Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 11/15/2018

PROJECT PROCUREMENT

When the AfDB Group finances a project the responsibility for its implementation (e.g., award and administration of contracts and facilitation of payments), rests with the borrower. Borrowers may require bidders to state the portion of the proposal representing local costs. Payment shall be made in the currency in which payment has been requested by the bidder. Projects are denominated in both UAC and local currency. Forms of payment, including bank transfer, letter of credit and certified check, and the timing of payment are stipulated in the contract between the contractor and the borrowing government. Subcontractors and suppliers are paid by the primary contractor, which is subject to methods and terms agreed upon by the parties involved. To learn about conditions in countries of interest, see the “Methods of Payment” section of each country’s Country Commercial Guide. U.S. exporters may wish to consider using the export credit insurance programs offered by the Export-Import Bank of the United States, the official export credit agency of the United States which assists in financing the export of U.S. goods and services to international markets. For further inquiries regarding payment in relation to AfDB Group funded projects, consult the AfDB’s Procurement Policy for Goods, Works, and Services.

CORPORATE PROCUREMENT

The AfDB Group itself procures consulting and advisory services. These procurements are run through the Vendor Kiosk Portal. Projects and payments are denominated in both UAC and local currency. Payments are made directly to the consultant from the AfDB Group. For more information on payments from the AfDB Group, consult AfDB Rules for Corporate Procurement Activities.

PRIVATE SECTOR SOLUTIONS

Private Sector Department activities include Non-Sovereign Guaranteed lending activities, studies, initiatives, and new programs. The Private Sector Department denominates its projects in UAC, and local currency. Payments to U.S. firms will reflect the currency stipulated in the contractual agreement. For more information on payments from the Private Sector Department, consults the AfDB’s Private Sector Development Policy website.

U.S. GOVERNMENT TRADE FINANCING INSTRUMENTS

Several U.S. Government entities offer trade financing instruments to help U.S. exporters engage in challenging overseas markets with increased confidence. The Export-Import Bank of the United States (EXIM) offers short, medium, and long-term export credit, finance and insurance products to American exporters. The Overseas Private Investment Corporation (OPIC) offers loans, guarantees, and political risk insurance to help mobilize U.S. capital overseas. U.S. firms should familiarize themselves with these programs, and which are available in each country of interest.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.