New York.

4. FACTSHEET
PRIVATE SECTOR ENGAGEMENT THROUGH
TRIANGULAR CO-OPERATION
CONCLUDING REMARKS
Given the need to mobilise enormous investments to achieve the 2030 Agenda, the private sector plays an important
role in helping scale up triangular co-operation projects to enhance their reach and, ideally, their impact in the long term.
In today’s generation of triangular co-operation, many projects already have a multi-stakeholder nature. Nevertheless,
there remain several gaps:
 Awareness: There is a need to raise awareness among the private sector for the benefits of engaging with
development partners. It is crucial to showcase the impacts of private sector engagement through development
co-operation in terms of results for communities and businesses. This can contribute to building trust across
sectors by demonstrating accountability for impact 3
.
Likewise, some governments have already started working
systematically with the private sector in development and
triangular co-operation (see Box 5), and these efforts could
be expanded.
 Communication and dialogue: Creating and maintaining
partnerships among the private sector and development
actors requires speaking each other’s ‘language’, i.e.
understanding objectives and agreeing on common
frameworks. Experience of working in triangular
co-operation on the ground can lead to a better mutual
understanding and foster interest in the type of
partnerships that are fit to work in today’s changing
development architecture.
 Evidence and data: Increasing tracking and documenting
initiatives would increase awareness and understanding.
Based on triangular co-operation data that was voluntarily
reported to the OECD, private sector actors are growing
contributors to triangular co-operation projects across the globe and help to drive the achievement of green
goals. Yet, this is only a first glimpse at triangular co-operation with the private sector and more evidence and
data on the results of these partnerships are needed.
 Scaling-up: There is potential to scale up the engagement of the private sector in effective triangular
partnerships. For instance, the private sector could contribute seed money to partners that want to ensure a
quick start to projects or invest in re-vitalising existing partnerships by leveraging funds and expertise to grow
the initiative further.4
3 Global Partnership for Effective. Development Co-operation (2018), “Effective private sector engagement through development co-
operation”, Issue Paper: Background for Consultations, Paris/New York, p.23.
4 This factsheet was prepared by Rebecca McKimm and Nadine Piefer from the Foresight, Outreach and Policy Reform Unit of the
OECD’s Development Co-operation Directorate.
Box 5. UAE’s Technical Co-operation Programme
(2017-date)
The UAE has been exploring how to involve the
private sector through triangular co-operation and
has set up the UAE’s Technical Assistance
Programme, which aims to share the key lessons
from the UAE’s private sector by providing
technical co-operation to partner countries and
with the private sector as pivotal partner, including
through triangular co-operation. Projects are
concentrated in the sectors where the UAE has a
demonstrated comparative advantage, namely: (a)
transport and infrastructure development; (b)
energy and sustainability; (c) governance; and (d)
services for the finance, trade,
telecommunications and tourism sectors.