INTRODUCTION TO GDA INTERSECTING INTERESTS: USAID AND THE PRIVATE SECTOR

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1 INTRODUCTION TO GDA Throughout its history, USAID has acted either as a direct donor or through a client-vendor relationship with organizations that implement projects defined or desired by USAID. Using a Global Development Alliance (GDA), USAID can partner with companies and NGOs as equals in the development process. GDA is a public-private partnership model that allows USAID to leverage resources from private sector partners and use those assets in a way that allows us to achieve the mutual goals of the partnership. A well-constructed GDA furthers the objectives of the USAID mission while benefiting the business interests of the resource partner. A GDA meets the following criteria: At least 1:1 leverage (in cash and in-kind) of USAID resources; Common goal defined for all partners; Jointly-defined solution to a social or economic development problem; Non-traditional resource partners (companies, foundations, etc.); Shared resources, risks and results, with a preference for additionality of impact; and Innovative, sustainable approaches to development. Before embarking on a partnership-building exercise, Missions should identify the strategic rationale for including GDA in their programming. GDAs can be used to support many different types of objectives, and can result in many different types of leverage. Missions should explore the following questions, and use the answers to guide how GDA is integrated into their portfolio: Is a GDA appropriate here? What is the rationale for using GDA? What interest might a resource partner have in a GDA in this program area? What kind of resources might a GDA in this program area leverage? What does the Mission hope to achieve by using GDA? What specific Mission or project goals would not be achievable without a GDA? INTERSECTING INTERESTS: USAID AND THE PRIVATE SECTOR Star*Cola, a multinational soft drink bottling company, needs to maintain access to clean water in countries where it has factories. To date, Star*Cola has had little success in lobbying for better water management policy, and lacks the engineering capacity or funds to run water treatment plants. By partnering with a USAID project focusing on improving access to clean water, the company can provide expertise, equipment upgrades, and funding to improve public water treatment systems, help orchestrate a marketing campaign to generate popular demand for clean water, and provide matching grants to local governments who seek to upgrade small infrastructure. In return, the USAID project provides Star*Cola with legitimate access to local government officials and a cadre of engineers to ensure that infrastructure projects are well-built. In addition, the project keeps track of Star*Cola s contributions and ensures that resources are managed properly. Over time, Star*Cola becomes known for its green reputation, and its brand recognition grows, spurring increased global demand. By providing an innovative combination of in-kind and cash resources, Star*Cola will be able to maintain and expand its current operations, and the USAID project is able to reach more aggressive targets toward its goal of cleaner water.

2 STATUTORY AND POLICY REQUIREMENTS USAID statutory and policy requirements apply to all USAID-funded and managed programs, including Global Development Alliances (GDAs). Three requirements associated with GDAs include: Environmental Procedures. All GDAs need to comply with 22 CFR 216. See frequently asked questions about GDAs and Environmental Procedures (below). Click Environmental Procedures for more information. Federal Advisory Committee Act (FACA). In connection with the development and implementation of GDAs, USAID often consults with and seeks the views of a range of outside parties. These consultations will be initiated by ODP/PSA as well as program bureaus and missions. Whenever USAID seeks the views of outside parties, consideration should be given to the potential application of FACA. FACA information can be found on the General Service Administration s website FACA USAID Branding Guidelines. GDAs often include co-branded documents and materials. Click here for USAID s branding guidelines.

3 ENVIRONMENTAL PROCEDURES AND GDAS FAQS Note: This document addresses a number of general, frequently asked questions concerning environmental reviews and public-private alliances. It in no way supplants the need to carefully review Title 22 of the Code of Federal Regulations, Part 216 (USAID Environmental Procedures or 22 CFR 216) or to consult with your Mission Environmental Officer (MEO) and/or Regional Environmental Officer (REO) in conjunction with your Bureau Environmental Officer (BEO). 1. Do USAID-financed programs and activities under public-private alliances need to comply with USAID s Environmental Procedures set forth at 22 CFR 216? Yes. 22 CFR 216 requires some level of review for all USAID authorized or approved (i.e., USAIDfinanced) programs and activities to determine what environmental impacts, if any, they will have. The level of review depends upon the proposed program or activity. This means, for example, that one activity may be subject to a full environment review under 22 CFR 216, while another activity may be exempt or excluded from such a requirement. See question 6, below, for a general overview of the environmental review process and question 4 for information about Categorical Exclusions and Exemptions. 2. Is USAID responsible for conducting an environmental review under 22 CFR 216 for its private sector partner s activities in an alliance? Only if the partner is receiving USAID funds for the activity through a USAID-funded mechanism, such as a contract, grant, or cooperative agreement. See Question 5, below, for more information. 3. Where do I find information about USAID s environmental review requirements? 22 CFR 216 sets forth the general procedures to be used by USAID to ensure that environmental factors and values are integrated into USAID s decision-making process. It is available on-line at: <http://www.usaid.gov/our_work/environment/compliance/index.html> <http://www.access.gpo.gov/nara/cfr/waisidx_01/22cfr216_01.html> Chapter 204 (Environmental Procedures) of the Automated Directive System (ADS) sets forth the policy and essential procedures about how to apply 22 CFR 216 to the USAID assistance process in order to ensure that assessments of the environmental consequences of all programs, activities, and substantive amendments thereto are in full accordance with the requirements of 22 CFR 216. ADS 204 is available on-line at <http://www.usaid.gov/policy/ads/200/204.pdf> 4. What USAID activities are subject to environmental review under 22 CFR 216? As noted in question 1, USAID-financed programs and activities require some level of review under 22 CFR 216. This includes new projects, programs or activities and substantive amendments or extensions of ongoing projects, programs, or activities, including those implemented as part of publicprivate alliances. USAID staff should consult with their MEO, REO, or BEO for specific guidance on conducting an environmental review of a USAID-funded program or activity including those implemented through GDAs and for guidance on the conditions under which an Exemption (22 CFR 216.2(b)) or Categorical Exclusion (22 CFR 216.2(c)(2)) from the environmental review requirements of 22 CFR 216 applies.

4 5. How does 22 CFR 216 apply to public-private alliances where USAID is playing a small role in a larger alliance? It is the structure of an alliance, not the size of USAID s role in it, which determines whether 22 CFR 216 applies to USAID-funded programs and activities under an alliance. To reiterate, absent a Categorical Exclusion or Exemption, 22 CFR 216 s environmental review requirements apply to all USAID-financed programs or activities, regardless of size. To the extent that an alliance involves programs and activities that are not funded by USAID (i.e., straight parallel financing), 22 CFR 216 would not apply to activities financed separately by alliance partners utilizing their own funding mechanisms. The Global Development Alliance (GDA) document Tools for Alliance Builders (available at discusses a number of approaches to establishing alliances, which can be placed in two broad categories (see Tools for Alliance Builders for a more detailed description): Parallel Financing: Under this approach, USAID and alliance partners reach agreement on how to work together to address a development problem, with each partner establishing a separate mechanism (e.g., grant, contract) through which to provide resources to support the alliance s work (financial or in-kind). USAID-funded programs and activities under the alliance are subject to environmental review under 22 CFR 216, absent an exemption or exclusion, discussed above. To the extent that an alliance involves programs and activities that are not funded by USAID, 22 CFR 216 would not apply to activities financed separately by alliance partners utilizing their own funding mechanisms. Pooled Resources: Under this approach, USAID and alliance partners establish a formal alliance governance structure for the purpose of attracting resources and making joint program decisions. These alliances may involve fairly complex organizational structures and legal documentation. For this type of alliance, USAID support typically takes the form of a grant to a nongovernmental organization (NGO) established by the alliance or to a public international organization (PIO) or other financial institution that serves as trustee for the alliance s resources. Where USAID resources are utilized under such structures, programs and activities are subject to environmental review under 22 CFR 216. The level of review, as discussed above, depends on the proposed program or activity. In all cases, remember that, as part of the due diligence investigation of a potential alliance partner, it is essential to investigate what is often called the triple bottom line i.e., is the prospective partner socially responsible, environmentally accountable, and financially sound. For purposes of this discussion, this means that, while the 22 CFR 216 environmental review procedures may not be applicable to a program or activity implemented under an alliance, USAID should still be concerned about a proposed alliance partner s past record of environmental accountability and its specific plans for environmental accountability under the alliance. As outlined in the Tools for Alliance Builders Preconditions for Success: An Alliance Checklist, [i]t is critical that USAID align itself with private sector entities whose interests are compatible with USAID s and whose business practices do not pose reputation risks for the alliance or for USAID. Look for evidence that the proposed partners operational practices incorporate, for instance, commitment to human rights, decent work conditions, environmental protection, and community involvement. 6. What does the environmental review under 22 CFR 216 entail? This question is best addressed by reviewing 22 CFR 216 and ADS 204 and conferring with your MEO, REO or BEO. As a general matter, however, depending on the nature of the project or activity,

5 22 CFR 216 will require the preparation of an Initial Environmental Examination (IEE) or request for Categorical Exclusion. Some will also require an Environmental Assessment (EA) and it would be uncommon but possible that one could require an Environmental Impact Statement (EIS). Here, a few definitions are helpful. 22 CFR 216 defines the following terms as follows: IEE: The first review of the reasonably foreseeable effects of a proposed action on the environment. Its function is to provide a brief statement of the factual basis for a Threshold Determination as to whether an EA or an EIS will be required. Threshold Determination: The formal Agency decision that determines, based on the IEE, whether a proposed Agency action is a major action significantly affecting the environment. EA: A detailed study of the reasonably foreseeable significant effects, both beneficial and adverse, of a proposed action on the environment of a foreign country or countries. EIS: A detailed study of the reasonably foreseeable environmental impacts, positive and negative, of a proposed USAID action and its reasonable alternatives on the territory of the United States, the global commons (high seas) or areas outside the jurisdiction of any nation. See 22 CFR for the specific requirements for preparing EISs. There are generally two primary steps in the environmental review process: Step 1: IEE, defined above. An IEE is not required for activities to which an Exemption or Categorical Exclusion under 22 CFR 216 applies. Additionally, no IEE is required for activities included in the 22 CFR 216 class of actions normally identified as having significant effects on the environment these activities require an immediate EA or EIS, as appropriate. See 22 CFR 216.2(d). The originator of the action, normally the Mission, is responsible for preparation of the IEE or request for Categorical Exclusion, which is then submitted by the Mission Director to the BEO for review and written concurrence. IEEs record Threshold Decisions such as Positive Threshold Decisions for proposed actions determined to have a potentially significant effect on the environment and Negative Determinations if the proposed action will not have a potentially significant effect on the environment. Step 2: If the IEE includes a Positive Threshold Decision, then a Scoping Exercise is undertaken by the Mission with the host government and affected public to determine the focus and scope of work for the needed EA or EIS, as appropriate. The results of the Scoping Exercise must be approved in writing by the BEO prior to beginning the EA or EIS. 7. Our mission is providing technical assistance only to an alliance; does 22 CFR 216 still apply? Yes. However, when the provision of technical assistance does not include activities that directly affect the environment, 22 CFR 216 includes a procedure for obtaining a Categorical Exclusion from further environmental review. But, any requests for application of this or any other Categorical Exclusion must be made in writing and include appropriate justification. The decision regarding the application of a Categorical Exclusion must be reviewed and approved, in writing, by the BEO. 8. I m working on an alliance and am concerned that the amount of time and level of review required under 22 CFR 216 may be perceived as burdensome to potential partners.

6 USAID does not want to deter potential partners from engaging with us. In many cases, if the alliance is planned appropriately, this should not be a concern. If potential partners have questions about our 22 CFR 216 process, please address their questions in coordination with the MEO, REO, or BEO. Keep in mind that appropriate alliance partners should not be concerned by the 22 CFR 216 review process as they themselves should both understand and demonstrate environmental accountability in their works. As noted in Question 5, above, environmental accountability is a core element of the due diligence review of potential alliance partners. USAID staff should not seek to develop alliances with partners who are not environmentally accountable, which may include those who seek to avoid environmental review of their activities. 9. We need to obligate USAID funds for our GDA quickly and do not have time to conduct an environmental review. Is it possible to complete the review later? 22 CFR 216 provides that IEEs should be prepared at the Project Identification Document (PID) or Program Assistance Initial Proposal (PAIP) stage. (Concept papers and activity approval documents [AADs] have replaced PIDs and PAIPs. See ADS 200 Series.) Additionally, ADS E provides that each Operating Unit and SO Team shall develop effective essential procedures that ensure adequate time and resources are available to complete all environmental work required under 22 CFR 216 before funds are obligated (this environmental work includes IEEs, Categorical Exclusions, requests for Deferrals or Exemptions of environmental reviews, and, if appropriate, Scoping Statements and their related EAs or EISs). The GDA Toolkit also specifies that during the planning stages of a potential alliance the normal list of statutory, regulatory, and policy requirements that apply to USAID-funded activities should be reviewed. This includes 22 CFR 216 which is undertaken as an integral and concurrent part of a project s design. Thus, the situation described in this question can and should be avoided. 22 CFR 216 recognizes that environmental review of all programs or activities may not be possible at the time of program or activity approval, before obligation. See CFR for an overview of the stringent requirements that apply to environmental reviews after authorization of financing. Also, consult with your MEO, REO, or BEO for specific guidance on what to do when you expect that an IEE is not going to be completed within the specified timelines. See also 22 CFR 216.3(a)(1). 10. Are there other environmental laws or regulations that apply to USAID activities? Generally, yes, but their applicability depends on the activity. For example, Section 119 of the Foreign Assistance Act of 1961, as amended (FAA) includes provisions related to endangered species, including actions required by USAID. Section 118 of the FAA includes provisions related to tropical forests. These laws do not supplant the 22 CFR 216 environmental review requirements. USAID GDA partnerships should also comply with any applicable environmental restrictions and requirements in the host country. In most cases, any such restrictions and requirements will be less extensive than USAID's, but the partnership agreements must take account of any such restrictions and requirements. Please consult with GC or your RLA for advice and guidance on specific legal questions, and your MEO, REO, or BEO on all other matters.

7 11. United States firms are generally familiar with the National Environmental Policy Act (NEPA). Is there any difference between NEPA and USAID s Environmental Procedures? Yes. NEPA is a U.S. law that sets forth the requirements for environmental review of U.S. Government actions undertaken within the United States. Most USAID programs and activities, on the other hand, take place outside of the United States. USAID s Environmental Procedures are consistent with the purposes of NEPA, and are intended to implement the requirements of NEPA as they affect USAID programs.

8 THINKING STRATEGICALLY ABOUT ALLIANCES IDENTIFYING A PRIVATE SECTOR RESOURCE PARTNER For each of the development sectors being considered in the mission s strategic plan, consider whether the private sector is or could be a significant, long-term stakeholder. There are different ways to look at the private sector as a stakeholder in the mission s development program: 1. Direct business interests: What private sector actors stand to gain if this sector grows and prospers? Conversely, what private sector actors stand to lose if it does not? 2. Indirect business interests: What private sector actors have a long-term financial or reputational investment in this country or sector? 3. Philanthropic interests: What foundations and other actors in the private nonprofit sector have interests in this country or sector? 4. Critical assets: What private sector actors might be a critical part of the solution to the development challenges in this sector? IDENTIFYING POTENTIAL PARTNERS WITH DIRECT BUSINESS INTERESTS (CATEGORY #1) Stakeholders falling into category #1 are typically private for-profit businesses or service providers and are good candidates to approach as resource partners because they would expect to reap business benefits from a successful alliance with the U.S. Agency for International Development (USAID). In identifying private sector actors in this category, consider each of the roles the private sector plays and its links to USAID s development priorities: As an employer, a private business may have interests in primary healthcare, HIV/AIDS prevention, health policy, basic education, skills training, information technology (IT) training, labor policy, and pension and social security policy. As an investor, a private business may have interests in accessing essential raw materials in a sustainable way through responsible economic and environmental management; in being assured of an adequate supply of healthy and productive workers through cost-effective healthcare and skills training; in efficient marketing of its product through market systems and transportation infrastructure development; and in a stable and predictable economic management regime with protection for foreign and local private investment. As a vendor and supplier of inputs, a private business may have interests in growing the markets for its products and services through agricultural and small and medium-sized enterprise development, promotion of ecotourism, skills training programs, improved financing or credit access for buyers of goods and services, and a stable and predictable trade and economic management regime.

9 A purchaser may have interests in ensuring price stability and quality of product through agribusiness development, market development, and supply chain integration. Most of the private sector resource partners (although not the biggest in terms of contributions) found in the GDA portfolio fall into this broad category. They cluster around the following development activities: Supply chain integration: Nestle, Mars, and various European chocolate industries in West Africa Sustainable Tree Crop (Cocoa) and SUCCESS Asia Cocoa Alliances Starbucks and Green Mountain Roasters in Central American Regional Coffee Program Finta (Zambian) Dairy Ltd and local dairy farmers in Zambia Milk Collection Centers Alliance IKEA and Home Depot in Worldwide Certified Forests Alliance Royal Ahold in Ghana Food Industry Development Alliance Agribusiness development: Shaffer in Mali Markala Sugar Fresh & Green in Nigeria Cassava Competitiveness ChevronTexaco in Cabinda Agribusiness Development Livestock health and market development: Private animal health service providers in Horn of Africa Livestock Trade Commission Alliance Intervet in Southern Africa Regional Heartwater Vaccine Development Alliance Nontraditional export development: Various private buyers in Agribusiness in Sustainable Natural Plant Products AVEDA in Nepal Non-timber Forest Products Liz Claiborne in Mozlink s textile component Information technology development: Sun Microsystems, IBM, and Cisco Systems in Information Technology Training for Youth Alliance in Brazil Marketing efficiency: SHENI Agricultural Supplies and smallholder farmers in Zambia Warehouse Receipts Alliance Policy reform: Pfizer in South African Alliance on Intellectual Property Rights

10 Worker productivity: Local companies in Colombia seeking IT-trained employees in the Latin America and Caribbean Bureau s entra 21 alliance with the Inter-American Development Bank and the International Youth Foundation Banco do Brasil in Information Technology Training for Youth in Brazil Sustainable resource development: QIT Minerals in Madagascar Minerals Alliance BP in Papua Birdshead Alliance Since these partners will have core business interests at stake in their alliance with USAID, they will likely seek a more active role in the alliance, their senior management will be more engaged in its planning and management, and they may be prepared to make a longer-term and more substantial commitment if the alliance shows signs of early success. IDENTIFYING POTENTIAL PARTNERS WITH INDIRECT BUSINESS INTERESTS (CATEGORY #2) Stakeholders falling into category #2 are also good candidates for resource partners, and are typically U.S. or multinational companies that have, or seek, a long-term presence in the country and/or are identified with policy issues that could negatively affect their public image. Businesses in this category often have, or are receptive to having, corporate social responsibility (CSR) programs as tangible evidence of their interest in being good corporate citizens. Examples in the GDA database are: Unilever and Ben & Jerry s in Mali Child Welfare, De Beers Group in Sierra Leone Peace Diamonds, and Mirant in AMORE Renewable Energy Alliance in the Philippines. An additional example is the fiscal year 2003 ChevronTexaco (CT) alliance in Angola, which is motivated by CT s interest in being a good citizen in Angola more than by a direct business interest that the alliance might serve (in contrast to the Cabinda Agribusiness Development alliance cited above, which is designed to promote growth of businesses that could supply CT s operations in Angola, thus meeting an immediate business interest). Another example is the bednet vouchering scheme being developed in West Africa where oil companies have expressed interest in donating to the treated bednet distribution program in return for having their logo show on the discount coupons distributed to rural householders. Additional examples in the GDA portfolio include: Monsanto in Philippines Sesame Street in Egypt and India Royal Ahold in Ghana Intervet in Southern Africa Heartwater Vaccine Commercialization This approach requires USAID to be more proactive in the strategic planning stages in identifying potential resource partners and may be less well-suited to an opportunistic alliance-building strategy. These are cases where the business interest in the alliance may not have been immediately evident to the partner without USAID undertaking extensive discussions and leading the partner to a broader understanding of the opportunities its participation in such an alliance

11 might offer (for example, the evolution of the Royal Ahold alliance, where intensive discussion by USAID staff and contractors with Royal Ahold representatives redirected Royal Ahold s earlier interest in a one-off, CSR-inspired investment to an investment that directly supported mission and government development objectives and to which Royal Ahold could offer a unique, and critical, asset.) GDA: 5/17/04.

12 USAID Alliance Assessment: A Tool for Identifying Strategic Partnerships for Greater Development Results We will look at doing things in more innovative ways, often with the private sector private companies or private foundations to really bring a higher level of innovation to the area of development and to bring that creativity and risk taking that often does lead to some of the most important breakthroughs on behalf of the world s poorest populations. - Administrator Rajiv Shah The mandate is clear: public-private partnerships for development are now at the center of US foreign assistance policy. The challenge for USAID Missions is that alliances can be a timeintensive undertaking so it is critical that USAID Missions focus scarce human and financial resources on building those partnerships with the private sector that will deliver strategic results in support of USAID goals in a country or a sector. Additionally, effective alliances are built when there is an understanding of the private sector s perspective on opportunities and constraints within their operating environment, and how these might inform and/or intersect with development priorities. To meet this challenge, IDEA/GP has developed the Alliance Assessment Framework to assist USAID missions in identifying and prioritizing strategic alliance opportunities where partnership with the private sector can demonstrably improve development results. What can a USAID Mission expect from an Alliance Assessment? Identification and prioritization of sectors of the economy where development challenges are intersecting with business opportunities or constraints. Selection of key companies, business associations, investment funds, etc. for on-site interviews to identify specific areas where private sector business interests intersect development challenges and, in turn, how those intersections relate to USAID Missionwide or sector specific goals. The assessment can also involve focus groups to identify industry-wide priorities or cross-cutting opportunities. Definition and prioritization of strategic alliance opportunities where partnerships can both deliver substantial impacts toward USAID development goals and be of value to the private sector. Each alliance opportunity is presented in a 1-2 page summary that is easy to understand and provides actionable information and analysis, regarding potential partners, alliance scope, possible contributions and expected development impacts. Specific recommendations to USAID Mission staff on building those alliances, including next steps, possible funding mechanisms, time horizons and staffing implications. There are two ways USAID Missions can utilize the Alliance Assessment Framework: 1) A Mission-wide Alliance Assessment is ideal for Missions undertaking a strategic planning process and wanting to have a 360-degree view of how, when and where private sector alliances can have the most impact across a diverse program portfolio.

13 2) Integrated into a Sector Assessment (e.g. health, local government) that focuses on specific opportunities where private sector business interests overlap with development priorities identified in the assessment. The Assessment Framework makes it simple to include an alliance component to any sector assessment. Assessment Type Mission-wide Alliance Assessment Sector Assessment Alliance Component Mission Benefits 360-degree review of development challenges facing the private sector not only within existing Mission portfolio, but also in emerging In-depth examination of development challenges impacting the private sector and potential intersection with USAID in that space. sectors and priority areas. Alliance opportunities are Opportunity to uncover strategic cross-cutting closely aligned with sector assessment findings. opportunities where USAID can work across a number of sectors of the USAID portfolio Provides a private sector lens and recommendations to any sector assessments. Alliance opportunities correspond to overall USAID portfolio as well as additional strategic opportunities that are outside of the box. Provides guidance regarding management and staffing of an alliance portfolio. When should an assessment be conducted? Ideal for Missions embarking on a new strategic planning process Team Composition Team Leader/Alliance Advisor Lead Writer 1-2 USAID representatives (Mission, ODP, RAB) Logistics consultant Timeframe 4-6 weeks (includes 2-3 weeks for field research) Ideal for Sector Teams looking to develop new program opportunities or reviewing an on-going program Alliance Advisor with sectorrelated expertise integrated into Assessment team. Same as Sector Assessment Team The Alliance Assessment process prioritizes where the talents and resources of the private sector can enable USAID to achieve development results it could not achieve on its own. It is a tool for USAID Mission management to make informed decisions regarding where it should invest scarce resources in building private sector alliances, and to help Missions move towards a more integrated and proactive model of building partnerships that achieve real development results. For more information about the Alliance Assessment (including costs and level of involvement needed from Mission staff), please contact IDEA/GP:

14 INTRODUCING USAID AND MEETING THE PRIVATE SECTOR OVERVIEW In order to engage the private sector in Global Development Alliances (GDAs), USAID Missions and Washington Operating Units have to meet with private sector organizations and introduce them to USAID. This outreach can happen in a number of different ways: Informal introductions at a business networking or social event Formal introductory meeting with a company Private sector outreach event hosted at USAID Presentation to private sector organizations like the American Chamber of Commerce, etc. USAID must take a different approach to potential private sector partners than it does with traditional implementing and government partners. To appeal to the private sector, you often have to sell USAID s value. For example, instead of telling the private sector how your program is helping to improve the health of a community, you can describe how your program will improve the health of the company s workers, thereby increasing productivity. Pitching the business value of USAID s programs is more likely to attract the interest and resources of the private sector. ODP/PSA has prepared the following tools and guidance to ensure that you get the most out of your initial meetings with the private sector. INFORMAL MEETINGS WITH THE PRIVATE SECTOR You never know when or where you will meet with a representative from the private sector. It is a good idea to prepare a 60 second elevator speech to describe USAID, your office s programs and focus, and the agency s value to the private sector. An example speech is: USAID is part of the US government providing social and economic development and humanitarian assistance to developing countries. In X country we have programs that are improving the quality and yields of tomatoes, rice, and corn, working to decrease malaria infections, increase the skills of the local workforce, and improve the policy environment for business. Customize your elevator speech to fit your Mission or Operating Unit; making sure to avoid acronyms and development speak and to present our programs in a way that anyone can understand them.

15 GUIDANCE FOR THE FIRST ONE-ON-ONE MEETING WITH THE PRIVATE SECTOR Once you have decided which private sector organizations to target for a GDA (see Incorporating GDAs into Strategy [link] and Identifying and Prioritizing Potential Partners [link] for more information) you will need to arrange and prepare for your first exploratory meeting. Companies are busy and action-oriented. It is important that the first meetings are structured and yield concrete next steps. The goals of the initial meeting are to: 1. Quickly introduce USAID 2. Learn about the company and its business challenges and goals 3. Identify some potential areas for partnership Research the Organization before the Meeting You must do some initial research before you convene the first meeting. This research will help you prepare the right questions and begin to identify potential areas of mutual interest. It also shows that USAID is serious about partnering. Here are some core research questions to investigate before the meeting: What is the potential partner s business? Where are they operating? How long have they been operating in the country/region? Do they have consumers or suppliers in country? Do they have a corporate social responsibility program? If so, what is the focus? Do they have any major business challenges? Are any of their challenges related to the Mission s programs? (ex. lack of skilled workforce = education) Collect information on GDAs that have addressed similar challenges or who have previously worked with the partner Potential sources of this information are: company website, annual reports, local and international press coverage, US Embassy s Commercial Service or Economic Office, Chambers of Commerce, etc. Convene the Meeting Generally, initial meetings follow a general agenda: 1. Short introductions 2. Discussion and identification of common challenges/efforts 3. Identification of potential areas of partnership 4. Next steps Here are some general guidelines on how to run your meeting with a potential private sector partner.

16 Keep the presentation of USAID very brief. Spend more time learning about the company and then bring in additional details of USAID s work as they are relevant. Explain that partnerships are a new approach for USAID. Instead of providing assistance, USAID is looking for private sector partners who can contribute skills, expertise, market access, funding, and other resources to a joint program. Avoid all acronyms! Remember, you are talking to people who may have never heard of USAID or international development. Based on your research before the meeting, focus on the USAID programs that would be of most interest/benefit to the company. Don t start the conversation by asking for a cash contribution for a USAID program that needs more funding. Jointly identify the opportunity, don t just pitch USAID programs. Ask lots of questions, it will help direct your to potential common areas of interest: o What are the company s biggest business challenges? These are often related to development challenges and can reveal some of the potential common interests. o Has the company worked with USAID, NGOs or others on development programs? o How is the company structured? Is it centralized or decentralized? Who will make decisions related to a partnership with USAID? o What are the company s long-term business goals? o Identify some common areas of interest. Are there easy opportunities for partnership or would it take significant or change in scope to make a partnership work? Discuss USAID s ability to convene key government, NGO and private sector players together. Emphasize USAID s technical expertise, local knowledge and local partners. Evaluate the use of PowerPoint. PowerPoint can set a formal tone to a meeting when an informal conversation may be more appropriate. In addition, many presenters tend to talk longer and give more detail than is necessary when working from a PowerPoint. Leave them with marketing materials. You don t want to overwhelm the individual you are meeting with. Stick to one-pagers and short, non-jargon materials. ODP/PSA has created a short flyer for the private sector focused on GDAs. Next Steps Arrange a follow-up meeting to discuss any specific partnership possibilities that emerged during the initial meeting. Brief relevant USAID staff and implementers and invite them to the next meeting. Begin due diligence research on the company.

17 PRIVATE SECTOR FORUMS Missions have held private sector roundtables or forums to introduce USAID to many private sector organizations or to convene a group of private sector organizations to discuss a specific development challenge. This is great way to build awareness of USAID and identify potential resource partners for USAID. The Development Outreach Coordinator (DOC) at the Missions and the Legislative and Public Affairs (LPA) staff at USAID/Washington are a great resource for these types of events and should be consulted during the planning stage. A simple agenda for this event is: 8:30 9:00: Arrival and check-in 9:00-9:15: Opening and welcome from the Ambassador 9:15 9:25: Introduction of private sector and USAID attendees 9:25 9:50: Quick presentation by the Mission Director or Program Office of the Mission or Operating Unit s objectives, brief program overview and current challenges 9:50 10:10: Q&A (You can add break-out session on topics such as health, agriculture, etc. if needed/appropriate) 10:10 11:00: Networking reception Below are some suggestions gathered from USAID Missions that have hosted private sector forums in the past. Pre-event Planning Determine day and time Identify and reserve a venue. Consider hosting the meeting outside of USAID as the time it takes for attendees to go through security can frustrate attendees and lead to delays. Prepare list of private sector invitees in coordination with team leaders, EG office, embassy commercial office (AmCham). Make sure that you are targeting non-traditional private sector partners. This is your opportunity to engage new actors. Send speaking request to the Ambassador to open the event and to the Mission Director/Program Officer to MC event. Identify representatives from each office of the Mission or Operating Unit to ensure that interested private sector partners have appropriate contacts to speak with. Send invitations to the private sector at least three weeks in advance. ODP/PSA has created a template invitation that you can use. Coordinate with DOC and team leaders all materials to be handed out to private sector (fact sheets, publications, GDA Outreach brochure). When meeting with the private sector, you should always have: o A nice USAID folder o Success stories of other alliances (can be printed out from GDA website)

18 o Copy of GDA s private sector outreach piece (available in hard copy through Washington or download from the GDA website). Organizing Presenters Assist/coordinate with preparation of talking points for Mission Director and Ambassador. Identify one individual to present a summary of USAID programs with an emphasis on any areas the Mission or Operating Unit is targeting for GDAs. The total presentation from USAID should take no longer than 25 minutes. Remind USAID participants to bring extra business cards. Logistics Prepare a sign up sheet with names, organizations, titles, phone numbers and addresses Prepare name tags Prepare table tent listing each SO for group break-out discussions (if required) Determine room layout Determine and order audio visual equipment (only if necessary, but keep Power Point presentations to a minimum) Determine translation, videotaping, photographer, audio recording, (optional) Select a catering option. You will want to have beverages and snacks to facilitate networking after the presentation. Secure branding signage. Arrange for proper posting of flags, logos (U.S. host/honored country, USAID) Post-Event Send thank you to all who attended Evaluate reach and impact of event (consider hosting on a regular basis including different cities) Distribute list of attendees to appropriate Mission officers Identify key potential partners to engage in a follow-up one-on-one meeting

19 USAID/GHANA S PRIVATE SECTOR FORUM In 2009, USAID/Ghana convened a private sector forum. The objectives were tri-fold; 1) introduce USAID programs to potential private sector partners, 2) develop an opportunity to speak with the potential partners and 3) have a presentation and a cocktail hour for networking. There was an invite list of more than 60 private sector potential and former partners. The list was composed of persons identified by representatives from each USAID sector. The timeline for planning the event was approximately six weeks. It was stated that the event could be planned in as short a timeline as four weeks. The forum structure was a fifteen minute presentation and then networking for the remainder of the time. In actuality, the presentation was thirty minutes due to several presenters. The Ambassador also gave a short speech in which succinctly captured USAID s message to the private sector. There were also informational handouts distributed throughout the forum. As a follow up, letters were sent with additional information about Ghana s alliances and GDAs in general and the contact information for the Regional Alliance Builders was included.

20 CONSTRUCTING AN ALLIANCE Once a core group of prospective partners has been identified and the due diligence has been completed, the next phase in alliance building is the actual development, where appropriate, of an alliance. This entails ensuring that the most appropriate partners are at the table and that, ultimately, partners are willing to commit organizational resources to a partnership being constructed to resolve a jointly articulated development problem. CONVENING PARTNERS The first meeting of prospective alliance members is exploratory; generally, the partner that is initiating the alliance will organize this meeting. The goal is to build trust and commitment. When contemplating an initial meeting of potential partners, consider the following: Who convenes? The convening individual or group must be highly regarded by and have credibility with all prospective alliance members. Who attends? Those with appropriate organizational responsibility and position must attend the meetings. Often, such meetings require attendees possessing clear authority to speak on behalf of their organizations. Where? For an initial few meetings, it may be best to identify neutral ground. This prevents the meeting from being perceived as being under one organization s control. Some circumstances may require that participation by one of more members be by teleconference or electronic conferencing. The technology for electronic conferencing is readily available. Who moderates? The convener often fills this role. If choosing a moderator for the initial meetings, find a facilitator who will allow alliance members to raise issues without getting bogged down in unproductive discussions. What is discussed? An agenda for the first meeting might simply focus upon two things: personal and organizational introductions and a sharing of viewpoints about the common cause or issue that has brought the alliance together. If the organizations have not had a history of interaction, the meeting might appropriately end with only a summary of viewpoints written for distribution. If the meeting members already know each other, they might move directly to determining their collective vision of the problem and its solution. The Partner Analysis Worksheet below provides a sample agenda for meetings with potential partners. SETTING DIRECTION Alliances often encourage looking at old problems in new ways, bringing energy and creativity along with shared solutions. This happens most easily if the alliance members begin with a shared understanding of the nature of the problem and ideas about possible solutions. Steps you might take together include:

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