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.

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 will run from July 2016 to December 2020 and 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. BUSAC III has a total budget of 121.6 million DKK (corresponding to about 17.8 million US Dollars). Danida is the implementing donor of BUSAC III, delegated by its co-donors, the EU and the USAID to lead the implementation of BUSAC III. This arrangement is known as a delegated cooperation agreement. Danida's contribution is 35 million DKK (corresponding to about 5.4 million USD), EU's contribution is 52.2 million DKK (corresponding to about 7.6 million USD) and the USAID's contribution is 34.4 million DKK (corresponding to about 5 million USD).
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 implementing partner, Council for Technical and Vocational Training (COTVET) 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. The SDF II has a budget of 95 million DKK (corresponding to about 13.9 million USD), but a contribution is expected from Government of Ghana by 2018.

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 that are revolving from Danida's earlier supports to Private Sector Development in Ghana. The RDF is funded with about 160 million DKK (corresponding to approximately 24.7 million USD).

Engagement D–The Ghana Climate Innovation Center
Engagement D is the Ghana Climate Innovation Center (GCIC). The GCIC is a hub, which works to establish and develop local institutional capacity to support Ghanaian entrepreneurs. Its main focus is to develop solutions for climate change mitigation and adaptation that are locally appropriate. It 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 has a budget of 117.7 million DKK (corresponding to about 17.2 million USD). Danida has contributed 65 million DKK (corresponding to about 9.5 million USD) to the GCIC. The implementing partner is Ashesi University.


For further details about SPSD III, please download a PDF version of the SPSD III Strategic Programme document via this link: