Sida – the Swedish International Development Cooperation Agency – is a government agency working to create better living conditions for people living in poverty and under oppression around the world. Sida works on behalf of the Swedish government and parliament and the agency's activities are funded through Swedish tax revenue. Private sector collaboration is an important component in Sida’s work to promote sustainable development and take place in almost all of our thematic areas. There is no specific strategy or budget for Sida’s collaborations with the private sector. All the companies that Sida works with have to adapt to the UN’s Global Compact and its principles, and be open to external scrutiny. The aim is that the private sector actor contributes approximately half the cost when a project is run together with Sida. Cost sharing increases the commitment and momentum to invest in the initiatives that give the best results for people living in poverty. The same principles that govern all Sida's development cooperation also apply to our private sector collaborations. However, when Sida partners with the private sector there are a few principles that are of specific importance. Catalytic partnerships All partnerships should be catalytic and generate a multiplier effect on a project’s development impact. Sida’s involvement should catalyse resources such as knowledge, innovation capacity and long-term investments from private sector partners to reach development objectives. This way, we can accelerate the implementation of the Sustainable Development Goals (SDG’s). Social and environmental responsibility Sida collaborates with the private sector in projects where Sida's poverty reduction objective overlaps a company's core business objectives. Companies must also commit to improve the social and environmental responsibility in their operations. Sustainable results through cost and risk sharing The partnerships are based on risks and costs being shared between Sida and the partnering company. The joint ownership ensures sustainable results. Sustainable and systemic change in markets Projects are designed to have systemic impact and to contribute to market reforms by enabling well-functioning, inclusive and sustainable markets, value chains or business models. Sida always makes assessments to ensure that a project does not give a competitive advantage to a specific company, but rather paves the way for systemic change. Better results together than apart The collaboration between Sida and the company should lead to better results than if each actor would have implemented a project themselves. Sida's contribution enables development that would not have taken place at the same size or scale without a partnership.