Aid Funded Business

Aid Funded Business offers real opportunities for UK companies

Why do business with aid organisations?

Aid Funded Business is about win-win. British companies win the business, the aid agency funds a sound project and the developing country gains a sustainable asset.

Multilateral agencies (such as the UN, World Bank etc) spend $60 billion every year on everything from tents to telecommunications. But you need to know - and be known by - the right people, in the right places, to break into this market. UK Trade & Investment's Aid Funded Business Team can help you through this process.

This is a potentially huge market for British companies and the UK currently gains between 4-17% of multilateral aid-funded business. The most sought after expertise is in the healthcare, construction, consultancy, ICT, environmental, and transport sectors.

Much of the implementation of these aid funded projects is contracted out to the private sector, representing significant business opportunities for consultants, works contractors and suppliers of goods and services.

Key benefits of trade with aid/development organisations

Some of the key benefits of doing business with Multilateral Donors are:

• Variety of opportunity. Other than giftware and jewellery, there seems to be few items the agencies do not require at one time or another.

• Orders always backed by funds (US$). Aid Agencies cannot place orders unless funds are available. As long as contract terms are met, payment is rarely a problem.

• English is the working language.

• Order size is suitable for Small to Medium Enterprise (SMEs). Supply contracts can start at as little as $10,000, rising to tens of millions of dollars for major infrastructure projects. The average supply contract with the UN agencies is $20,000. All of the agencies have good websites that allow you to download information and register your interest in doing business with them.

It is worth noting that the Donor Agencies do not fund projects designed by private companies. All projects are designed jointly by the Donor and the Government of the beneficiary country. As a private company you would bid to carry out the project as part of a international competitive tendering process.

Getting started

Read more on the institutions operating in Aid Funded Business, the European Commission, the World Bank Group and Regional Development Banks and the United Nations Agencies, in the fact box above.

Finally, consider this: Is your firm ready for Aid-Funded Business? The opportunities are great but to be able to profit from them, you must have

- An international track record and a commitment to international growth

- Management capability

- Competitive advantage

- Marketing skills

- Good Financial standing, and normally a minimum of 3 years audited accounts

- Market knowledge

- Operational capabilities – skills in delivering products or services and working in cross- border partnerships

Please read this guidance to assess your company’s readiness to target Aid-Funded Business.

If you are a UK company and are ready for the Aid-Funded market, as described above, and would like to receive Aid-Funded Business updates for events and workshops please complete this enquiry form and return to the email below

Cheryl Boxall

Tel: +44 (0)845 603 0084

Email: info@afbs.org.uk