Large Domestic Companies

Sub-principle 2.A

Focus on maximising sustainable development results


Why is it important?


Development finance will be granted to those private partners that can demonstrate the highest expected impact on beneficiaries, including return on investment. Domestic firms are often well-placed to deliver wide-scale targeted impact to vulnerable populations at country level due to their wide reach, type of products/services, local networks, and leveraging of economies of scale and scope. By focusing on maximising the desired development outcomes, they can successfully position themselves as attractive partners for development partners and national governments. Scalable market solutions can be an effective means to expand investments for sustainable development, including environmental and climate action or the creation and defence of global public goods. Focusing on sustainable development results is hence the best bet for domestic firms to co-operate with development actors and accomplish their own ambitions for testing new markets or products, enhancing their reputation, and bringing transformational change.

Self-reflection questions
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  • Are your activities and the targeting of your interventions towards specific sectors, markets and groups such as youth, women or populations particularly vulnerable to the impacts of climate change informed by the Sustainable Development Goals and Paris Agreement?
  • Is the value added and responsibility of each partner clarified from the outset of any project you are engaged in with international development partners? Have you made your own net value gain explicit?
  • Do you collect data from your business operations that can help governments and development partners understand which sectors, markets and populations such as youth, women or populations particularly vulnerable to the impacts of climate change to target to maximise development results? Do you use such data to understand the context you are working in, in relation to sustainable development results?

Actions to consider
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  • Ensure development co-operation projects and programmes in which you participate focus on sectors, markets and populations such as youth, women or populations particularly vulnerable to the impacts of climate change, which are critical for development outcomes, as identified by the SDGs and the Paris Agreement. 
  • Communicate to governments and development partners the main bottlenecks and challenges to be addressed that have hindered you from maximising your results.
  • Use business associations to facilitate dialogue amongst the private sector, including with MSMEs, to develop a common position on expected results. This could include a clear articulation of where support is needed the most to maximise development results and identification of opportunities for engaging with development partners, the government and other social partners. 
  • Understand and utilise the range of development co-operation modalities available to you beyond finance, including technical expertise and knowledge transfer.

Pitfalls to avoid
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  • Focus uniquely on direct, short-term impact, forgetting indirect social or environmental outputs and their long-term implications.
  • Concentrate on sectors, markets and populations that only provide a financial value, thus forgoing the value of social and environmental impacts.
  • Overlook development needs and business opportunities after a project is finished.


The Egypt Entrepreneurship Program consisted of funding, accelerators, entrepreneurship service centres, and legislative and regulatory reforms. As part of the initiative many incubators such as the Technology Innovation and Entrepreneurship Centre (TIEC) have been established to encourage start-ups and cultivate entrepreneurship in Egypt.


Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org

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