Private Sector Opportunities and Innovations Support
ENGAGING THE PRIVATE SECTOR IN DEVELOPMENT COOPERATION
The Ministry of Finance of the Slovak Republic (“MF SR”) supports the involvement of the private sector in development cooperation primarily through the Resource Mobilisation Facility (RMF) programme. The RMF is a fund to support the preparation of feasibility and sector studies to help to mobilise resources for larger investment projects, ideally with the participation of Slovak experts and companies. This mechanism allows the recipients of aid (e.g. local authorities) in the target countries of the Western Balkans to bridge investment projects preparation phase for which they usually lack public resources. The RMF has so far funded projects of regional UNDP offices in the Balkans in the public lighting, energy efficiency and green energy, water and waste management and IT solutions areas.
The Export-Import bank of the Slovak Republic (EXIMBANKA SR) also contributes to the creation and facilitation of opportunities for the private sector to engage in development cooperation in its role of the so-called Private Sector Liaison Officer within the World Bank’s system. Its main task is to build contacts between the private sector and international financial institutions, look for business and investment opportunities for Slovak companies in developing countries, and provide them with advice. The private sector consultant of the Slovak UNDP project team performs similar tasks in relation to other international organisations.
Concessional Export Credits are provided by the MF SR, in cooperation with EXIMBANKA SR. This instrument provides concessional financing for public sector institutions in developing countries interested in purchasing Slovak goods and services which have a limited capacity to finance business transactions on standard commercial terms. The mechanism is governed by OECD rules. These tied-aid credits are partially financed from Slovak ODA funds, and the support is targeted exclusively at projects provably delivering a positive contribution to sustainable development of the partner countries. At the same time, the concessional export credits instrument enables Slovak exporters to start business activities easily, and supports their competitiveness in emerging markets at a minimised risk as all transactions are insured by EXIMBANKA SR.
More information about opportunities for involving entrepreneurs in development projects can be found here.
PROMOTING INNOVATION IN THE PUBLIC SECTOR
Another development cooperation priority area of the MF SR is support for good governance, which is based on the innovative tools and approaches use, mainly advanced technologies, data collection and analysis and alternative financial instruments.
The main initiative of the MF SR in this area is the Transformative Governance and Finance Facility, a joint programme with the UNDP supporting developing and piloting innovative projects particularly in the Western Balkans and Eastern Europe.
The following are examples of successful innovations supported by the Ministry of Finance of the Slovak Republic under the programme: design and implementation of a pilot investment scheme with a social impact in Armenia; creation of the BOOST incubator for social innovation solutions.