Procurement for Development Forum

The Procurement for Development Forum is co-convened by the UK Department for International Development and Chatham House. It brings together business leaders to discuss ways that purchasing practices can help development in African countries.

The objectives of the Forum are:

• to raise awareness of the impact of current buying models on developing countries and its potential contribution to reducing rural poverty;
• to encourage experimentation in private-sector procurement systems and other practices that contribute to poverty reduction.

The Forum is initially focusing on agricultural procurement and how supply chains for food products - from cocoa to fresh vegetables - can bring more benefits to the developing world, especially in Africa. Supply chains from Africa to the UK connect small, poor farmers to rich consumers.

Agriculture is central to poverty reduction, and half of Africa's exports are agricultural. UK based buyers have an increasing influence on African production. But current models of procurement by UK-based supermarkets and food companies in Africa do not always work for the poor. Fluctuating prices and even seemingly minor changes in a retailer's purchase orders can have major impacts further down the supply chain. Research shows that weaker economic players, particularly smaller African farmers, can be marginalised along the supply chain.

The Forum is an initiative to develop business models that bring more benefits for the poor in developing countries. The Forum provides a neutral space where retailers, manufacturers and specialist importers can identify ways that their purchasing practices can do more to encourage sustainable development in the developing world.

http://www.chathamhouse.org.uk/research/eedp/current_projects/procurement/