Private Sector Advisor Private Sector engagement: Perspectives from USAID 20 May 2014 Jasmine Baleva Private Sector Advisor USAID

Overview: Why engage with the Private Sector? USAID and private sector actors USAID’s private sector approaches and cross-sectoral collaborations/partnerships Highlights of work with different private sector actors: SME, Global/regional partnerships Private sector and mhealth USAID and private sector assessments Looking forward

USAID’s rationale for working with the private sector Definition of Private Sector = Non-State (NGO, Commercial, Faith-based, Informal) Growing evidence that many health consumers in developing countries – including the poor – spend their own resources in the private sector Enables the public sector to target resources to the poor and needy Private sector expands geographic access – rural, geographically isolated areas Increases likelihood of sustainability

USAID’s involvement with Private Sector Actors

USAID projects have pioneered many approaches to work with the private sector Through global and bi-lateral projects, USAID has developed a broad array of private sector initiatives with various private sector actors engaged such as these examples: Private provider networks and social franchising [private providers, assoc., franchises] Access to finance and business training support [providers, banks, MFIs, support cos.] Evolving generations of social marketing models [pharma, SMO, local NGO] Employer based programs [private sector companies, governments] Pharmaceutical partnerships [multinational R&D, generic, local pharma] Corporate Social Responsibility [non-health and health-related corporations] Health financing (insurance, contracting, vouchers) [government, insurers, consumers] PPP units/Gov’t support (Network for Africa COP) [Ministries, many actors] These projects have formed the foundation of the USAID’s global leadership in private health sector initiatives

40+ years of cross-sectoral collaborations in the Private Sector USAID Private Sector Global Programs 40+ years of cross-sectoral collaborations in the Private Sector Family Planning Social marketing support ~10 countries (1972 – 1984) SOMARC I, II, and III (1984 – 1998) Enterprise and TIPPS (1985 – 1991) PROFIT (1991 – 1997) CMS (1998 – 2004) PSP (2005 – 2009): PSP-One, Netmark, POUZN SHOPS (2009 – present) XTRA INFO The Enterprise (Family Enterprise) and TIPPS projects (Technical Information on Population for the Private Sector) Projects did not work in social marketing and instead more in the commercial sector Started introducing more innovative approaches to expanding access to FP such as workplace/employer programs and stimulating the private sector through financing PROFIT project (Promoting Financial Investments and Transfers): 1991 – 1997: Based on experiences from Enterprise and TIPPS, the project concentrated its efforts on employer-based and insurance-based activities but added a new component of technical assistance to private providers through loans, training and improved access to commodities. CMS or the Commercial Market Strategies project: Combined all the previous projects’ work in the private sector The biggest relevant takeway is that there was considerable analytical work under the CMS project, (market segmentation, different models of social marketing, support to for TMA-like work in the Philippines, are examples which for time reasons I won’t go into). This analytical work is of course essential in the total market approach in order to understand each stakeholders comparative advantage and ultimately their role in advancing the overall FP market.

USAID Support to SMEs Access to finance plays a critical role in sustaining and growing private providers Banks and MFIs in most countries are not lending to health sector in a significant way Work with financial institutions to expand lending Market research, training for banks, assistance with DCA Strengthen business capacity to sustain quality services Business and financial management training Improve market linkages Trade fairs to connect market players

Example of Global Partnership Mobile Alliance for Maternal Action (MAMA) Global Development Alliance founded by USAID and Johnson & Johnson in 2010 Started as 3-yr, $10M investment Initial work from the SHOPS project Current partner support from the mHealth Alliance, United Nations Foundation and BabyCenter Countries implemented: Bangladesh, India, South Africa The MAMA partnership delivers vital health messages to new and expectant mothers in developing countries via their mobile phones.

Global Partnership Frameworks Framework agreements with key private sector partners leverage combined assets with greater efficiency and effectiveness in health

mHealth and the Private Sector mhealth matters because phone ownership rates are so high, even among underserved populations mhealth tools offer solutions to some long-standing challenges (cost effective data collection, engagement with beneficiaries lost to follow up, support for over-burdened workers) Partnerships with private sector matter in mHealth because sustainable large-scale interventions require a range of stakeholders and resources Behavior Change Communication (BCC) Data Collection Finance Logistics Service Delivery

How does a country/region start engaging with the Private Sector?

USAID and Private Sector Assessments A key first step to private sector engagement USAID and Private Sector Assessments

Newest: West Africa PSA

Looking Forward Dissemination event is catalytic and the start of a journey PSA details one point in time though meant to catalyze leveraging the private sector for improved health outcomes Pan-Africa diffusion of learnings: serves as the sparks Cross-sectoral collaborations and partnerships are key Timing is right for GDAs and other partnerships across the health system

Merci beaucoup! Jasmine Baleva jbaleva@usaid.gov

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USAID Partnerships

Other USAID cross-sectoral collaborations: Challenge Funds Grand Challenges (Saving Lives at Birth, Securing Water for Food) HANSHEP/SHOPS Health Enterprise Fund Global Development Lab Office (Global Development Alliances housed) 1,600 alliances with over 3,000 distinct partners leveraging nearly $19 billion in combined public and private resources since 2001