Wednesday, 26 May 2010
Man reads business newspaper
FAQs on Aid Funded Business
What is aid-funded business?
The International Community spends around US $120bn each year on aid (development and humanitarian assistance) in the developing world as well as in central and eastern Europe and the Mediterranean. Much of the implementation is contracted out to the private sector, representing significant business opportunities for consultants, works contractors and suppliers of goods.
How do I find out more?
We publish guides to the main development agencies which we can send free to British companies.
How do I get ahead of the competition?
The Aid Funded Business Service was set up to help British companies get ahead in aid-funded business. We also run seminars and business clinics on the main development agencies and how to do business with them. For more details, talk directly to the Aid Funded Business Service or register for alerts for countries and sectors of interest on the UK Trade & Investment website. You will then be notified of upcoming events, seminars and overseas group visits relating to Aid Funded Business.
What type of contracts are tendered?
The various development agencies generally divide their contracts into three main groups:
Consultants or service suppliers
Suppliers of goods
Contractors or works specialists
Aid-funded business offers opportunities to firms of all sizes, ranging from the individual consultant to the medium-sized SME to the major multinational. The benefits can vary in size from US $10,000 (e.g. via a UN agency contract) to tens of millions of dollars (e.g. via a World Bank project).
How do I find business opportunities?
UK Trade & Investment posts market pointers and business opportunities on its internet based database of sales leads. You need to be registered as a UK Company Customer on this site to receive these. The World Bank, Regional Development Banks and the United Nations publish tenders in a fortnightly subscription magazine called Development Business, which is also available on line at . Open tenders for work on the European Commission’s external programme are all published by the SCR on the internet. Contracts worth US $100,000 or less are generally not advertised internationally. The best way of tracking these is by tracking projects or through direct contact with the agency.
How do I find out more about the Aid-Funding Agencies?
The Aid Funded Business Service has published a series of guides (free to British companies) on the business opportunities from the following aid-funding agencies:
General Guide to Winning Aid-Funded Business
The World Bank Group and the Regional Development Banks
The United Nations
The European Commission's external aid arm - 'EuropeAid'
The Regional Development Banks
Will a Development Agency fund my project?
No. Development banks usually initiate their own ideas for projects which they have agreed with the beneficiary countries. They then contract the private sector to implement the projects. It is usually better to look for projects that are already being funded and which meet your expertise, and bid for tenders to implement them.
Can the Department for International Development (DFID) help my firm get business?
No. The remit of the UK government’s Department for International Development is to concentrate on development. UK Trade & Investment is responsible for helping British firms win business in the area of aid-funded business.
Why should I consider aid-funded business?
Aid-funded business is often a good way to develop your presence in a new market. The opportunities are varied, including consultancy, project management, supply of goods and services and support to help SMEs do business in developing countries. Contracts vary in size from a few thousand dollars to tens of millions of dollars. There are real opportunities for SMEs as well as larger companies