A sound development of the private sector in African, Caribbean, and Pacific (ACP) States is constrained by considerable challenges in terms of regulation, competition, policy environment, and difficult access to finance for micro, small, and medium-sized enterprises (MSME). Private sector policies and regulatory frameworks still need enhancement to achieve inclusive and sustainable economic development. Companies likely to contribute to export development are few and sometimes lack competitiveness. In addition to a high level of informality, there is a missing link in the size of companies and little possibility of upward mobility. Micro and small enterprises have difficulties growing sustainably and transitioning to medium-sized or large enterprises.

The main objective is to contribute to the inclusive and sustainable growth in ACP countries.

The three components of the "Support to Business Friendly and Inclusive National and Regional Policies, and Strengthening Productive Capabilities and Value Chains" ACP-BF action are to support to Business Friendly and Inclusive National and Regional Policies, and Strengthening Productive Capabilities and Value Chains in ACP countries as follows:
1. (macro-level pillar), implemented through the Foreign Investment Advisory Service (FIAS)/World Bank (WB).
2. (meso-level pillar), implemented through the United Nations Industrial Development Organisation (UNIDO).
3. (micro-level pillar), implemented through ITC.

The overall programme aims to deliver analytical, advisory, technical assistance, and capacity-building activities related to investment climate, business, and value chains (VC) support in 18 ACP countries. The micro-level pillar implemented by the ITC focuses on two themes: (i) Promoting inclusive productive and commercial alliances and investment; and (ii) Increasing small farmers’ and processors’ value addition, productivity, and competitiveness.

This programme is designed to achieve two key outcomes: (1) adopting and implementing business-friendly, inclusive, and responsible national policies and legal frameworks, and (2) strengthening productive, processing, promoting, and marketing capabilities and value chains. The implementation follows a 3+1 tiered approach (regional, macro, meso, and micro-level interventions) to leverage value chains to improve firms' ability to compete, grow, and prosper in domestic, regional, and international markets, thus generating inclusive and sustainable jobs and economic growth.