Buying from Africa for Africa Link the efficient distribution of aid relief with the growth of local economies
The International Trade Centre ( ITC I ) The technical cooperation agency of UNCTAD and WTO for operational, enterprise oriented aspects of trade development
Aid Agencies Challenges Strategies Limited budgets and growing demand Aid effectiveness questioned Promotion of local participatory approaches Decentralize procurement activities Increase local procurement and supplier portfolio Strengthen logistic functions Reduced costs and efficiency to respond to emergencies
African enterprises Supply capacities Under-utilized production and export capacities for products in demand by aid agencies Specialized manpower and production technologies Proximity to humanitarian operation fields But 50% of aid destined to Africa 10% sourced in Africa (UN procurement)
A gap that can be explained by widespread perceptions Agencies believe 8Africa exports only a few primary commodities 8African producers are unable to supply quality materials at competitive prices Enterprises believe 8The aid procurement market is too complex to access and lacks transparency 8Aid agencies do not know the local supply market and do not want to procure from Africa
and by the absence of mechanisms for Systematic and in-depth local sourcing activities Specific training and capacity building Exchange of information Face-to-face encounters and initiation of negotiations
ITC Buying from Africa for Africa What? Link the efficient distribution of aid relief with the growth of local economies HOW? By increasing local SMEs access to the aid procurement market = Fill the gap Emergency items for resettlement of refugees or IDPs Food and Agricultural products Shelter and Household items Water and Sanitation equipment Transport services Why? To increase African trade To contribute to MDGs To facilitate the delivery of aid to threatened populations
ITC Buying from Africa for Africa Innovative and specialized Unique methodology including advisory missions to visit and select suppliers, round tables, training, buyers/sellers meetings Strong network of local counterparts and experts in aid procurement/logistics Expertise in strengthening enterprise competitiveness In-depth knowledge of aid procurement issues in Africa Confidence of international aid agencies
African enterprises gain revenue and learn to compete internationally Since 2001, 300 African companies from 29 countries Out of 100 paid by Aid Agencies, 60 go directly to pay salaries of rural workers PKL Côte d Ivoire Our regional office in South Africa established a frame agreement with a Zambian manufacturer of blankets worth US$ 120,000. The company already created 30 new jobs UNHCR Trained on aid procurement Met individually with aid procurement professionals Concluded US$ 52 million worth of business and created employment
International Aid Agencies strategies are facilitated Our joint work has been of great benefit to both WVI staff who engaged in the supplier audit as well as to the IAWG at large WVI We do not have the time to travel all around the country and find suppliers. This initiative is an excellent opportunity to increase our knowledge of market availability OXFAM We wish to contribute further in such initiatives, which are a dynamics to WFP procurement activities while integrating the purchasing functions into the local and regional economy WFP Aid agencies : Save time and money in expanding supplier base Get information about markets in countries of operation Disseminate information on procurement policies and practices Network with other agencies
Food for thought to facilitate your engagement with local suppliers Raise awareness and increase transparency: disseminate information to enterprises and to other agencies Initiate local supplier development programmes Formalize meetings between aid agencies and the African business community Develop common registration procedures and technical specifications Develop knowledge of and training on local/regional procurement best practices
ITC Buying from Africa for Africa The way forward Strengthen African enterprises operational efficiencies Facilitate cooperation among enterprises Develop local advisory services and information networks Extend activities to new countries/regions, products/services In close partnership with International Aid Agencies and within the framework of their strategies