Aid agencies are buying supplies from Asia and other developing regions following the Asian tsunami in December 2004. ITC’s networks of developing country suppliers are playing a role.

Providing relief supplies is big business. Donors and international aid agencies spend billions of dollars annually. The door to the aid market, traditionally considered complex and inaccessible, has been all but closed to countries in Africa, for example. ITC’s programme, Buying for Africa from Africa, has contributed to changing this. As its success grows, other regions are following suit.

A year ago, Trade Forum reported on an ITC programme to increase procurement from African suppliers by international aid agencies working in Africa (issue 4/2001). Using market research, training and face-to-face meetings between buyers and sellers, the initiative has generated new business for Af

Every day in some far-flung corner of the world affected by conflict or disaster or benefiting from development assistance programmes, international aid agencies distribute supplies including food, shelter and medicines. The images of these efforts have become well known. Less known is the fact that trade in humanitarian aid and development assistance is big business, estimated to be worth some US$50 billion a year worldwide. Today, the supply and distribution of aid products is dominated by suppliers in industrialized countries. However, due to changing trends and the opening or “untying” of aid procurement, this unique market offers huge potential for developing country enterprises to become new suppliers to aid agencies.

Throughout the world, international aid agencies implement development or relief assistance programmes aimed at fighting disease, reducing poverty, fostering economic and social development, promoting respect for human rights and protecting the environment. In doing so, they procure an estimated US$50 billion worth of goods and services from companies worldwide. Today, changing procurement trends by these agencies are opening up more opportunities for developing country enterprises.

Increasing the regional and international trade potential of developing countries is vital for their future growth and prosperity. But often a country’s enterprises do not know how to access markets beyond their borders.

In 2000, international aid agencies procured an estimated US$50 billion worth of goods and services for worldwide development and relief projects. The United Nations (UN) system accounted for US$3.7 billion of this total. Constantly growing and diversifying, the portfolio of goods, equipment and commodities procured by international aid agencies ranges from grains, cereals and agricultural equipment, to water supply and sanitation, shelter and domestic items, medical and transport equipment, office equipment and supplies and fuels.

Supplier listings/online tenders (some with charges)

• United Nations Common Supply Database
• AlertNet
• ReliefWeb
• DevBusiness
• AidMatrix
• Relief Guide
• Official Development Assistance – Japan
• Tenders on the Web
• Business Information Publications
• Tenders Direct
• Aid-Funded Business International
• Mbendi

International non-governmental organizations (NGOs) are key players in the procurement of humanitarian aid goods and services. Each year they purchase hundreds of millions of dollars worth of items from suppliers around the world. One example is the International Red Cross and Red Crescent Movement which works toward making the purchase of first aid materials more cost effective and quality-assured.