Private companies globally account for more than 90% of job creation and represent a major source of economic growth and tax revenues. However, companies’ ability to grow and to create more and better jobs critically depends on a well-functioning business environment, investment and trade climate. To promote this, innovation-friendly, clear and simple regulations are needed. By supporting both economy-wide and sector specific regulatory reforms, MCICP contributes to increased competition, the creation of a level playing field, innovation and thus to economic growth in order to reduce poverty.

MCICP aims to foster reliable economic framework conditions for robust private sector growth, to design and implement systemic investment climate reforms, and to create more decent jobs.

Overall, MCICP supports advisory services for open, productive, and competitive markets and unlocks sustainable investments in sectors that contribute to growth, job creation and poverty reduction. Over the period 2022-2026, the Program will implement economy-wide and sector-specific reforms that (i) reduce compliance costs for the private sector- (ii) generate and retain existing investments- (iii) create decent jobs and expand opportunities for women- (iv) increase productivity- (v) enable companies to access (international) value chains- (vi) assist client countries in recovering from the economic impacts of the COVID-19 pandemic- (vii) provide advisory and technical support on climate mainstreaming and digitalization.

Investment Climate Reforms in partner countries are implemented at economy-wide and sector specific levels (e.g. business entry regulations, inspections regimes, licensing regulations, business exit regulations).

Better linkages between trade and investment are enabled by investment and trade climate reforms (primarily in agriculture, manufacturing and services, including tourism).

Competition Policies are enhanced and fair and equal competition among companies enabled.

Cross-cutting themes are promoted (climate, gender, governance, digitalization), notably in view of recovery from the economic impacts of the COVID-19 pandemic.

Expected results:  

Country level: Advisory and technical assistance are delivered in targeted themes related to investment climate, policy issues, reforms and implementation, competitiveness, capacity building and promotional instruments.

Global level: knowledge and analytical tools are produced (on investment climate reforms, international best practices or impact of COVID-19 on doing businesses- scaling-up of climate-related activities).

Results from previous phases:  

Under MCICP, Phase I, 28 projects in 17 SECO partner countries contributed to the results, at impact level:

Ten important Investment Climate reforms in 6 SECO priority countries supported- over USD 2.5 million direct compliance costs savings reached-

over USD 9 million investments generated.

An external mid-term evaluation of MCICP, Phase I in 2021 found the Program to be successful across all DAC criteria. The evaluation focused on: 1) Governance and management, 2) Portfolio review, and 3) Project level review.

The MCICP Program helps to address 5 out of the 17 SDGs: SDG 1 (poverty), SDG 5 (gender), SDG 8 (decent work and economic growth), SDG 9 (industry, innovation and infrastructure, and SDG 13 (climate action).