A002 Project involves Private Sector Engagement (PSE)

Indicator Name	A002 Project involves PSE
Indicator Definition	What dos PSE mean Private Sector Engagement (PSE) is when HELVETAS and one or more private companies collaborate in a structured way to achieve a social or environmental objective. What defines PSE is shared ownership of the initiative, meaning both sides contribute resources, such as funding, staff time, materials, or technical expertise. This is different from hiring a company or simply supporting local businesses; the private sector plays an active, contributing role in the partnership. Main Features of PSE Partnerships Co-initiation – HELVETAS and the private partner work together to design and plan the project, finding new ways to tackle development challenges. (Sometimes skipped if joining an existing project or using formats like matching grants.) Co-steering – Both sides share responsibility for guiding and monitoring the project’s progress. (Not always needed, for example in emergency or grant-based projects.) Co-funding – Essential for PSE. Without shared funding, it’s not PSE: A defining element of PSE is that private companies make meaningful, contracted, and verifiable contributions (financial or in-kind) toward project activities or related investments. Contributions may take the form of fixed or volume-based payments, price premiums, in-kind inputs, or relevant business investments. No fixed cost-share applies; contribution levels depend on project design, public benefit, risk sharing, and the partner’s capacity.

Indicator Name

A002 Project involves PSE

Indicator Definition

What dos PSE mean

Private Sector Engagement (PSE) is when HELVETAS and one or more private companies collaborate in a structured way to achieve a social or environmental objective. What defines PSE is shared ownership of the initiative, meaning both sides contribute resources, such as funding, staff time, materials, or technical expertise. This is different from hiring a company or simply supporting local businesses; the private sector plays an active, contributing role in the partnership.

Main Features of PSE Partnerships

Co-initiation – HELVETAS and the private partner work together to design and plan the project, finding new ways to tackle development challenges.
(Sometimes skipped if joining an existing project or using formats like matching grants.)
Co-steering – Both sides share responsibility for guiding and monitoring the project’s progress.
(Not always needed, for example in emergency or grant-based projects.)
Co-funding – Essential for PSE. Without shared funding, it’s not PSE:
A defining element of PSE is that private companies make meaningful, contracted, and verifiable contributions (financial or in-kind) toward project activities or related investments. Contributions may take the form of fixed or volume-based payments, price premiums, in-kind inputs, or relevant business investments. No fixed cost-share applies; contribution levels depend on project design, public benefit, risk sharing, and the partner’s capacity.

Yes/No

Private partners can support HELVETAS projects in different ways. Their contributions can be financial or in-kind (non-cash), depending on the agreement. The main types are:

Fixed yearly amount: The company gives a set amount of money each year, no matter the quantity of goods sold or people trained.
→ Helps cover agreed project activities.
Yearly amount linked to volume: The company’s contribution depends on sales or production volumes (e.g., per ton purchased or per person trained).
→ Encourages ongoing commitment even when demand is low, since payments are tied to contract terms.
Price premiums: The company pays a higher price per product unit (e.g., fair-trade or “living income” premiums).
→ Targets are set in the contract but may not always be met if demand drops.
In-kind contributions: Instead of money, the company provides goods, services, staff time, or equipment.
→ These contributions must go beyond normal business operations, be clearly described, and be tracked and valued.
Other relevant investments: Some company investments that are not directly part of the project (like paying for certification) can still count as contributions if they benefit the target group.

Financial or Market-Based (Money Flow):

The project mobilizes private investment, co-financing, or in-kind contributions.
Example: A company co-funds a skills training program or invests in sustainable supply chains

Capacity Building or Non-Financial Collaboration:

The project strengthens private sector capacity, policy engagement, or partnerships without direct financial transactions.
Example: The project trains SMEs, supports business associations, or co-designs solutions with local enterprises

Mark “Yes” if the project includes any form of structured engagement with private sector actors (financial or non-financial). use teh checklist below

Part of PSE:

Private sector as a development partner – HELVETAS and the company work together, sharing goals, risks, costs, and benefits.
Private sector as an ally – HELVETAS supports business networks or platforms that promote sustainable development (e.g., Global Compact initiatives).

Not part of PSE:

When HELVETAS conducts one-way policy work or advocacy that targets the private sector without collaboration. In these cases, the private sector is only an audience, not a partner, so it does not qualify as PSE.
When local businesses are primary stakeholders of the project
When companies act as contractors/service providers or implementers for HELVETAS projects

Access Additional Guidance

Helvetas (2023) PSE Manual (.pdf)

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A002 Project involves Private Sector Engagement (PSE)

Indicator Definition

What dos PSE mean

Main Features of PSE Partnerships

Disaggregation

Examples of Actvities

Data Collection

How to report

Access Additional Guidance