Guidance

Private Sector Development: Technical Competency Framework

Updated 23 May 2024

1. About the FCDO Advisory Cadres

World-leading technical and analytical capability is central to FCDO’s mission. FCDO Advisers embody these capabilities, playing a key role in the delivery of the UK’s international objectives and development impact in particular.

Advisers have a central role in the design, implementation, appraisal, and evaluation of international development programmes;

• in the development and implementation of foreign and development policy
• in diplomacy and international partnerships

They play an expert role in inter-disciplinary thinking and thought leadership, linking programmes and bringing deep expertise to maximise impact. They have strong links with specialist networks, research organisations, and professional bodies in the UK and globally.

Advisers are accredited to one or more of 13 Advisory Cadres. These are professional bodies within FCDO and cover:

• climate and environment
• conflict
• economics
• education
• evaluation
• food and agriculture
• governance
• health
• humanitarian
• infrastructure
• private sector development
• social development
• statistics

The Economics, Statistics, and Evaluation Cadres are linked to government-wide advisory services. Each Cadre has a Head of Profession (HoP), who is responsible for ensuring that professional standards are maintained both within the Cadre and for those wishing to join. The HoP provides thought leadership, quality assurance, and supports continuous professional development.

Adviser Capabilities

Advisers have certain capabilities in common. These include but are not limited to the following:

• expertise and thought leadership in international policy and investment, applicable across a range of themes and geographies, and with a focus on development impact
• use of evidence to inform policy and programming including the use of political economy analysis
• policy and programme delivery, from design through to implementation and appraisal
• international influence and diplomacy, thinking and working politically and cooperatively, and through appropriate challenge, to shape norms and approaches
• brokering partnerships with governments, civil society, the private sector, multilaterals, research organisations and professional bodies in the UK and globally
• delivering value for money by applying key economic and commercial concepts
• safeguarding to ensure the UK does-no-harm by integrating gender equality, child protection, disability inclusion, preventing sexual exploitation and abuse, and sexual harassment
• tackling climate change and restoring nature, ensuring that programmes are aligned with the Paris agreement on climate change and UK commitments on nature
• embodying Civil Service behaviours in applying, communicating, influencing, and leading technical and evidence-informed processes and engagement
• knowledge of data relevant to the operating sector and context and applying professional expertise in the interpretation and analysis of this in support of intended outcomes
• systems thinking, recognising inter-linkages, real-world dynamics, and complexity to help design effective policies and interventions
• innovation and digital development, proactive in exploring and validating innovative approaches, technology solutions and creative ways to address the world’s challenges

2. Private Sector Development Advisers

FCDO’s Advisers on Private Sector Development work on some of the most challenging topics of our times – for example, helping the private sector in developing countries to transform to a low-carbon economy; encouraging trade and investment in emerging markets; creating quality jobs, goods, and services to achieve the Global Goals; building markets and global supply chains that are resilient and inclusive.

Advisers interpret, design, and deliver policies, programmes and initiatives through the lens of the private sector. They understand and analyse how firms and markets operate and respond to regulation, incentives and the political economy. They recognise constraints and opportunities for trade, innovation, and growth. They apply these skills to a wide range of FCDO’s work, mainly but not exclusively in developing country contexts. They support Ministers, HMG and FCDO colleagues to understand and engage with the private sector, influencing policies and regulatory frameworks affecting economic structure and market activity, promoting responsible business, partnerships, and reforms.

PSD Advisers have practical experience of working in and with the private sector and bring understanding of business incentives and ways of working. Advisers combine this understanding with expertise in different financial instruments and approaches, and knowledge of key sectors. They are familiar with the latest evidence, as well as techniques in monitoring, evaluation and learning to maximise impact. They communicate private sector concepts to a non-technical audience.

PSD Advisers come from a range of backgrounds, for example, banking, accountancy, investment, and wider industries as well as government departments, academia, multilaterals and the NGO sector. They share an excellent understanding of the theory, evidence, and practice of the private sector’s contribution to economic growth and development as well as the obstacles to such growth.

3. Private Sector Development Technical Competencies

The technical competencies are outlined below. The competency descriptions list issues of relevance and importance but are non-exhaustive.

Competency 1: core - market systems and business fundamentals

Knowledge and Practice areas:

An Adviser can:

1.1 Describe and explain the characteristics of well-functioning markets that produce goods and services, create jobs, generate incomes, tax revenues and have an impact on the physical and virtual digitalisation, environment.

1.2 Describe and explain the key features of market failure, externalities, environmental impact, information asymmetries, political economy, informality, the case for government intervention and the risks of distorting markets and government failure.

1.3 Explain a market systems approach, understanding the core market, supply chains, the role of supporting functions and rules, together with inter-linkages, incentives and externalities.

1.4 Describe and analyse the drivers of productivity that improve earnings at firm and sector-level such as management capacity, skills, innovation, technology, digitalisation, environmental sustainability and entrepreneurship.

1.5 Explain key concepts in business ownership e.g. the differences between partnerships; sole traders; limited liability companies, the role of shareholders and directors, how businesses grow over time, raise finance and can close down. The differences between public (listed companies) and private ownership.

1.6 Explain the importance of corporate governance, including the basics of business accounts, risk management, climate and nature risks, ESG standards and regulatory compliance.

1.7 Recognise and acknowledge the political economy dimension to private sector development, including elite capture, rent-seeking behaviour, political settlement and bargains.

Enabling an Adviser to:

1.8 Engage with the different business stakeholders, advisers, associations, government agencies and businesses and understand where they fit in the broader ecosystem.

1.9. Understand and anticipate private sector behaviours and responses to government proposals and policies thereby improving policy effectiveness and implementation.

1.10 Design, manage, evaluate and influence appropriate and inclusive market systems development programmes in different markets.

1.11 Assess the adequacy of corporate governance models and practices when engaging with public and private actors, including state-owned enterprises. This includes issues of transparency, accountability, legitimacy and ethics, including social and environmental responsibility.

1.12 Improve responsible business practices, standards and safeguards including against environmental degradation, modern slavery, child labour, sexual exploitation, abuse and harassment.

1.13 Build strategic corporate partnerships and private sector engagement with companies and organisations to achieve joint objectives in inclusive growth and social or environmental impacts.

Competency 2: investment and finance

Knowledge and Practice areas:

An Adviser can:

2.1 Assess information and data on the investment climate and its contribution to competitiveness in regional and global markets. This will include an understanding of the political economy as well as such things as foreign exchange policies, industrial policy, tax, profit-shifting, the implications of land and labour rules, competition law.

2.2 Assess the evidence and role of special economic zones, investment policies and treaties, dispute resolution processes, investment/export promotion agencies.

2.3 Describe and interpret investor decision-making including appraisal and due diligence tools, risk appetites, cost and return expectations and exit routes.

2.4 Describe and explain the role of financial sector development in driving inclusive and low-carbon economic growth and poverty reduction, in supporting domestic revenue mobilisation, green finance, digital financial inclusion and the graduation from aid.

2.5 Describe and analyse different financial instruments, capital structures, the concepts of additionality, blended finance, the use of guarantees, debt and equity investing, and their relationship to value and risk including climate risk and nature-based solutions.

2.6 Understand the range of public-private partnerships, especially in project finance, leveraging private sector capital and know-how to deliver and manage public infrastructure and services.

2.7 Understand risks of corruption and unethical business, patterns and systems of licit and illicit financial flows, including common money-laundering methods, risks in the procurement process, the role of remittance corridors and hawala systems.

Enabling an Adviser to:

2.8 Influence business environment reforms, recognising and exploiting conditions and opportunities for change, engaging government, industry bodies and business organisations to improve the nature, pace, stability and predictability of these reforms.

2.9 Promote responsible and inclusive investment practices, including measurement/standard-setting, strengthening and moving industry beyond environment, social and governance standards, consumer protection, advancing the carbon-transition and global policy discourse.

2.10 Support strengthened, sustainable, inclusive and responsible financial sectors. These can include banks, MFIs, fintechs, savings groups/cooperatives, insurance companies, pension funds, advisers, stock exchanges, regulators and capital markets. Advisers can collaborate with UK Government Departments, agencies and regulators, the City of London, International Financial Institutions, partner governments, private and sovereign investors, advisers and verifiers, designing and managing interventions.

2.11 Partner with and influence Development Finance Institutions and the private sector arms of the MDBs to invest in developing markets and to mobilise other investors.

2.12 Harness innovation and new technologies for growth sectors (e.g. fintech, energy-transition, tech, gender and climate-smart businesses, agri-business; manufacturing) by engaging with financial service providers, regulators, policymakers, investors, incubators and private companies.

2.13 Support transparency and anti-money laundering initiatives, reducing corruption/bribery, helping to improve transparency and reduce flows of illicit finance, working effectively with legal, regulatory and administrative agencies. This includes playing a role in global transparency standards initiatives and harnessing good practices from UK regulators to strengthen host country’s regulatory transparency and standards.

Competency 3: trade and supply chains

Knowledge and Practice areas:

An Adviser can:

3.1 Explain the role of trade in economic development, inclusive growth, low-carbon development and poverty reduction, with reference to value chains, trade theory, evidence and debates.

3.2 Explain the main features of international trade including trade architecture and institutions (e.g. trade agreements, the WTO and Customs Unions); the nature and pattern of global and regional trade (e.g. value chains, within-firm trade and e-commerce); and political economy issues in trade and regional integration.

3.3 Assess trade performance and trade competitiveness by assessing data at the firm, sector and country level.

3.4 Explain barriers to trade including those related to trade facilitation, tariff and non-tariff barriers, trade logistics, infrastructure, trade finance, foreign exchange and methods of raising complaints and disputes.

3.5 Explain ‘aid for trade’, including trade promotion and support services, enterprise services such as product development and building export capacity, and compliance with international standards.

Enabling an Adviser to:

3.6 Influence trade policy and policy dialogue with Governments, development partners, businesses and CSOs to improve the conditions for trade and to build diversified and sustainable supply chains for commodities and services. This should include a strong awareness of the political economy.

3.7 Harness the value of bilateral and multilateral economic dialogues to reduce tariff and non-tariff market access barriers and to boost trade and investment opportunities.

3.8 Contribute to trade agreements, recognising the importance to the private sector of tariff schedules and rules of origin, standards, issues around trade in services, dispute resolution, public procurement.

3.9 Design, manage, monitor and evaluate different types of trade programmes that enhance the benefits of trade, reduce barriers to trade and improve trade agreements.

3.10 Support the role of different UK government departments in promoting trade, including how British firms and interests can benefit from bilateral and multilateral agreements, including the role of UKEF to expand trade and crowd-in investment.

Competency 4: green growth and innovation

Knowledge and Practice areas:

An Adviser can:

4.1 Describe the common and unique attributes of green finance, carbon markets, social impact and gender finance (among other new areas) and how they address gaps and face challenges.

4.2 Explain outcome-based funding models that cooperate with the private sector to deliver impact, including outcome funds and impact bonds.

4.3 Appreciate the capacity of the private sector to innovate, responding to incentives, creating new goods and services, new ways of doing things, taking risks, tax planning and capturing rewards.

4.4 Describe the circular economy and strategies that firms can adopt to achieve net zero carbon emissions, critiquing their approaches where appropriate.

4.5 Understand the key elements digital transformation of economies that is inclusive, responsible and sustainable, applied to developing and emerging markets. This can include last-mile connectivity technology and business models, as well as policies and regulatory frameworks that create a conducive business environment and investment climate for digital development.

4.6 Understand the basics of emerging technologies that can create, disrupt or transform markets. These can include the Internet of Things, use of distributed ledgers / blockchain, digital currencies, artificial intelligence, drones, satellite mapping, digital solutions for climate change adaptation and resilience.

Enabling an Adviser to:

4.7 Build relationships and partnerships with UK and non-UK firms, private sector representatives and the public sector to stimulate and shape innovative approaches to market developments.

4.8 Design, manage and monitor economic development programmes and policies that promote inclusive and low carbon growth, including identifying and mitigating risks to people and the planet.

4.9 Support public and private sector partnerships that mobilise finance sharing risks and returns appropriately, including climate finance – using de-risking and blended finance mechanisms where appropriate.

4.10 Understand and promote digital development that drives inclusive, transformative, responsible and sustainable application of digital technologies to enable private sector development.

4. Assessing Capability

Assessments will focus on the extent of knowledge and practice across the areas, with depth of knowledge and practice determining the level of capability at which to accredit. All PSD Advisers expected to have knowledge and practice in the Core Competency, which is Competency 1 – Market Systems and Business Fundamentals. They are not expected to have equal knowledge and practice in all competencies or necessarily in developing countries. However, they are expected to provide evidence of knowledge and demonstrate either direct or transferable practice experience, as below:

• practitioner: knowledge and practice in the Core Competency (No.1) plus one other competency from the list. (i.e., 2 out of 4)
• expert: knowledge and practice in the Core Competency (No.1) plus two other competencies. (i.e., 3 out of 4)
• senior expert: knowledge and practice across all 4 competencies with specialist expertise or leadership in at least one competency

Assessments will be based around a review of evidence that describes the extent of knowledge and expertise applicants hold in the relevant competencies, and against capability levels from the FCDO Capability Framework: Awareness, Foundation, Practitioner and Expert (within Expert HoPs Group differentiate between Expert and Senior Expert). Note that for Senior Expert level, candidates will be expected to demonstrate their technical leadership and their ability to communicate and influence using their technical skills and command of the evidence.

The TCFs are structured so that competencies are clearly defined and can be expressed at Practitioner, Expert and Senior Expert as follows:

Practitioner:

• strong and confident day to day application of capability in common or standard situations but may need to seek expert support on more complex issues
• holds relevant experience* and may be augmented by a formal qualification of direct relevance
• minimum level for entry to the relevant Cadre – successful Technical Assessment dependent on fulfilling all stated criteria in the TCF

Expert:

• recognised for specialist or technical knowledge and/or skill, underpinned by extensive experience applying it in practice on complex issues; connected with other experts
• holds significant relevant experience* and likely to be augmented by a formal qualification of direct relevance
• standard level for entry to the relevant Cadre – successful Technical Assessment dependent on fulfilling all stated criteria in the TCF

Senior Expert:

• recognised for deep specialist or technical knowledge and/or skill, underpinned by extensive experience applying it in practice on complex issues; connected with other experts
• holds very significant relevant experience* and likely to be augmented by 1 or more formal qualifications of direct relevance
• evidence of applying specialist knowledge and skill as well as displaying leadership qualities in a range of contexts
• accreditation dependent on fulfilling all stated criteria in the TCF and assessment against 2 Civil Service Competencies: Leadership and Communicating and Influencing

*Relevant experience is defined as international work experience of direct relevance to the competency.

Examples of sources of evidence include:

• CV
• examples of technical skills being used in Situation, Task, Action, Result format
• work-based training including 10% cadre contribution
• qualification
• self-directed study
• professional development record or learning log
• project report
• published or peer-Reviewed papers/dissertation
• membership of a relevant professional body

Accreditation assessments will take into account the entire academic and professional history of a candidate and not rely solely on their last or most recent post.

Assessment Framework

The table below sets out the framework for how capability will be assessed at the competency level. The framework is based around the standard 1 to 7 scoring system used for Civil Service recruitments. During an accreditation round, the sift panel will agree a pass mark for all competencies. This could be, for example, 4. A sift will score all competencies at or above the pass mark for an applicant to pass from sift to interview. If a candidate applies for a level and does not pass, the sift panel can at their discretion agree whether they might still pass at a lower level. For example, an applicant might apply at Expert level. During the sift the panel might not pass them on all competencies, but after discussion agree to progress them to interview at Practitioner level.

Prior to interviews, the interview panel will again set a pass mark for all elements of the assessment. An interviewee must score higher than the pass mark in all areas to be considered for accreditation. If a candidate applies for a level and does not pass, the interview panel can at their discretion accredit the candidate at a lower level. Candidates who pass at a particular level cannot be considered for accreditation at a higher level, regardless of their scores. They must re-apply for accreditation at a higher level in a future accreditation round. The full set of accreditation requirements are specified in Section 5.

Standard scoring for assessment

Score	Classification	Definition
7	Outstanding Demonstration	The evidence provided wholly exceeds expectation at this level
6	Strong Demonstration	Substantial positive evidence; includes some evidence of exceeding expectations at this level
5	Good Demonstration	Substantial positive evidence of the competency or behaviour
4	Acceptable Demonstration	Adequate positive evidence and any negative evidence would not cause concern
3	Moderate Demonstration	Moderate positive evidence but some negative evidence demonstrated
2	Minimal Demonstration	Limited positive evidence and/or mainly negative evidence demonstrated
1	Not Demonstrated	No positive evidence and/or substantial negative evidence demonstrated