The Evaluation, Learning and Quality (ELK) Department in the Ministry of Foreign Affairs of Denmark (MFA) is commissioning an independent evaluation to evaluate the Danish support for improving the framework conditions for Private Sector Development (PSD) in the Global South.

The objectives of the evaluation are:

— to document and analyse the relevance, coherence, effectiveness (focusing on outcomes/impact), efficiency (including value for money), sustainability of the Danish support for improving the framework conditions for PSD from 2008-2021;

— to prepare recommendations for relevant Danish programmes and initiatives already in place as well as the future Danish support for improving the framework conditions for PSD.

This evaluation will specifically focus on Danish supported programmes and actors that improve the framework conditions for PSD in the Global South. PSD is for the purpose of this evaluation considered a public good that contributes to economic development and poverty reduction in the Global South.

The evaluation should apply the Donor Committee for Enterprise Development (DCED) definition for the ‘business environment’ and ‘business environment reform’, as formulated in its 2008 Donor Guidelines for Business Environment Reform. This includes reforms that span the four ‘levels’ of the business environment (i.e., regional, national, subnational, and sector) as well as the ‘functional areas’ of business environment reform. However, beyond this somewhat narrow definition and scope, the evaluation should accommodate a set of programming themes that are found across the Danish PSD programming.

In accordance with OECD/DAC Quality Standards for Evaluation (2010) and the Danida Evaluation Guidelines (January 2018), the evaluation must be based on a clearly outlined methodology. Tenderers are expected to present an initial approach and methodology of the evaluation at the tender stage. During the inception phase, the evaluation team will present and justify the proposed portfolio to be included in the evaluation, thoroughly analyse available documents and reports, and propose a detailed evaluation framework and approach for the evaluation including the below case studies.

In four case countries (Kenya, Tanzania, Ghana and Mali), the evaluation will analyse how the bilateral country programmes have contributed to conducive framework conditions for PSD and how synergies may have been created with global/regional initiatives (Aid for Trade, Danida Sustainable Infrastructure Finance (DSIF), Partnering for Green Growth and the Global Goals 2030 (P4G), Sector Strategic Cooperation (SSC) Labour Market Consortia LMC), Danida Market Development Partnerships (DMDP), and Danida Fellowship Centre (DFC)) and interventions by Danish NGOs and multilateral partners (through core support) funded by the MFA. The unit of analysis is thus the country level. Missions are expected to all case countries. These country cases will be an important source of knowledge on what works on the ground in terms of the evaluation themes.

Beyond the four country cases, a thematic case study should be designed to analyse how the Danish portfolio of PSD projects and programmes has contributed to improved framework condition through Business Advocacy Funds. Over the years significant resources have been allocated to establishment of such funds. These funding facilities have provided funding and capacity building support to private sector organizations and academia. Funding has been provided for projects targeting a specific constraint and advocate for an improved business environment. The approach adopted by the individual funds have varied from country to country and evolved over time. All advocacy funds, to varying degrees, have however operated as challenge funds and have provided funding for a variety of actors. Data for the thematic case study will among others be collected during the field missions to Kenya, Tanzania, and Ghana. There will not be a field mission to Mozambique so the FAN Fund in Mozambique will be evaluated as a desk study combined with virtual interviews and the survey.

It is expected that the Consultant will use 80 % of its consultancy hours on the case studies and 20 % on analysing data across the case studies.