Rethinking Development Cooperation: How Business, Localisation and Accountability Drive Sustainable Impact

In the 2030 Agenda it is clear that public money alone cannot deliver sustainable development. Governments therefore increasingly involve companies: bilateral aid flowing directly to local firms climbed from about US$1.3 billion in 2016 to US$3.1 billion in 2022. At the same time, international guidelines stress that localisation – shifting decision‑making and resources to the people affected – and accountability determine whether projects succeed. This article explores how these trends interact and how Koller Impact Consulting helps you act in partnership and with real impact.

Why business matters – but not on its own

Companies bring capital, innovation and business models that can scale social projects. An OECD report shows that more development agencies are funding local businesses directly. Positive examples include Spain’s Huruma Fund, which combines microfinance with training for small‑holder farmers in value chains such as coffee, cocoa and bananas, and Switzerland’s SECO, which partners with producers in Peru to upgrade the coffee, cocoa and sugar value chains. These partnerships mix finance with technical expertise and market access.

Yet there are risks: An OECD commentary warns that donors are leaning on profit‑seeking corporations to compensate for declining multilateral funds; such firms often lack local knowledge and may capture public goods. Robust governance and a clear public mandate are therefore essential.

Guiding principles: the Kampala Principles and localisation

Responsible engagement with business is anchored in international frameworks. The Kampala Principles (2019) set out five guiding principles for effective private‑sector partnerships:

• Inclusive country ownership: initiatives should align with national development plans and build local capacity.
• Results and targeted impact: projects must deliver measurable outcomes and aim for sustainable change.
• Inclusive partnerships: government, business and civil society must all be involved.
• Transparency and accountability: information and decision‑making must be open, with clear channels for feedback and grievances.
• Leave no one behind: special risks for vulnerable groups must be actively addressed.

Localisation goes beyond rhetoric. The Global Nutrition Cluster describes it as acknowledging and correcting power imbalances by investing in local skills, leadership and resources. Local organisations respond faster, bring deep contextual knowledge and ensure that solutions endure. A UNDP study in Palau found that trust in public institutions grows when formal accountability systems (laws, audits, open data) work together with traditional practices of mutual responsibility.

Community engagement and citizen accountability as success factors

Sustainable development only works when those affected are actively involved. The IFRC defines Community Engagement and Accountability (CEA) as recognising community members as equal partners: their opinions guide programming, communication is transparent and accessible, and there are channels for feedback and complaints. An OECD blog underscores that private or humanitarian support must be coupled with social accountability; this synergy can dramatically improve how responsive governments are to their citizens.

A broader definition of accountability sees it as the right to demand answers and the duty to provide them – including the ability to question and, if necessary, sanction public actors. Without such structures, profit motives risk eclipsing the common good.

A local theory of change: from inputs to impact

To make collaboration with business effective, a clear impact framework helps. Drawing on research and practice, a theory of change might include:

1. Input & context: defining local priorities together; identifying companies that align their business models with the Sustainable Development Goals; donors committing resources directly to local actors.
2. Activities: co‑designing programmes with community representatives, authorities, civil society and business; building local capacity; setting up feedback and complaint mechanisms; integrating gender and inclusion; developing joint risk and monitoring frameworks.
3. Outputs: more local ownership of projects; diversified financing (blended finance, impact investments); improved service quality; better data on needs and outcomes.
4. Outcomes: stronger trust between communities, business and public institutions; more resilient local economies; greater agency for marginalised groups; scaled innovations; reinforced accountability mechanisms.
5. Impact: sustainable, just development in which communities are active shapers; reduced dependency on external aid; private engagement that protects public goods and respects human rights.

This aligns with a Brookings recommendation to create a system‑wide theory of change for locally led development and to recognise the links between humanitarian and development assistance.

How Koller Impact Consulting supports you

Based in Switzerland, we partner with NGOs, authorities and companies seeking to create positive impact. Our services are grounded in science and tailored experience:

• Strengthening local ownership: We moderate participatory needs assessments and establish local advisory boards so that initiatives reflect local strategies and priorities. This fosters genuine local leadership.
• Facilitating inclusive dialogues: In workshops we bring together business, civil society, authorities and communities. These dialogues build trust, incorporate diverse perspectives and lead to workable solutions.
• Embedding accountability: Following CEA principles we help set up feedback loops and community‑led monitoring. We develop transparent complaint and information channels and train local partners in contracts and performance management.
• Building capacities: We coach local NGOs and SMEs in financial management, project control and monitoring. We support compliance with donor requirements, strengthening the independence of local actors.
• Structuring blended finance: Through our network of impact investors and companies we design financing instruments that support social enterprises and cooperatives. We prioritise projects that create decent jobs and uphold human rights.
• Developing impact frameworks: Together with our partners we craft a context‑specific theory of change and define indicators that capture both quantitative results and qualitative shifts in power and accountability. Our adaptive management adjusts programmes based on context and feedback.

Your next step

Partnering with the private sector in development offers enormous opportunities – provided it is grounded locally and underpinned by clear accountability. If you aim to design projects that deliver both impact and respect for local communities, Koller Impact Consulting is your trusted partner.

Get in touch with us to co‑create partnerships that empower communities, harness private innovation and generate lasting impact.