The Private Sector Collaboration Pathway (PSCP) Annual Program Statement (APS) outlines USAID’s approach to fostering collaborations with the private sector to address global development challenges. Issued in April 2023 and closing in April 2025, the PSCP APS allows USAID to co-create solutions with private entities that align with its development objectives, with a focus on market-based approaches and enterprise-driven development.

The purpose of the PSCP APS is to engage private sector actors in identifying opportunities and creating solutions that address both development and business interests. This may include projects in areas like economic growth, financial inclusion, and environmental sustainability. USAID emphasizes collaboration with businesses, financial institutions, cooperatives, and private foundations, while excluding government-owned entities and individuals. The goal is to develop mutually beneficial partnerships where private sector contributions—whether expertise, resources, or investment—play a critical role in achieving development outcomes.

To initiate the process, private sector entities are invited to engage in preliminary discussions with USAID. If both parties identify collaboration opportunities, USAID may invite the submission of a concept paper. Concept papers must outline the problem being addressed, proposed activities, roles of all partners, expected outcomes, and the contributions of resources by both USAID and the private sector. The submission must include details of market-based approaches and how the collaboration will lead to sustainable outcomes without further USAID funding.

USAID evaluates concepts based on their alignment with the APS objectives, the potential value of the outcomes, and the ability of the collaboration to meet development goals. Successful concepts move forward to a co-creation process where the details of the partnership are refined, including roles, resource commitments, and specific activities. The final step is the issuance of an award, which can take the form of grants or cooperative agreements.

This APS provides flexibility for USAID to enter into various forms of partnerships, supporting activities that contribute to shared business and development interests. While there is no predefined funding ceiling, awards depend on the availability of funds from specific USAID Missions, Bureaus, or Independent Offices. Interested parties must establish communication with USAID to begin the co-creation process and align their objectives with USAID's development priorities.