Home Law Business in Africa and the African Development Bank

Business in Africa and the African Development Bank

0
138

The African Development Bank provides a large volume of financing to African countries each year. In turn, recipient countries use these funds to procure goods, works and services for the implementation of projects. The project executing agency is responsible for procurement. Contracts with contractors, suppliers and consultants are signed by the Borrower and the Bank is not a party to the contracts. However, as part of its fiduciary responsibility, the Bank must ensure compliance with agreed procurement procedures and the fundamental principles of efficiency, fairness, transparency and equal opportunity.

Useful link: Africa Employer of Record

The old version of the DTAO (below) is applicable to all projects in which reference is made to the revised Rules and Procedures (May 2008 as amended in July 2012) under the Loan Agreements or Grant Protocols.

The African Development Bank requires its Borrowers to submit timely notice of bidding and information on consulting opportunities. In addition to this website, opportunities are also published in UN Development Business (link is external) (UNDB). The UNDB also publishes information on business opportunities offered by other multilateral development banks and development agencies. The Development Business is available either in print or by online subscription (link is external).  More information is available on the UNDB website (link is external).

The various notices published on the website and the UNDB are as follows:

  • General Procurement Notice (GPN)
  • Upon approval of a project, a General Procurement Notice is published on the UNDB online and on this website. The General Procurement Notice contains information about the project, including the procurement requirements for the project.
  • Specific Procurement Notice (SPN)
  • A SPN follows a general procurement notice prepared by the Borrower (in consultation with the Bank), and provides detailed information on a particular procurement under an internationally competitive project. The notice is simultaneously published on the Bank’s website, in the UNDB and in a newspaper in the borrowing country.
  • Notice of Expression of Interest (EOI)
  • These are invitations addressed to consultants requesting them to express their interest in a given consultancy service. Based on the capabilities and skills of interested consultants, the Borrower issues requests for proposals to a shortlist of consultants.

Project Financial Management

Financial management is a process, the main objective of which is to maximize the financial and economic benefits of an investment. It ensures accountability and efficiency in the management of public resources by providing:

  • the essential information needed by those responsible for managing, implementing, and supervising projects, including government agencies responsible for oversight and financial institutions;
  • assurance required by the borrowing country, creditors, and the donor community that funds are being used effectively
  • Preventive measures against fraud and corruption, as it provides for the execution of controls required to detect unusual occurrences early.

Objectives of the Bank’s financial management activities:

  • Fiduciary, to provide reasonable assurance on the use of the Bank’s resources in accordance with the requirements of the Agreement Establishing the African Development Bank and the Agreement Establishing the African Development Fund, which state that “the Bank shall make arrangements to ensure that the proceeds of a loan made or guaranteed by it are used only for the purpose for which they are intended, giving due weight to considerations of economy and efficiency.”
  • Development, to help countries improve their public financial management (PFM) performance as sound public financial management is essential to achieving government policy objectives, including poverty reduction and the fight against corruption, by contributing to efficiency, control, transparency and accountability.

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Enter Captcha Here : *

Reload Image