Trade opportunities in Africa are often dismissed as being too complicated or risky; however, strong efforts are being made to alter these perceptions. The African Development Bank (AfDB) is one such organization that provides a link to trade opportunities in Africa. AfDB funding has been available for use by U. S. businesses since the U. S. Government joined as a non- regional member in 1983. Originally begun as an international financial institution to promote the economic and social development of its African member countries, the AfDB now lends to creditworthy African member countries and private enterprises on commercial terms.

The AfDB and its projects create business opportunities for consultants, contractors, suppliers, manufacturers and project developers. Since the majority of the Bank's financial resources are directed to public sector projects, business opportunities are most often found in the supply of goods and services to government sponsored projects. The Bank, however also operates a private sector window to finance directly eligible private ventures in regional member countries. Although the U. S. is an active member in the AfDB, and is in fact the largest non- regional shareholder, many businesses are not aware of the benefits that it provides. This obstacle was addressed through the creation of the Commercial Liaison Office of the African Development Bank now headed by Mr. Tapan Banerjee.

For more than 15 years, Tapan Banerjee has been one of the strongest advocates for American businesses. Mr. Banerjee works for the U. S. and Foreign Commercial Service, a division of the U. S. Department of Commerce that helps U. S. companies succeed in their export transactions. The Commercial Service has offices across the U. S. and more than 250 offices worldwide, including ten in Africa. Banerjee has served in Commercial Service offices world wide, including Helsinki, New Delhi, Abu Dhabi and Amsterdam. He currently heads the Commercial Service’s new African Development Bank’s liaison office in Washington D.C. The

Commercial Liaison Office of the African Development Bank will work to support the Presidential Initiative on Africa by helping more U. S. firms pursue bank- financed export opportunities on the continent. Banerjee just returned from Africa, where he visited Nigeria, South Africa, Cote d’Ivoire and Kenya. The following interview was recently conducted between Erin Butler of the Commercial Service and Mr. Banerjee.

Q. What Made You Want to Work in This Program?

A. This position was created in response to President Clinton’s Africa Initiative and the increasing attention that’s being paid to African business. As the first person to lead this Commercial Liaison office, I knew I’d have a real chance to shape the position. I’m here in Washington because that’s where the U. S. companies are. Most of them haven’t made it to Africa. We also will have an officer in Adbijan by next spring. There are great markets in Africa, and we strongly encourage U. S. companies to compete aggressively for Bank- financed projects.

Q. What Are The Opportunities For Small And Mid-Sized Companies In Africa Through The AfDB?

A. There are a lot of opportunities for American SMEs in Africa. The AfDB lends about $2 billion dollars a year for projects— that’s much less than the World Bank or the Asian Development Bank. Accordingly, the projects the AfDB sponsors are much smaller— big companies aren’t always interested in them. But they’re perfect for a smaller firm. The most promising sectors include engineering, consulting, tourism, infrastructure, manufacturing, health services, agricultural technology and environmental services and technology. Bank officials and the regional member countries, want more U. S. companies to bid on these projects. Currently, we see many European companies bidding on these smaller projects but few American. My job is to change that.

Q. U.S. Companies Only Bid On One Percent Of The AfDB’s Procurement Opportunities Last Year. Why?

A. I think there are a lot of misconceptions about Africa. For one, it has something of an image problem. People associate Africa with poverty and health crises— not business. I see a lack of awareness of the opportunities there on the part of U. S. business. Of course, Africa does present some real challenges— poor infrastructure is a major one. But European businesses and large American companies are doing well there. I want to see our smaller businesses have the same chance.

Q. What is the African Development Bank and How Does it Work?

A. The AfDB is one of the five multilateral development banks to which the U. S. belongs. It was founded in 1966, and currently has 77 members— 53 regional member countries and 24 non- RMC. The Bank is headquartered in Adbijan, Ivory Coast, and plans to have regional offices across Africa. Its primary mission is to raise the standard of living, increase food production and eradicate poverty in Africa. In the past, the Bank funded mostly public sector projects. Now, the focus is shifting to the private sector, which opens up opportunities for smaller U. S. businesses.

Q. At What Stage Do Companies Usually Contact You About AfDB Projects?

A. Some companies that call me know very little about Africa or the AfDB. We can provide them counseling and product or service assessment to help them determine whether Africa is a promising market for them. Other companies call wanting information on specific projects or bidding procedures. And still others ask us about financing when they already have a joint venture underway in the region. I encourage anyone who’s interested in the region to contact us.

Q. Can You Describe How Projects are Identified and Awarded?

A. It all begins with a Country Strategic Plan, in which the Bank and each country agree on areas of emphasis, agriculture for example, and identify possible projects. Then each country makes a proposal, including project details and financing, to the Bank. Even at this stage in the game, U. S. consulting companies can win contracts to help put together the proposal.

The Bank and the country negotiate, and once a project is approved, bidding can begin. Through international competitive bidding procedures, companies provide technical details and cost projections. The Commercial Service helps to ensure that U. S. companies enjoy a level playing field and a transparent process. The Bank instructs, and countries usually agree, that priority be given to issues of quality, rather than cost. This is an advantage for U. S. companies, who generally provide products of very high quality, but at a higher cost than their international competitors. Finally, the contract is awarded and work begins.

Q. Can You Share A Success Story With Us?

A. Certainly. We recently helped a New York information technology company win a $200,000 contract in Zambia. They provided both consulting services and software for a sophisticated procurement system. Right now I’m working with a company in Colorado that makes solar- powered irrigation pumps. I have high hopes for them. These are good examples of the sectors that are promising right now in Africa— services and technology. It’s no longer just roads and bridges.

Q. What Advice Would You Give a U.S. Company Hoping to do Business With the AfDB?

A. Set a long- term goal. The opportunities for small and mid- sized companies in Africa are there, and they are significant. But it won’t happen overnight, and the initial leap into the market won’t be easy. Let the Commercial Service and the AfDB help you.

For further information on how to take advantage of AfDB programs, visit the website www.afdb.org or visit the Commercial Service website at www.usatrade.gov/mdbo

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