Private buyer, international donor or public procurement: three ways to buy, three ways to get paid

Before answering an African project, one question matters more than price: who is buying, and with whose money? Of the 120 projects we track in six countries, 53 belong to a private buyer, 51 to a public contracting authority and 12 are financed by an international donor. Each mode of buying calls for a different approach.

The private buyer

Property developer, hotel group, industrial company, clinic: the purchase is a commercial negotiation. The buyer decides fast, chooses on value for money and ability to deliver, and pays on negotiated terms.

What to secure: solvency. A group backed by identified investors, or whose project has closed its bank financing, is not the same risk as a developer whose site is still waiting for funds. Public signals exist: financing announcements, stalled sites, arrears reported in the press. We record them on every buyer file.

Usual terms: a deposit at order, balance against shipping documents or a documentary credit confirmed by a Moroccan bank. Export credit insurance (SMAEX) covers part of the risk.

The donor-funded project

World Bank, IFC, AFD, Proparco, AfDB, BOAD, EBID, European Union: when a donor finances, it imposes its procurement rules. Tenders are published, criteria are written, payments go through controlled channels.

This is the safest mode of buying for a supplier, and the most demanding: complete files, certifications, references, sometimes the carbon footprint of materials. IFC, for instance, requires a greenhouse-gas inventory above 25,000 tonnes of CO2 a year, and the World Bank is preparing a preference for low-carbon materials produced locally in North and West Africa.

Among our 12 donor-funded projects are housing programmes, hospitals, roads and power networks, adding up to 86 supply opportunities.

Public procurement

Ministries, agencies, national companies: public-procurement law applies. Procedures are long, payments can be too, and this is where improper solicitations are most frequent.

Two rules without exception: bid only through the contracting authority's official procedure, and refuse any intermediary who promises the award. Moroccan law and the buyer country's law punish bribery of public officials; international groups based in Morocco are also bound by their home-country laws.

Public procurement remains attractive for volume, especially in structural materials and equipment, provided it is approached with the right protections: bank payment guarantee, identified external financing, or subcontracting to a solid main contractor.

How we classify projects

Every tracked project carries a mode of buying, established from the published owner and financing, then corrected by hand. Suppliers who receive an opportunity see this classification and the known financing facts. It is not a payment guarantee: it is the information needed to set your own terms.

FAQ

How can I tell whether an African project is financed by an international donor?

Financing announcements by the World Bank, IFC, AFD, AfDB or BOAD are public, and financed tenders name the donor. We record this for every project we track.

What payment terms should I ask a private African buyer for?

A deposit at order and the balance against documents or by documentary credit confirmed by a Moroccan bank are the most common terms. Export credit insurance completes the protection.

Should I answer public tenders in Africa?

Yes for volume, provided you go only through the official procedure, refuse any intermediary promising the award, and secure payment before committing production.