Ethiopia Industrial Parks & B2B Linkages (2016-2017)
ETG, with Precise Consult International, designed and is implementing a B2B linkages matching grants program to support Ethiopian enterprises to increase sales to foreign manufacturing firms in targeted industrial parks. This project is a component of the $250 million Competitiveness and Job Creation Project loan by the World Bank to the Government of Ethiopia. In one of the first B2B linkage projects in Africa, ETG developed a “buyer-led” approach to support local supplier companies to meet sales opportunity targets by developing transaction-specific strategies to address binding constraints and improve production competencies to meet rigorous local procurement standards of foreign buyer companies. Based upon our experience in developing and implementing buyer-supplier linkage programs worldwide, ETG focused on both large buyers (mostly in apparel and footwear) and local suppliers, starting with buyer-specific needs and establishing key buyer firms as clients, and then identifying potential local supplier firms willing to co-invest in upgrading their capacities. The project targeted 15 companies during the first year, with an average company upgrading cost of $400,000 per company and expected increase in sales to buyer firms exceeding $2 million per company, and leading to the generation of 225 jobs overall. This project served as a prototype for the development of B2B linkage and enterprise competitiveness programs in the many industrial parks being launched throughout Ethiopia. Funding from the Government of Ethiopia and the World Bank. 2016-17.