IC Forum 2025: How economic growth contributes to transformation

The International Cooperation Forum is being held for the fourth time this year. Leading experts from politics, the economy, research, philanthropy and civil society will meet on 27 and 28 February 2025 at ETH Zurich, where they will discuss economic growth in developing and transition countries. The event will be jointly organised by the Federal Department of Foreign Affairs (FDFA) and the State Secretariat for Economic Affairs (SECO), which is part of the Federal Department of Economic Affairs, Education and Research (EAER). Ignazio Cassis, Head of the FDFA, and Guy Parmelin, Head of the EAER, will attend the forum.

The 4th IC Forum on economic development will address various questions.

The 4th IC Forum on economic development will address various questions. © FDFA

The International Cooperation Forum provides a platform for critical dialogue that aims to encourage mutual learning. This year's event focuses on economic growth in developing and transition countries. International cooperation actors will work in partnership with the private sector to promote sustainable development and growth. The key topics include sustainable financing, promoting entrepreneurship, integration into global value chains and innovation. To take part in the event, you can register directly here.

Transformation towards sustainable development is seen as a socially organised process where not just institutional, but also social and economic structures are relevant. As a key component in economic structures, the private sector contributes to market-driven solutions which improve production and access to key goods and services in developing and transition countries, in turn raising living standards. 

Consistently promoting the private sector and helping to establish good economic conditions in developing and transition countries are key elements of Switzerland's International Cooperation Strategy 2025–28. Switzerland supports international standards and good corporate governance practices, as well as environmental, economic and social sustainability and respect for human rights. 

Swiss solutions for sustainable trade

Portrait of Monica Rubiolo, Head of Trade Promotion at SECO.
Monica Rubiolo, Head of Trade Promotion at SECO. © SECO

After the opening address by Federal Councillor Guy Parmelin and a presentation by WTO Director-General Ngozi Okonjo-Iweala, the IC Forum will begin by focusing on three different thematic blocks. One will look at the sustainable trade of cocoa.

Cocoa beans provide a livelihood for around six million people earning an average per-capita income below the poverty threshold of 2.15 US dollars a day. The Swiss Platform for Sustainable Cocoa (SWISSCO) aims to improve living conditions for cocoa farmers, to protect natural resources and to promote biodiversity in the countries where cocoa is grown. SWISSCO brings actors in the cocoa and chocolate industries, state authorities, NGOs and research institutions together to find innovative solutions.

Monica Rubiolo, a SWISSCO Board member and Head of Trade Promotion at SECO, understands the challenges in the cocoa industry in terms of social and environmental sustainability. 

What opportunities and challenges does the sustainable production of cocoa and chocolate present?

Cocoa is grown by smallholders in various tropical countries in Africa, Asia and Latin America. Growing cocoa helps provide a livelihood for around 50 million farmers and their families worldwide. However, these smallholders are exposed to various risks, such as price fluctuations, climate change and pest infestations, etc. The smallholdings are usually very modest in size and their productivity very low. The combination of these factors means cocoa growers often struggle to generate sufficient income to live off. This poverty sometimes results in the use of child labour in the fields or deforestation to provide new farmland.

A broad-based approach is required to break this vicious circle between unsustainable farming and poverty. More stable and higher farm-gate prices, more resilient crop varieties and productivity improvement measures can help to improve the situation. This requires cooperation between all market stakeholders, including governments in the countries where cocoa is grown.

The share of sustainable cocoa imports to Switzerland rose from 55% to 82% between 2018 and 2023 – how was that achieved?

SWISSCO members set a target of ensuring that all cocoa imported into Switzerland comes from verified sustainable production by 2030. This requires commitment and cooperation from all stakeholders – wholesalers, chocolate producers, retailers, civil society, research and government. 

SWISSCO members set a target of ensuring that all cocoa imported into Switzerland comes from verified sustainable production by 2030.

We are proud to have already achieved the interim goal set by members of reaching 80% sustainable imports by 2025. However, there is still some way to go before the goal of complete sustainability is achieved.

What role does the state play in promoting the sustainable production of cocoa?

As the public sector's representative on the SWISSCO platform, SECO facilitates cooperation between the various actors. It achieves this goal through specific projects by supporting a) the acquisition of knowledge and exchange of experiences between members, b) innovations in sustainable farming methods and c) cooperation between various stakeholders based on a landscape approach. This kind of approach aims to achieve a broader-based impact by reaching farmers and sections of the population outside of international value chains.

However, the states in the producer countries also play a key role by establishing the conditions for cocoa production. We are attempting to leverage political dialogue to engage in constructive talks with governments in producer countries to help them create sustainable conditions.

Seeking solutions together and seizing the opportunities available to promote sustainable development is the key factor.

Finally, we'd like to ask you two of the key questions to be addressed at the IC Forum 2025: 

What matters?

Seeking solutions together and seizing the opportunities available to promote sustainable development is what really matters. In specific terms, all stakeholders in the cocoa sector must do more to improve the social and economic conditions of cocoa farmers and environmental protection. This means raising living standards in the countries of origin by improving productivity and access to international markets. Cocoa production's carbon footprint must also be minimised and biodiversity preserved. Making production sustainable is a fundamental element in creating a stable economic structure in the regions where cocoa is grown. This also gives the Swiss economy long-term access to raw materials produced sustainably. 

What is sustainable?

Sustainability means adopting an approach today that meets current requirements without jeopardising the ability of future generations to fulfil their own needs. In relation to cocoa production, this means assuming both environmental and social responsibility. The goal is ensuring cocoa growers can work under fair conditions and live a dignified life, while also protecting the environment by promoting biodiversity and cutting CO2 emissions. Sustainability is multidimensional, covering nature conservation as well as ensuring people are treated respectfully and resources and wealth are managed fairly.

The local private sector – the backbone of prosperity

Portrait of Patrick Egli, Co-Head of the Economy and Education section at the Swiss Agency for Development and Cooperation (SDC).
Patrick Egli, Co-Head of the Economy and Education section at the Swiss Agency for Development and Cooperation (SDC). © SDC

The second day of the IC Forum 2025 will focus on another thematic block – the local private sector in Swiss international cooperation's partner countries. This will explore innovative ways in which investment can leverage the private sector's potential as the backbone of prosperity in developing and transition countries.

One innovative example of this is Aceli Africa, a market-oriented platform that aims to secure finance for small and medium-sized enterprises (SMEs) in the agricultural sector. Thriving SMEs play a key role in creating decent employment and income. They provide a tremendous opportunity for boosting the agricultural sector in East Africa and meeting rising demand for food.  This programme aims to promote a competitive and efficient lending market and to obtain reliable impact data, demonstrating the economic benefits of loans.

Patrick Egli understands the opportunities and challenges presented by sustainable economic growth. Before taking up the position of Co-Head of the Economy and Education section at the Swiss Agency for Development and Cooperation (SDC), he was responsible for international cooperation's economic portfolio in Bosnia and Herzegovina.   

Which opportunities and challenges do you believe the 'Aceli Africa' project presents for sustainable economic growth in East Africa?

Agriculture is a vitally important sector in terms of value creation and employment in East Africa, especially for poor people in rural areas. Despite over 60% of East Africa's population working in agriculture, the sector still remains chronically underfunded. There are thousands of SMEs that rely on loans to purchase, process, store and sell agricultural products (food, seeds, etc.) in order to boost their productivity. However, there are few banks or credit systems willing to lend to these SMEs due to the high risks associated with the agricultural sector and the relatively low levels of return. This means growth potential cannot be fully exploited, which has negative effects on employment and supply. To tackle this issue, Aceli supports commercial lenders and impact investors and offers intelligent incentives to secure financing solutions for agricultural enterprises that generate low earnings but make a big impact in Africa. Aceli's approach has a positive impact on the livelihoods of farmers, workers, their communities and the local environment.

Aceli Africa is part of the 'innovation and investment' thematic block. What would you say makes this an innovative investment project?

Aceli is adapting an innovative financing approach to the new context of agricultural loans in Africa. It provides social impact incentives (SIINC) which were jointly developed by the SDC to finance social and impact companies. Incentives represent an extremely successful way of making effective use of limited financial resources. Banks are given guarantees and bonuses to reduce the risks and lower the cost of loans provided to SMEs in the agricultural sector. This opens up investments that effectively support development in the vitally important segment of farming SMEs in the agricultural sector. Lenders also receive bonuses for granting loans to SMEs run by women and young people and projects that help to protect the environment and improve food security. The first years of the project have shown that small incentives are enough to secure bank investments in the agricultural sector. Some 41 banks and impact investors have already become Aceli partners since 2020 and over 2,800 loans worth over 145 million US dollars have been granted.

What short-term and long-term impacts can investment programmes like Aceli Africa have on economic growth and the local population?

The project has already had a positive impact on over 1.3 million smallholders.

Clearly it's not just about providing loans but, above all, the actual results achieved in terms of development. The project has already had a positive impact on over 1.3 million smallholders, for example, by enabling them to sell their products on better terms. The participating SMEs have already created more than 43,000 jobs, 39% of which were for women gaining a permanent income they did not have before. Analysis is still being carried out on the change to smallholders' income. The results are very encouraging. 

Growth is a major way of driving development forward. The type of growth required puts sustainability on an equal footing with economic factors, while also incorporating environmental and social aspects.

Finally, we'd like to ask you two of the key questions to be addressed at the IC Forum 2025: 

What is growth?

Growth is a major way of driving development forward. The type of growth required puts sustainability on an equal footing with economic factors, while also incorporating environmental and social aspects. These three dimensions must be in harmony and mutually support one another - as they do in the Aceli project. Achieving this requires good framework conditions, a strong private sector, innovative capacity, capital and a workforce with the relevant skills. The IC Forum 2025 will explore all of these aspects. 

What is it worth?

The UN Sustainable Development Goals can only be achieved in partnership with the private sector. Growth is not an end in itself. The economy must be transformed to improve sustainability. This presents challenges for our economies, but also opportunities for less developed countries to get on board right from the outset. The IC Forum will highlight some exciting approaches and I am already looking forward to the discussions.

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