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Government needs to create an

Enabling Environment for Private

Sectors Survival

Among many things performed by government, development projects and programmes.
one of its key functions is to create an enabling
environment for private sector to thrive. The spin- The private sector in developing countries faces
off of a thriving private sector will be unprecedented many constraints in such areas as finance,
national economic growth, low levels of infrastructure, employee skills, and the investment
unemployment, elimination of abject poverty and climate. IFIs focusing on private sector development
inequity. When these objectives are achieved can help address these constraints and can be
the nation will achieve social cohesion, better most effective by targeting high impact sectors
quality of life and most critically national pride. It is and projects, ensuring sound business practices,
common knowledge that developed nations have leveraging partnerships, and focusing on segments
all achieved increased economic growth through where IFI assistance is needed most. The value
the private sector. that IFIs bring to a project beyond what a Private
Financial Institution can offer, is the greatest.
Growth, poverty reduction, and improving people’s
lives requires a vibrant private sector. South International Development Finance Institutions
Africa, as a developing nation, has recognized have reached significant scale in global private
this as reflected in the well-publicised National sector finance and achieved notable success in
Development Plan. The world over, Governments projects and key sectors. Over the past decade, IFIs
recognize that there are still enormous challenges have achieved substantial growth in private sector
in increasing inclusive growth, reducing poverty, operations. Current results measurement systems
and improving people’s lives. show positive development outcomes in terms of
returns to the economy, environmental and social
Private sector has a key role to play in addressing performance, private sector development, financial
these challenges by supporting inclusive growth, returns, and people reached. IFI projects have
poverty reduction, job creation, and access to had significant impact on job creation, connecting
critical goods and basic services and by providing people via infrastructure and communications,
tax revenues. reaching small and medium enterprises (SME’s),
generating government revenues, providing health
Multilateral Development Banks and Bilateral care and education and assisting farmers.
Development Finance Institutions (commonly
called International Financial Institutions (IFI’s) Additionally the broader impact and effects of IFI
play a significant role in supporting the private investments can be seen in various infrastructure,
sector in developing countries. They provide critical financial systems, agribusinesses, SME’s,
capital, knowledge, and partnerships; help manage inclusive business models, and the investment
risks, and catalyse the participation of others. IFIs climate. To maximize development impact, public
support the kind of entrepreneurial initiatives that and private sector policies for each country need
help developing countries to achieve sustainable to be coherent and complementary. There needs
economic growth. They support the private sector to be a virtuous circle between public and private
gaps in finance, knowledge, and standards and undertaking to maximize development impact and
endeavour to create high impact, sustainable ensure inclusive growth.

CESA Aon Engineering Excellence Awards 2014
Category: Best International Project of the Year

Winner: Jeffares & Green as part of the Lowlands Waterworks
Joint Venture for the Metolong Dam Pedestrian
Bridge for the Metolong Authority (Lesotho)

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