KAMPALA PRINCIPLE 5:DPs_SUBP 5.A
KAMPALA PRINCIPLE 5 - LEAVE NO ONE BEHIND
Development Partners
Sub-principle 5.A
Ensure that a private sector solution is the most appropriate way to reach those furthest behind
Why is it important?
Partnerships with the private sector bring about additional finance and expertise to solve development challenges. When planned well, with strong local ownership, agreed exit strategies and sound business cases, they can also ensure the sustainability of the intervention long after a project is finished. Nevertheless, not all development objectives require a partnership with the private sector. Prior analysis, based on a clear problem definition, a simple theory of change, and consultations with local actors and governmental partners, are critically important to identify where a private sector solution is more appropriate than a partnership with other actors or direct investment by the development partner to achieve the desired development outcomes. Clearly communicating the added value of business or private sector solutions is also vital to build trust and ensure transparency and accountability.

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COUNTRY-LEVEL EXAMPLES
The Swedish International Development Agency’s (SIDA) PSE approach is to identify development objectives first then find the best possible partners to realise these results. One approach to systematically assess different partners is the cascading approach suggested by the World Bank Group in the context of finance mobilisation. In the case of SIDA, private partners are only chosen when doing so would clearly be preferable to all other alternatives, and where a private sector solution is most likely to produce the intended development results (see p.58). SIDA does not consider partnerships with the private sector to be an objective unto itself, but rather a means to an important end in meeting developmental objectives.