Success Stories
ABC4 provided a forum to present new business opportunities, discuss past and present contracts, and clarify misconceptions held by both buyers and suppliers. Fourteen different buyer entities attended, as did a record 191 companies registered by PDM-A Helmand. For the first time two women business owners attended, both of whom expressed their gratitude for the opportunity to interact with the international community as well as other businesses. A local businessman stated “the event provided a platform for all participants to share opportunities and [the] way forward for business development in Helmand province”.
PDT was put in touch with Sky Walk Consultancy & Services (SCS) at a business conference for Kandahari businesses in the spring of 2010. They were subsequently verified and registered, and also spoke to PDT about their business development strategy and discussed different techniques and strategies to win contracts. PDT also connected them with an international consulting company, funded by CIDA, who were looking for local companies that could execute capacity development projects. SCS went on to win four contracts with the company to implement vocational training in small villages in Kandahar province. SCS has re-invested the profits from its contracts into the business, and has opened branch offices in Helmand, Uruzgan and Zabul. SCS also plans to expand its business in the north and west of Afghanistan. It has also moved its headquarters from Kandahar to Kabul in order to attract experienced staff that can help with business development, and to better liaise with buyers with country-wide contracting opportunities.
PDT’s office in Mazar-e-Sharif is well known for its willingness to support local vendors and regional buyers however possible; often organizing site visits for buyers, providing hands-on assistance for vendor registration, and partnering with other organizations to better promote local entrepreneurs. In the past few months alone, the office’s hard work has translated to over $2 million worth of contract facilitations. Due to these facilitations, winning vendors were have now fostered relationships with new buyers, have been able to expand their operations geographically, and have bolstered their past performance for the next time they submit bids. This was made easier thanks to the dedication of PDT’s staff in the Mazar office. One potential buyer even noted “[PDT staff were] an incredible help to us. Not sure if we could have accomplished nearly as much without [them]. [They are] certainly an important asset to PDT and to Afghan First efforts up north”.
Although factors like power cuts, ongoing military operations and threats against anyone dealing with the international community make for a difficult operating environment, throughout the fall of 2010 PDT has been able to help businesses tackle another major impediment to doing business in Kandahar – accessing international buyers. Face-to-face interaction is an important part of the contracting process, as buyers are able to get a sense of the company’s capabilities and the vendor is able to clarify any concerns or ask questions. To assist buyers and vendors in making these important connections, PDT organized a series of vendor outreach events on the Provincial Reconstruction Team (PRT) compound, which was accessible to buyers and Afghan companies. Local vendors said that the event was “a golden chance” for them as they previously could not approach the buyers located on KAF. Not only were they able to meet potential buyers at the outreach events, they were able to learn about upcoming contracting opportunities, walking away with the solicitations in their hands. Many of the companies went on to bid and win the contracts distributed at the vendor outreach sessions. The contract values of the solicitations won ranged from a couple hundred dollars to multi-million dollar contracts.
Astoria Global Road and Construction Company (AGRCC) is a Nangarhari construction company with experience and technical expertise. However, they were only able to win sub-contracts from other companies that had secured projects from the Eastern region’s principle buyers. After registering with PDT they attended a joint training session held by PDT staff and RCC-Fenty, where they learned about the necessary requirements to complete a valid bid and were able to ask questions to contracting officers. They also participated in a vendor outreach event where they networked with contracting officers from across the Eastern region. As a result of the training and access to business opportunities provided by PDT, AGRCC has won over 20 contracts from four separate buyers. They maintain that none of these contracts would have been won without PDT and the training, tender distribution and businesses matchmaking opportunities that were provided to them.
Afghan Business Essential (ABE) is a business support company that provides Human Resources (HR), logistics and management services to national and international organizations operating in Afghanistan. Within their first year of business, they were faced with a challenge that many emerging Afghan businesses face: it was very difficult for this Afghan company to connect with international buyers.
ABE had been verified and registered with PDM-A and was contacted for a business matchmaking request. Previously unaware of the services PDM-A had to offer, ABE soon realized the potential to finally connect with the international community. ABE has since taken advantage of PDM-A’s tender distribution services and training sessions, and has been included in several business matchmaking reports. As a result, ABE has secured contracts with numerous buyers and hired an additional 20 staff. This led to the creation of a second company, Afghan Barez HR Services Co., which specializes in HR services.
Due to the resounding success of the first event, in January 2010, PDM-A co-sponsored the second Helmand Afghan Business Conference. The aim of the conference was to show buyers the capabilities of Afghan suppliers operating in Helmand and to give Afghan suppliers access to key buyers and increased marketing opportunities. The Helmand team created a “Good Business Guide” that was distributed on a CD in the Pashto language to all suppliers, outlining information on the procurement policies of each buyer in attendance and basic information about PDM-A. 132 Helmand-based, Afghan-owned companies and seven buyers attended the event. Businessmen in attendance were also able to register with PDM-A on the day if they had not already done so and express interest in the buyers’ displayed immediate procurement requirements.
On June 30th at the Intercontinental Hotel, Peace Dividend Trust partnered with USAID in support of the Afghan First Outreach Event. USAID asked to meet Afghan-owned companies from across the country in order to become familiar with USAID and its available contracting opportunities. Eight USAID offices gave short presentations, followed by a Q&A session with the businesses present. This aspect made the event different from other vendor events because local companies seldom have the chance to discuss contracts and contracting opportunities with buyers, particularly companies based outside of Kabul.
About 125 Afghan-owned businesses operating in different sectors and regions attended the event. The event was a success not only due to the networking opportunities and chances to meet USAID representatives, but for the opportunity it presented for businesses to let USAID know their ideas and suggestions as to how Afghan companies and USAID could better do business. USAID was also helpful in instructing companies how they can improve their chances of doing businesses.
In acknowledgment of PDM-A’s unique link to the Afghan marketplace, the United Nations World Food Programme (WFP) requested that PDM-A partner in an innovative cash voucher pilot programme. Designed to mitigate the impact of high food prices, the programme benefited food insecure populations by enabling them to prioritize their food needs whilst Afghan vendors gained from the commercial advantages of increased trade. The WFP targeted 10,000 vulnerable families (about 60,000 individuals) in district 12 of Kabul City. In total, an estimated US$1.8 million worth of vouchers are expected to be redeemed in participating shops in the district. PDM-A’s support activities included: identifying potential shop owner candidates, carrying out a baseline survey with shop keepers to ensure they met WFP’s basic requirements and helping train the selected vendors on how to participate in the programme.
In April, PDM-A attended a vendor day for Herati businesses, sponsored by the Herat Regional Contracting Command (RCC). Only Herati companies who had not done business with the RRC before were invited in order to diversify the supplier base they are working with. Buyers emphasized their desire to award contracts to Herati companies, and not Kabuli or non-Herati companies. One buyer even commented “Kabul has enough of a cut already; it’s time to focus on the West.” This approach highlighted a regional first approach to procurement award. RCC-Herat has spent $53 million in the past 6 months, 92% of which went to companies that were PDT-A registered. It is hoped that the event will increase the number of awards going to Herati suppliers and lead to increased demand for PDT-A services in the region.
- and according PDM-A holidays policy, all the PDT Afghanistan offices will remain closed on Sunday 5th February 2012, — 2 days 10 hours ago
- Saturday 4th February 2012 coincides to Prophet Mohammad’s (PBUH) date of birth, — 2 days 10 hours ago
- US Donates $800m to Afghanistan: http://t.co/e5IP2jza via @AddThis — 2 days 10 hours ago
Afghan First
Buy Local. Build Afghanistan.
PDT encourages the international community to buy AFGHAN FIRST before importing goods and services to carry out project work. This approach doubles the impact of development dollars by creating jobs, generating tax revenue and building business - all of which contribute to peace and stability in Afghanistan.
Tender Directory
New Business Opportunities
Suppliers - check out our tender directory! Here you will find invitations to tender and other documents that can help your company access new business opportunities in the Afghan marketplace. If you would like to receive tender alerts by SMS or email, please contact us at: tenders@pdtglobal.org.
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Partnerships are Key
PDT is eager to help exchange best practices, raise awareness about the importance of buying local and to help facilitate the procurement of goods and services in Afghanistan. If you are interested in partnering with PDT, please contact us at: afghanistan@pdtglobal.org.
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