Sir,

I fully subscribe to a number of the valid points made by Henrietta Fore. The importance of private sector capital flows to the developing world cannot be underestimated. This type of investment is absolutely essential to fight poverty and create employment – especially in Africa. I also agree that successful private-public partnerships (PPPs) can be a catalyst for development. For example, Denmark supports one PPP between Kenya’s National Aids Council and Celtel, the country’s largest mobile phone operator, which provides information to young Kenyans about HIV/AIDS.

I am also fully committed to continued cooperation with the US and other donors to find ways to deliver more effective aid. Initiatives to improve private sector participation in development are an important part of our discussions. One avenue we are exploring is how businesses could help to develop education so that young people are better prepared for work and employers can draw from a workforce that is equipped with the right skills. So, while the private sector cannot be the whole answer, it is an important piece in the development puzzle.

I believe such private sector support must focus on Africa. African economic growth has lagged behind the rest of the world, so our efforts to eradicate global poverty and promote development must focus on this continent if we are serious about achieving the Millennium Development Goals. The Danish government is convinced that private initiative and entrepreneurship are the driving forces that will enable African women and men to generate the economic growth and social dynamics that one day will end the continent’s privation and equip the continent to take part in globalisation. In particular, we should focus on promoting women’s opportunities as private entrepreneurs.

As part of our efforts, Denmark recently launched an Africa Commission to foster new and innovative ways to improve job opportunities for young people. It will draw on the lessons learnt from many years of development cooperation aimed at Africa’s private sector, not least Danish experience in this field. The Commission, whose members include President Jakaya Kikwete of Tanzania and Prime Minister Luisa Diogo of Mozambique, will present its findings in May 2009.

Denmark’s development support for the private sector contains many other elements too. We have business-to-business (B2B) partnerships as well as PPPs, plus private sector instruments, such as mixed credit schemes and financial guarantees. The resources of our trade and industry sectors are another important component in the mix. Our business sector support programmes, for instance, aim at reducing key bottlenecks that constrain development. By supporting more efficient public regulation, a sustainable labour market, the development of a competitive business sector and better access to financing, we help to establish a private sector framework that is conducive both to local business growth and foreign direct investment. Our B2B programme helps to establish long-term partnerships and mutual commitment between Danish companies and firms in developing countries. Our PPP programme supports sustainable partnerships between local and Danish companies, together with organisations or public institutions, to promote better working and living conditions in the host countries.

Lack of employment in Africa is a major constraint on the MDGs. The Danish government will continue to strive to push African economic growth and employment up the global agenda. In partnership with Africans, the international community and – not least – the private sector, we can help Africa to create the millions of productive new jobs required to lift it out of poverty.

udviklingsministeren@um.dk