For the SDC, local economic development is not just an economic matter but a cooperative approach which provides an excellent tool for bringing together different interest groups to agree on local cooperation that can help create jobs and income, in addition to improving governance.

SDC focus

Moreover, local economic development can also strengthen governance at national level. In countries like Kosovo or Burkina Faso, the SDC conducts local economic development activities which have been implemented simultaneously in several towns. This has enabled municipalities (or rather territories, because each town has close links with its peri-urban and rural hinterland) to exchange information and experience that are specific to them. This has led to better cooperation among local authorities and thus added weight to the local dimension in dialogue with central government.

Background

Local economic development brings together various stakeholders from civil society, as well as the public and private sectors. Its goal is to promote cooperation so as to develop a given area. Cooperation is a key factor in governance. Local economic development (LED) triggers a political process in which the protagonists have to negotiate the priorities bearing in mind the limited human and financial resources at their disposal.

Forces that drive the economy

Economic considerations drive the private sector. Cooperation on creating public goods, such as improved framework conditions for investment, calls for a private-public collaboration that is built into concrete projects ("We'll build the road, and you'll build the factory. You tell us what's not right about the investment climate, and we'll put it right."). In this way, combined LED efforts create new business prospects. The public sector needs the private sector for local economic development.

In virtually every country, it is the private sector that creates most jobs and generates income, and jobs and income are a priority for the public sector's customers and voters. Poverty reduction and – perhaps more important for a civil servant – re-election of the mayor and his staff depend on the generation of income.

Governance as a process

Civil society, like local associations, should also be part of planning and implementing development projects in which the economic dimension is obviously not the only issue at stake. The State and local government do not cover all the ground. So the three stakeholder groups – the public and private sectors and civil society – negotiate and cooperate on the basis of concrete information derived from evaluating the strengths and weaknesses of the local economy, as well as the opportunities and risks involved. This dynamic exchange between partners improves governance at local level.

Current projects

Object 1009 – 1020 of 1029

Environmental and Social Risk Management Program

01.09.2015 - 31.12.2022

The Environmental and Social Risk Management Program will be implemented in three countries in Sub-Saharan Africa (Ghana, South Africa and Nigeria). Its aim is to ensure that lending to economic activities does not come at the cost of human well-being, natural resources and vital ecosystems.


Khorog Solid Waste Project

01.05.2015 - 31.12.2022

The project aims at improving the current waste management in Khorog City by combining investments into modern equipment and infrastructure with strong institutional support, while taking into consideration the environmental and social circumstances.


Water sanitation in 10 medium-sized cities

01.04.2015 - 30.06.2022

This program includes the construction and expansion of existing sewerage systems and the construction of waste water treatment plants (WWTP) in medium-sized cities in Tunisia. It is planned to dedicate the Swiss financing for the construction of the WWTP in Tajérouine, for complementary measures and for the implementation consultant.


Green Transport Development Project, Ho Chi Minh City

01.01.2015 - 31.12.2025

Co-financed together with the World Bank, the Green Transport Development Project aims to improve the performance and efficiency of public transport in Ho Chi Minh City, Vietnam, by developing a Bus Rapid Transit System (BRT), as well as to promote the integration of public transport with urban development.


Pilot Auction Facility for Methane and Climate Change Mitigation Framework

31.10.2014 - 31.12.2022

The Pilot Auction Facility for Methane and Climate Change Mitigation ("PAF") is an innovative results-based climate finance facility aimed at stimulating investment in low-cost greenhouse gas emission reductions. The PAF would auction put options that guarantee a floor price on carbon emission reduction credits ("ERs").


Bishkek Water Supply Project II

30.09.2014 - 30.06.2022

SECO has a longstanding partnership with the Kyrgyz Government aiming to develop and strengthen the urban water and sewerage sector of the country. Responding to the significant institutional and infrastructural needs, SECO engaged in 2009 in the Bishkek Water Supply Project (Phase I) on co-financing basis with EBRD. After the positive results achieved in phase I and taking into account the still existing need of the city, it was decided to contribute to a second phase of the project. This project will further rehabilitate the water and waste water infrastructure of Bishkek, the capital of the Kyrgyz Republic. The project with an overall budget of EUR 17,6 million, will be financed by an EBRD loan of EUR 8,5 mio., a grant by GEF of EUR 1,15 mio. and a grant by SECO of EUR 7,98 mio.


Financial Sector Development and Reform Program

01.06.2014 - 31.08.2023

The second phase of the Financial Sector Development and Reform Program (FSDRP 2) is to support the South African government in improving financial inclusion while at the same time strengthening financial stability.


GEDAP III Ghana Electricity Sector Support Project

01.05.2014 - 30.06.2022

This project supports Ghana's efforts to provide national access to electricity. It does so by financing the extension of the electricity distribution network, and by strengthening the managerial, commercial and technical capacities of main sector public actors. The project also promotes energy efficiency and the development of renewable energies.


National Solid Waste Management Program for Egypt

01.03.2014 - 31.12.2023

The National Solid Waste Management Program aims at supporting the establishment and implementation of effective policy, legislation and institutional arrangements for municipal solid waste management in Egypt, coupled with the implementation of related infrastructure.


Energy Efficiency Zhytomyr

01.01.2014 - 31.12.2022

The project aims at improving the municipal infrastructure and its energy efficiency. To do so, the district heating network will be rehabilitated, capacity will be built and the awareness about energy efficiency and renewable energy will be raised. The project will accompany Zhytomyr on its way to becoming an energy-efficient city.


Sanad Fund

01.01.2014 - 31.03.2028

The Sanad Fund is an investment vehicle, that provides debt and equity financing to banks and microfinance institutions. The ultimate beneficiaries are micro, small and medium-sized enterprises. The Middle East and North African region is the main target region of the Sanad Fund.


Improved Water and Wastewater Services Program - Phase II

01.07.2013 - 31.12.2023

The Improved Water and Wastewater Services Program - Phase II (IWSP II) plans to increase the coverage of water supply systems and wastewater treatment infrastructure in four Governorates of Upper Egypt (Qena, Assiout, Minya, Sohag).

Object 1009 – 1020 of 1029