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.