Supplying aid products and services.

Promising trends for developing country enterprises

UN commitment to procure from developing countries and economies in transition

In response to General Assembly resolutions and Executive Board decisions, UN agencies are making serious efforts to diversify sources of supply, particularly from developing countries. The goal is to ensure a broader geographical distribution of procurement.

Decentralization of procurement within international organizations

Many UN and international aid agencies have delegated management of their field operations to regional and local offices, including procurement authority for amounts ranging between US$ 5,000 and US$ 100,000. Some local and/or regional contract committees and specific missions such as peacekeeping, authorize purchases above US$ 100,000. This offers distinct advantages to suppliers based in the region.

Wider choices, lower costs

As the UN and other aid agencies are increasingly discovering, there are many advantages to sourcing goods and services locally: reduced transaction costs; shorter delivery lead times; fewer contingency needs; and lower life-cycle costs.

The proof: Kenyan firms are succeeding.

Kenya's Kaluworks supplies US$ 30 million worth of pots and pans every year to the International Committee of the Red Cross, the International Federation of Red Cross and Red Crescent Societies, the Save the Children Fund, the Office of the United Nations High Commissioner for Refugees and the World Food Programme.

Meanwhile another Kenyan company, Spinners and Spinners, manufactures and exports blankets to aid agencies throughout Africa and beyond to areas such as Kosovo.

Business rewards and socio-economic benefits

Businesses: gaining revenue and learning to compete internationally

By entering the humanitarian aid market, developing country enterprises become familiar with international standards and with the procedures and business practices under which products should be offered and marketed to international aid agencies. Operating in this vast market will also generate additional income and provide enterprises with an internationally recognized customer reference.

Strengthening local economies

When...