Private Sector Development

Danida’s support to the Private Sector in Ghana consists of two pillars. The Danida Business Partnership programme, and Support to Private Sector Development programme.

The Government of Ghana (GOG) has developed Ghana’s Medium Term Private Sector Development Strategy Phase II (PSDS II) with a clear vision of: “A thriving Private Sector – Creating Jobs and Enhancing Livelihoods for ALL”. The vision is to be achieved by fostering productivity improvements at the firm level as a prerequisite for effective competitiveness and sustained economic growth. Danida’s programme “Danida Business Partnership” (DBP) and “Support to Private Sector Development” (SPSD II) are well aligned with GOG priorities with the vision: 

The emphasis on “decent” jobs indicates that: the enterprise or farm generates a value added per employee/entrepreneur/farmer which allows for an income/salary that is decisively above the poverty line; the jobs generate production and services which are of value to society (which excludes e.g. crime, prostitution, some types of petty trade etc.); and the general labour conditions are satisfactory (e.g. occupational health and safety standards, social protection, gender equality, no utilisation of child labour etc.)

Danida’s two programmes have two different, but complimenting, approaches to support creation of sustainable and decent jobs. Danida Business Partnership aim at developing the private sector by supporting the establishment of long-term and mutually committing partnerships between Danish and Ghanaian companies, and SPSD II is addressing general challenges for the private sector, by focusing on business environment, capacity building and lack of access to credit for a number of stakeholders in the private sector.