Technical assistance – a development tool serving the private sector

Editorial

By Dov Zerah, President of PROPARCO

Consultancy and support are an important component of the service that development finance institutions provide to businesses in emerging and developing countries, particularly in Africa. Small and medium sized enterprises (SMEs) are deficient in these areas, especially in governance and financial management, and this hinders their growth as well as their ability to contribute to development.

Combining funding and technical assistance to boost development

Development finance institutions sometimes provide their clients with technical assistance to strengthen their capacity in governance, management and financial administration. While the use of public funds for profit-making enterprises raises certain issues, it also requires efficiency. A project based on a strategic vision, real commitment and monitoring of outcomes may help to make a business more sustainable.► Download Cyril Renault's paper  

Achieving Impact through Technical Assistance

Economic development can be directed into emerging markets by promoting private sector engagement. By providing technical assistance to companies, industries, and governments, development finance institutions seek to help grow the private sector in emerging markets by improving the investment climate, increasing access to finance and basic infrastructure, and promoting sustainable businesses. ► Download Halah Al-Jubeir, Gilles Galludec and Peer Stein's  paper  

Private equity investment and technical assistance – a winning combination for SME development

Is it still possible to envisage SME development in Africa without providing technical assistance as well as financial investment? After all, it is thanks to technical assistance programmes that private equity investment in Africa has emerged. Experience shows that support geared to the needs of African SMEs and the specifics of the local economy is essential to their development. Should this support be stopped or increased?  ► Downoad Aziz Mebarek's paper  

Accelerating the expansion of microinsurance through technical assistance

Technical assistance provided by LeapFrog Labs enables microinsurance companies to grow stronger and innovate. A dedicated team and bespoke service ensure that the funds invested perform more efficiently. By capitalising on experience and analysing the projects its supports, LeapFrog Labs has built a corpus of knowledge that serves its entire portfolio and, beyond that, the sector as a whole. ► Download Nina Schuler's paper  

European Union support for the private sector

European Union technical assistance is implemented at micro-, meso- and macroeconomic level to encourage growth and benefit different sectors of the population, including the poorest. Programmes aim to incorporate developing countries in the international trade loop by involving numerous economic stakeholders and taking social considerations into account. An in-depth look at one of the development drivers implemented by the EU. ► Download Jan ten Bloemendal, Alessandra Lustrati and Sonia Pagliaro's paper  

Impact assessment of technical assistance projects

It is becoming increasingly necessary to assess the impact of technical assistance projects. But the standard indicators, most of which are based on quantitative measurements, are not necessarily appropriate given the diversity of the programmes concerned. When resources permit, the conceptualisation of an impact chain and use of a planning matrix help practitioners to develop indicators appropriate to each stage of the project. ► Download Tobias Bidlingmaier's paper  

Pitfalls and lessons for technical assistance

What have the millions spent by development agencies on technical assistance actually been used for? What part will technical assistance play in the future? Critical examination of assistance programmes with a focus on private-sector support in Africa points to beneficiaries not being consulted, lack of local support for the project, absence of follow-up and poor coordination. We expose some of the most glaring problems and explore some avenues for improvement.  ► Download Klaus Niederländer and Peter Hinton's paper

Lessons learned from this issue

By Benjamin Neumann, Editor in Chief

The inclusion of technical assistance in the investment package is a relatively new idea that could increase the role of the private sector in the development of the Global South. A promising mix combining direct funding and value-added support. Technical assistance can effectively contribute to the strengthening and long-term survival of the private sector in developing countries by providing small and medium sized enterprises (SMEs) with advice on setup, information management and restructuring.