Contribution to the Peace Dividend Initiative (PDI)

In a global context of increasing fragility but constrained resources, Switzerland is searching ways to leverage contributions of the private sector to scale-up support to peace and development. The Peace Dividend Initiative (PDI) proposes an innovative, yet ambitious, approach combining field based peace mediation, local business incubation and global impact financing. PDI’s model explores concrete ways to support two seemingly distant objectives: peace and profit.

Country/region Topic Period Budget
Conflict & fragility
Employment & economic development
Conflict prevention
Sector not specified
Business support & economic inclusion
01.01.2023 - 31.12.2026
CHF  2’161’000
Background In the last decades violent conflicts around the world have caused high numbers of human casualties, displacement and humanitarian needs. Hard-fought political, human rights and development gains have been stalled if not reversed. Public funds for development, humanitarian and peacebuilding are increasingly constrained due to pressing domestic public health, security, and economic needs. Innovative approaches to leverage private sector’s contribution to these objectives – based on the recognition that sustainable profits require and can support sustainable peace – would be a game changer.
Objectives Support resilient and sustainable peace in fragile and conflict-affected areas by mobilising peace-supporting private investment to complement ongoing public funding of development objectives. 
Target groups
  • Populations in countries affected by fragility and conflict (final beneficiaries) 
  • National stakeholders: authorities, civil society, private sector, etc. in these same countries (indirect beneficiaries)
  • Private sector actors in industries like agriculture and technology who want to utilise their value chains and expertise to help achieve the sustainable development goals (SDG), especially SDG 16
  • Impact Investors seeking to deploy capital to fragile and conflict-affected countries to have a peace-supporting impact 
Medium-term outcomes
  • Contribute to creating new and local peace dialogue tracks between conflict actors and communities, laying a foundation for reconciliation from the bottom-up.
  • Support new market incentives in favour of sustained peace, building viable local and gender-inclusive businesses and connecting them with reputable market actors.
  • Prototype and pilot peace positive investment by de-risking and crowding-in private capital to fragile and conflictaffected markets. 

Expected results:  

  • 40 business ventures in fragile and conflict-affected contexts established, out of which at least 10 are expected to be sustainable at the end of the phase;
  • Their positive impact on peace and inclusive development at the local level is demonstrated and fostered;
  • Most promising businesses are scaled-up by connecting them to market opportunities, and to a network of private investors.

Results from previous phases:   In its first two years, the PDI foundation has produced promising results supporting business ventures in 3 pilot countries (Philippines, Colombia, and Ukraine). This convinced Switzerland to support the initiative and, in doing so, to contribute to the creation of the larger Peace Finance sector. Key results: PDI accompanied the launch of 10 small-scale peace-supporting business ventures (out of which 2 are sustainable, 4 are turning a proft but need support to scale and 4 failed), engaging stakeholders who may have otherwise relapsed to violence and conflict, and creating localised market incentives in favour of peace; PDI demonstrated the potential of economic dialogue in support of peace processes by catalysing engagement when political dialogue was frozen or disrupted; PDI developed a set of principles to be used to measure the impact that businesses have on peace; PDI laid the foundations for the Peace Venture Fund (PVF), a blended finance instrument to invest in peacesupporting commercial ventures in fragile and conflict-affected contexts.

Directorate/federal office responsible SDC
Project partners Contract partner
International or foreign NGO
United Nations Organization (UNO)
  • Other international or foreign NGO North
  • Other UN Organisation
  • Peace Dividend Foundation in Geneva

Coordination with other projects and actors Multilateral Peacebuilding (PBF and World Bank); UN Development System Reform (DCO – RC system); etc.
Budget Current phase Swiss budget CHF    2’161’000 Swiss disbursement to date CHF    650’000 Budget inclusive project partner CHF    8’000’000
Project phases Phase 1 01.01.2023 - 31.12.2026   (Current phase)