Achieving more with
the private sector

We are witnessing a turning point in history with profound geostrategic changes. Established alliances are becoming less relevant and others are coming to the fore. The rules-based international order is coming under increasing pressure. Countries in the Global South play a crucial role here, as key stakeholders in the major issues of the future. Whether the energy transition, climate action, species conservation or peace and security, all of these goals can only be achieved in partnership.

Now more than ever, it is therefore essential that we build partnerships, maintain them and pursue ambitious goals together. GIZ does this at different levels: bilaterally and multilaterally, with the European Union, United Nations, civil society, the scientific and research community, and – to an ever greater extent – the private sector. At the same time, we see ourselves as a service provider dedicated to promoting partnerships between various actors and are therefore in constant communication with organisations and institutions around the globe. Our aim is to pool expertise and use resources efficiently in order to find the best possible solutions to global challenges.

Mobilising private investment

Cooperation with the private sector is gaining in importance for two reasons in particular. First, the financing requirements for achieving the Sustainable Development Goals (SDGs) are enormous. The 2030 Agenda is underfunded by USD 2.5 to 4 trillion every year. At the last count, only around 16 per cent of SDG indicators were on track to be achieved; the rest fell far short of expectations. Further efforts and much more money are therefore required to achieve a world without hunger, poverty and the destruction of natural resources underpinning people’s livelihoods.

At the same time, many countries have to contend with limited budgets, debt burdens and – in the Global South in particular – the lasting effects of the COVID-19 pandemic. The SDGs cannot be achieved with government funding alone. Private investment, and the mobilisation of private capital, is a crucial factor here.

We want to pave the way for more private sector engagement in the Global South by creating the right general conditions, using our networks and resources, and facilitating potential partnerships.

Reviving local markets, strengthening export opportunities

Private investment stimulates local economies, creates jobs and income, and strengthens local and global supply chains. It contributes to economic development in our partner countries and therefore to the achievement of the 2030 Agenda. With our extensive network of contacts around the globe and decades of experience working on site, we have been facilitating access to emerging economies and developing countries for German, European and international companies and supporting their work there for many years. We provide valuable information and connect stakeholders in various regions with one another to create win-win situations.

In view of the changing global situation, we plan to further expand our partnerships with the private sector in future and take an even more purposeful and systematic approach, thereby ensuring that the objectives of international cooperation better complement and align with private sector activities.

Partnerships of this kind have many advantages:

• They stimulate the local economy in our partner countries.
• They consequently improve living conditions for people worldwide and contribute to the achievement of the SDGs.
• They boost the German and European economies by strengthening established markets and tapping into new ones.
• They benefit Germany and Europe because robust partnerships with countries in the Global South are becoming increasingly important in these troubled times.

Boosting the energy transition

The India-Germany Platform for Investments in Renewable Energy is a good example of such a win-win situation. It was launched in 2024 by Germany’s then Development Minister Svenja Schulze and India’s Minister for New and Renewable Energy Pralhad Joshi, and aims to drive forward the energy transition in both countries – and beyond.

India has a huge demand for energy that it wants to gradually meet with clean energy. In 2023, the government therefore committed to increasing renewable energy capacity by 500 gigawatts by 2030 – a volume 2.5 times greater than Germany’s current capacity. To achieve this ambitious goal in just eight years, India will need investments in excess of USD 2 trillion, according to data from the International Energy Agency.

By creating an investment platform, GIZ is contributing to the achievement of this goal on behalf of the German Government – with the additional aim of creating robust global supply chains in the energy sector and training staff for the global energy transition. The cooperation between industry associations and companies on the one hand, and financial partners and experts on the other, aims to stimulate new investment in the energy sector.

Via the platform, German, Indian and international companies will in future be able to access a growing sector in a dynamic Indian market and, together with Indian partners, start producing solar modules and components for wind turbines. India has enormous potential in almost all areas of renewable energy, but most notably in wind, solar and bioenergy. German companies in particular have a great deal to offer this market. Through strong partnerships, Indian and German actors can together drive forward technical innovations, explore new financing options, expand supply chains and establish new production sites for renewable energy.

To make this possible, GIZ mobilised many stakeholders in 2024, including government representatives from Germany and India, as well as industry associations, international organisations, development banks, the scientific and academic community, and civil society. In addition to the lead ministries – the Indian Ministry for New and Renewable Energy and the German Federal Ministry for Economic Cooperation and Development (BMZ) – further actors include the National Solar Energy Federation of India (NSEFI), the German Solar Association (BSW-Solar), the German Wind Energy Association (BWE) and its Indian counterpart Wind Independent Power Producers Association (WIPPA), the German Engineering Federation (VDMA), KfW and the Asian Development Bank. International actors include the International Solar Alliance (ISA) and the International Energy Agency (IEA), with more expected to follow.

As a first step, wind, solar and bioenergy associations from both countries signed declarations of intent for cooperation, affirming their commitment to an association partnership and defining the framework for it. These declarations of intent form the basis for technical and financial cooperation between members of the respective associations.

A digital tool is currently being programmed to facilitate networking for all stakeholders and provide robust information on market development in India and around the world. This tool will also enable companies to offer their products and services and find information on tenders and market opportunities.

The partnership between Germany and India not only advances the energy transition in both countries, but also serves as a model for further partnerships in India and other countries. Together we can achieve more – and this is not limited to the sustainable transformation of global energy systems.

Ukraine: partnerships for reconstruction

In Ukraine, GIZ also works side by side with numerous partners at various levels. Reconstruction has already begun there despite the ongoing war. On behalf of BMZ and in conjunction with other international funding providers such as the World Bank, the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), we are supporting the country, which has been in crisis mode ever since Russia launched its war of aggression.

In times of war, a country is dependent on its energy sector and economy to function effectively. Keeping these up and running in Ukraine is our goal. With a targeted combination of advisory services and training for skilled workers, as well as direct financial support for companies to enable joint project implementation, we contributed to this in 2024 in collaboration with our partners.

We are also working to channel private foreign investment into Ukraine, leverage innovative technologies for reconstruction and get international companies involved in rebuilding the country. One way in which we achieved this in 2024 was through the develoPPP funding programme. With this, GIZ has been supporting private sector activities in areas where business opportunities and development potential overlap, and has been doing so on behalf of BMZ for more than 25 years. As a result, over 1,250 development partnerships with companies in more than 60 countries have been established so far. This considerable experience will stand us in good stead as we further expand our opportunities for cooperation with the private sector in future.

The develoPPP programme held a special competition for Ukraine in late 2023. Companies that contribute to the rebuilding of Ukraine with projects were able to apply for support. The focus was on measures in the areas of agriculture, health, construction and renewable energy. Through this special competition, GIZ launched 13 promising projects in 2024 alone. As a result, the public funding of just over EUR 2.5 million used for this purpose has been more than doubled by private funding, which currently stands at just shy of EUR 3 million.

Win-win solutions

The development partnerships supported by the programme include a project with IBS, a company based in southern Germany. IBS has developed a sustainable construction material that can be used to repair roads efficiently, cost-effectively and in a way that conserves resources. Together with OPiS AG, a consulting company specialising in infrastructure, IBS is now helping the city of Lviv to repair its damaged road network – thereby contributing to both reconstruction and greater sustainability. The aim is to resurface 7,000 square metres of road in total.

We are also supporting the German family-run business Organic Life GmbH in its efforts to make agricultural enterprises less dependent on the central electricity grid together with the Ukrainian company RSN Trade LLC. A solar power system that offers farmers in the Rivne region of north-western Ukraine a reliable energy supply and feeds surplus electricity back into the grid is to be used to achieve this. RSN Trade LLC runs a cold storage facility for organic berries and vegetables. It also provides training courses in cooperation with a local vocational school. The project benefits not only farmers and the local population, but also both companies. Their shared objective is to strengthen German-Ukrainian trade relations on a long-term basis and to expand the export of organic agricultural products from Ukraine.

In addition to the services offered by develoPPP, the German Agency for Business and Economic Development (AWE), which is run by GIZ and DEG, also launched the InfoDesk Ukraine in 2024 in collaboration with the German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine). It helps German companies to find the right point of entry for their business ventures in Ukraine. It also provides practical advice on participating in public tenders. In addition, AWE prepares relevant complex development bank tenders in a way that makes them more accessible for companies, for example for investments in public transport in Ukrainian cities, improving the water network or repairing street lighting. Here, GIZ creates a bridge between the public and private sector, and between Germany and Ukraine.

Achieving more together

These examples all show that private sector engagement is essential for sustainable development worldwide. The partnerships between companies and different national and international actors around the globe lead to win-win situations that ultimately benefit everyone – and as a result also produce lasting results.