Engaging the private sector in post-conflict recovery
Summary
The document argues that while engaging the private sector in post-conflict settings carries reputational and political risks, it is essential for sustainable economic recovery. It suggests that SADPA should move beyond a purely militaristic or diplomatic approach to PCRD by coordinating with businesses to create jobs and stimulate growth. The author proposes six specific modalities for engagement, including risk guarantees, governance reform, and the creation of public-private dialogue platforms, while cautioning against a purely mercantilist approach that could damage South Africa's image in Africa.
Key insights
- Fragile and post-conflict areas face a 'catch-22' where they most need economic revitalisation but struggle to attract investment due to their perceived fragility.
- There is a global shift in development policy toward engaging the private sector in PCRD, driven by Western budgetary austerity and a recognition that conventional development cooperation has failed in conflict-affected countries.
- South Africa's approach to economic diplomacy has shifted from an ideological ambivalence toward big business to a more pragmatic framework, as seen in the 2010 'Economic diplomacy strategic framework'.
- SADPA faces a significant reputational risk if its PCRD activities are perceived as a 'pathfinder' for South African commercial interests rather than being based on principles of solidarity.
- Brazil's development agency (ABC) provides a model of 'mutual economic advantage' where technical cooperation is used to facilitate market penetration for Brazilian firms, such as the state-owned mining giant Vale in Mozambique.
- SADPA's capacity is constrained by limited financial resources, with the African Renaissance Fund likely to be allocated no more than R500 million (approximately $50 million) annually.
- The author proposes six modalities for SADPA to engage the private sector: providing risk guarantees, supporting reform and governance, leveraging core business activities of big firms, regulating responsible business practices, sharing expertise, and brokering dialogue platforms.
- Leveraging the core business activities of large firms, such as procurement budgets, offers significantly higher developmental impact than relying on corporate social responsibility or 'charity' projects.
Cite the original document
- APA
- Ford, J. (2014). Engaging the private sector in post-conflict recovery. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/Paper269-9Oct2014.pdf
- Chicago
- Ford, Jolyon. Engaging the private sector in post-conflict recovery. Institute for Security Studies, 2014. https://issafrica.s3.amazonaws.com/site/uploads/Paper269-9Oct2014.pdf.
- Wikipedia
- {{cite report |last1=Ford |first1=Jolyon |title=Engaging the private sector in post-conflict recovery |publisher=Institute for Security Studies |date=October 2014 |url=https://issafrica.s3.amazonaws.com/site/uploads/Paper269-9Oct2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{ford2014engaging, author = {Ford, Jolyon}, title = {{Engaging the private sector in post-conflict recovery}}, institution = {Institute for Security Studies}, year = {2014}, month = oct, url = {https://issafrica.s3.amazonaws.com/site/uploads/Paper269-9Oct2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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