Policy brief

Subsidies and Market Systems Development (MSD)

DFAT’s Operational Framework for Private Sector Engagement

Published by
MDF: Market Development Facility

This knowledge exchange brief focuses on issues of market distortion and subsidies to market actors relevant to the Australian Department of Foreign Affairs and Trade (DFAT) Operational Framework for Private Sector Engagement.

It examines the way that MSD programmes such as the Market Development Facility (MDF) utilise subsidies; particularly how levels of additionality and concessionality are determined.

The Operational Framework (soon to be released) will provide practical tools and approaches that aim to amplify the impact of Australia’s aid programme through partnership with the private sector.