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Support to Private Sector Development Programme; phase III (SPSD III)

The SPSD III is Danida’s third and final programmatic cycle of support to Ghana’s private sector as Denmark is phasing out development aid to Ghana and embracing more commercial collaborations at the end of 2020.

The objective of the SPSD III programme is the “promotion of inclusive and greener economic growth through private sector development leading to increased income and better welfare of Ghanaians”. The programme consists of four different development engagements, which have all been formulated with a human rights based approach whiles ensuring that the support is demand driven (based on a demonstrated need and a potential to increase income, productivity or to create employment). The programme was initiated in July 2016 and will run until December 2020. It has a budget of Danish Kroner (DKK) 140 million (approximately USD 20 million) of new funding from the Danish Government.


Engagement A – Business Sector Advocacy Challenge Fund III

The Business Sector Advocacy Challenge Fund III (BUSAC III) backs the overall objective of the SPSD III by empowering private sector organisations (PSOs) to pursue issues which affect the performance of their members and their business environment. This is done by enhancing the advocacy skills of the PSOs to influence the government and other duty bearers to create a better business enabling environment. In addition to this, BUSAC III seeks to promote platforms for private-public dialogue. As a new initiative, a window under BUSAC III has been dedicated to post-advocacy actions to promote the implementation of new policies and laws. 

Danida is implementing BUSAC III in a delegated cooperation agreement with its co-donors, the EU and the USAID. However, the EU is exiting the programme at the end of 2018.

Engagement B – Skills Development Fund II

The Skills Development Fund II (SDF II) contributes to the achievement of the programme objective by increasing labour productivity, income and product quality through a demand-driven skills development fund. The fund is dedicated to short-term skills training for workers in the formal sector, upgrading the skills of master craftsmen and workers in the informal sector, support of new, innovative training, as well as support to training and coaching of management and supervisory staff. The SDF is implemented through an international company contract. The Council for Technical and Vocational Training (COTVET) is a partner to the programme and will be supported in conducting capacity assessments of training institutions, planning and implementing training-of-trainer programmes and assisting the grantees with the implementation of planned activities.

Engagement C – The Rural Development Fund

The Rural Development Fund (RDF) contributes to the achievement of the overall goal of the SPSD III by providing financing mechanisms for private sector companies and entrepreneurs especially in rural Ghana. The RDF seeks to ease the liquidity and capital constraints on financial institutions in rural areas by providing guarantees, and term credit facilities to banks or financial institutions to support MSMEs especially those in the agriculture and renewable energy sectors. The RDF is funded with funds from access to finance instruments under Danida’s earlier supports to Private Sector Development in Ghana.

The Rural Development Fund was separated from the Danida in July, 2018. The Danish Investment Fund for Developing Countries (IFU) replaced Danida in the management of RDF and will be part of the RDF until mid-2024. RDF has changed name to RDF Ghana Ltd. but has maintained its mandate.

Engagement D – The Ghana Climate Innovation Center

Engagement D is the support to Ghana Climate Innovation Center (GCIC). The GCIC has been established under the World Bank support to Climate Innovation Centres in a number of countries. The GCIC is a hub which works to establish and develop local institutional capacity to support Ghanaian entrepreneurs. Its main focus is to develop locally adapted solutions for climate change mitigation and adaptation. GCIC works with businesses in the fields of renewable energy, energy efficiency, clean transport, water supply management/purification, sustainable agriculture, and domestic waste management.

The GCIC is hosted at Ashesi University and is jointly funded by Danida and the Netherlands Embassy under a Trust Fund administrated by the World Bank.