DFID’s private sector development work

A review examining DFID’s approach to private sector development, which encompasses a wide range of programmes from large-scale regulatory reform to microfinance support for small enterprises.

Score: Amber/Red
  1. Status: Completed
  2. Published: 14 May 2014
  3. Type: Other
  4. Subject: Private sector, Trade and economic development
  5. Assessment: Amber/Red
  6. Location: Bangladesh, Ethiopia, Tanzania
  7. Lead commissioner: Diana Good


DFID has been coherent and consistent in its view that developing the private sector in a country is central to its economic development and to poverty reduction. DFID sees its work in this area as helping countries graduate from a dependency on aid. The scale of the challenge is immense and DFID’s approach is highly ambitious. DFID plans to spend £1.8 billion on economic development in 2015-16 – more than doubling the amount spent in 2012-13.

This review examines DFID’s approach to private sector development (PSD). As a result of our findings, we have given a rating of amber-red.


Review publication

Published 15 May 2014

Government response

Published 12 June 2014

ICAI follow-up

Published 18 June 2015