Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 11/15/2018

Project Procurement
When the AfDB finances a project, all responsibility for its implementation, and for the award and administration of related contracts, rests with the borrower. Competing successfully depends on the ability to do business in the country in which the project will be implemented, and with the borrowing government that runs the competition. The AfDB operates under its standard Procurement Procedure, which highlights important information for borrowers, as well as interested businesses. Bidders on AfDB Group funded projects must be nationals of one of the 81 member countries. Interested bidders may be able to access important resources and documents via the AfDB’s Resources for Businesses Guide.

In addition, The AfDB hosts a service for consultants, known as the Database on Consultants (DACON). It is a database of individual consultants and consulting firms. Interested parties may register themselves as an individual consultant, or register a consulting firm. The AfDB utilizes this resource to judge the acceptability of consultants proposed by borrowers if applicable. Registration with E-Consultant does not constitute pre-selection of consultants however. For project procurement, E-Consultant will only be used if the borrower’s Expression of Interest (EOI) did not produce any adequate candidates. For more information, consult the AfDB Acquisition of Consultancy Services.

Knowledge of the local language, culture, business practices, legal system, and other local conditions is essential. Tariffs, quotas, restricted or prohibited imports, temporary entry of goods, standards, testing and certification requirements, labeling requirements, pricing, and other elements of doing business vary country by country. Firms with a local presence, whether through a partner or representative, or their own branch office or subsidiary, will be able to position themselves more effectively to compete than firms operating remotely. The AfDB’s culture, and the continent in which it works, heavily relies upon a familiarity with the environment. Firms that conduct business at “an arm’s length” will find less success than those who operate with a local presence.
of a procurement notice often find themselves at a competitive disadvantage. Firms with the patience and persistence to engage over time enhance their competitiveness by understanding stakeholder interests, providing input, and preparing bids based on a full historical understanding of the origins, context and development of the project.
On January 1, 2016, the AfDB implemented a new Procurement Policy, which now includes a “value for money” model. These reforms give borrowers the flexibility to select vendors based on factors other than cost. This should favor firms capable of demonstrating value across the entire project life cycle. Projects in the pipeline prior to January 1, 2016 will continue under the previous rules regime which focuses on lowest cost.

Corporate Procurement
The AfDB Group itself runs competitions for consulting and advisory services. These competitions are run through the AfDB Vendor Kiosk. This kiosk is dedicated to vendors interested in supplying goods, works, and services for the AfDB’s internal requirements, which excludes project related procurement and consultancy run through DACON. Prospective and current procurements are broadcasted by the AfDB via its Corporate Procurement Portal. Further information for corporate procurement documents can be found under the Forms & Documents Section.

As with Project Procurement, firms that begin focusing on a project once it appears on the portal will find themselves at a competitive disadvantage. Firms that engage over time enhance their competitiveness by understanding stakeholder interests, providing input, and preparing bids based on a full historical understanding of the origins, context and development of the project.

Private Sector Solutions
The Private Sector Department plans, organizes and carries out the activities related to private sector project identification, preparation, appraisal, implementation and portfolio management. The Private Sector Department is comprised of four specialized divisions: The Infrastructure Finance Division, The Industries and Services Division, The Operations Support Division, and The Portfolio Management Division.

to engage in a private sector project with the AfDB. If deemed eligible, the bank will initiate an application review, which is comprised of a feasibility study, a business plan, and an environmental & social impact assessment. All proposals should be submitted to the Director of the Private Sector Department. For more information regarding private sector proposals, consult the AfDB’s guide on Private Sector Operations.

Private Sector Department funded projects are private sector initiatives and are not subject to the rules and processes that govern project procurement. Selection of partners, and decisions on engaging a private sector endeavor are based primarily on the Private Sector Department’s assessment of how the proposal complies with the AfDB’s Private Sector Development Policy. Vendor selection will be based on whether or not the bidder is eligible according to the Eligibility Criteria, as well as how the proposal supports the AfDB’s Strategic Priorities. Projects that serve one of the AfDB’s High Five Goals are strongly preferred.

 

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