"It is my intention to recast DFID as a government department that understands the private sector, that has at its disposal the right tools to deliver & that is equipped to support a vibrant, resilient & growing business sector in the poorest countries."

International Development Secretary Andrew Mitchell, October 2010, London School of Economics

The private sector department announced by Andrew Mitchell in 2010 is now open.

DFID state that the new department "intends to prompt and help catalyse change across DFID to deepen our capability to work with and enable private enterprise to improve the prosperity and well-being of poor people.

The departemnt is said ot be split into four teams focusing on:
  • Infrastructure, energy and basic services
  • Investment and finance
  • Business engagement hub
  • Policy and management

The department will take forward most of DFID’s centrally-funded private sector partnerships and projects and be a point of contact for these and future work. Its remit will include work on:
  • Pioneering and scaling up new business models that enhance the contribution of firms to development.
  • Public-private partnerships.
  • Fair and ethical trade.
  • Financial sector development including branchless banking, microfinance, finance for small & medium enterprises (SMEs) and remittances.
  • Catalysing private investment in business, infrastructure and basic services.
  • Our shareholdings in CDC (formerly the Commonwealth Development Corporation), Actis, IFC (International Finance Corporation) and MIGA (Multilateral Investment Guarantee Agency)."

More information will be released in May 2011.

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