Private Sector Engagement

Compact Development Compact Implementation
Country Private Sector Consultations
MCC Investment Opportunity Assessment Parallel and Follow-On Investment Promotion
MCC Compact Development Procurements MCA Procurements and Outreach
Private Sector Partnerships through MCC’s Invitation to Innovate

MCA Country Consultation

When developing compact programs, MCC’s partner countries conduct intensive consultations with representatives from the private sector and civil society to identify key constraints to growth and investment opportunities. These consultations are intended to ensure that proposed programs are in line with national priorities and are designed in a way that addresses the concerns of the major stakeholders. The consultations allow stakeholders to describe economic obstacles they face, discuss potential solutions that would work in a local context, highlight flaws in previous efforts to address these challenges, and debate the technical design and requirements of new proposals.

Consultation is an ongoing process that continues into implementation. Once implementation begins, public consultations become more of an ongoing exchange of information. During implementation, consultations may be used to inform beneficiaries on how they can participate in compact projects, gather information about the impact and effectiveness of compact projects and provide the public with information about the progress and impact of the compact.

MCC provides detailed guidance to countries developing compacts in this area: “Guidance for the Consultative Process” and “Guidance for Private and NGO Sector Engagement”.

Investment Opportunity Assessment

In the development of second compacts for Georgia and Ghana, MCC is piloting a process called the Investment Opportunity Analysis (IOA) for more-focused international private sector dialogue to improve feedback on constraints to growth and identify and structure opportunities for collaboration within these thematic areas. This process is intended to introduce a more systematic approach to engaging and analyzing private sector investment opportunities and/or co-financing. More specifically, the IOA will:

  • Address policy issues of concern to the country’s private sector
  • Identify constraints to private sector investment, such as poor infrastructure, insufficient access to credit or scarce human resources with the appropriate skills
  • Encourage direct private sector participation in the compact
  • Stimulate the potential for complementary private sector investments

Procurement for Development and Implementation of Compact Projects

MCC and partner countries offer worldwide business opportunities for the private and nongovernmental sectors through procurements issued for goods and services during compact development and implementation. Compacts fund a wide range of projects in a variety of areas, including infrastructure, agriculture, property rights, private sector development, health, energy, education, and governance. Each project requires an array of procurements; for example, a compact-funded road project might require separate procurements for a project manager, design consultant, environmental consultant, monitoring/evaluation consultant, construction contractor, or design-build contractor.

To inform companies about these opportunities, MCC organizes Investment and Procurement Forums and “Doing Business with MCC” events on behalf of its partner countries. These events may take place as part of compact signings or at other points during compact development or implementation.

Subscribe to MCC’s email list, specifically the event notifications and the Doing Business with MCC notifications.

Trade and Investment Promotion

MCC and partner country policy reforms and investments in areas such as infrastructure enable and stimulate follow-on and parallel trade and private sector investment opportunities. MCC and MCA countries actively promote these opportunities, which may focus on a number of sectors, such as agribusiness, transport, logistics, and other infrastructure. In some cases, MCC and several of its partner countries have identified opportunities for businesses to capitalize or expand on MCC investments and have highlighted them through the creation of Commercial Opportunity Memos. 

Follow-on investments to MCC-funded projects have included:

  • A private concession of Mali’s Bamako-Sénou Airport following compact-funded rehabilitation of landside and airside infrastructure.
  • Leases and management contracts for water supply networks in Mozambique following compact-funded construction.
  • A private concession of Benin’s Port of Cotonou south wharf following compact-funded landside and wa­terside improvements.

Partnership

MCC looks for opportunities to develop public-private collaborations that expand the impact of MCC investments and support the agency’s mission of reducing poverty through economic growth. In early 2011, MCC launched a new initiative called the Invitation to Innovate to enhance private sector engagement and leverage new investment and development practices in MCC partner countries. Through this initiative, MCC seeks to test new technologies and approaches for development, pursue innovative financing structures, enhance training and expertise, and increase the sustainability of present and future MCC investments. 

Ideal partners will be US or international organizations that bring new ideas and innovations to MCC. Organizations may, for example, include: 

  • U.S. and non-U.S. private businesses
  • Nonprofit organizations
  • Business and trade associations
  • Foundations
  • Social responsibility funds

To support partnership development, MCC has issued an Annual Partnership Solicitation (APS), which highlights potential partnership opportunities and lays out the process for applying for and developing a partnership with MCC. Partnerships solicited through the APS may form a significant part of a core compact project or they may be smaller and aimed at adopting a new approach. This initiative is focused on partnerships in a limited number of countries and certain priority sectors, but MCC may consider expanding the initiative to include additional MCC partner countries and sectors in the future.