Generalizes on the best strategy to enter the market, e.g., visiting the country; importance of relationships to finding a good partner; use of agents.

When developing a market entry strategy always consult the Country Commercial Guide of the specific country or countries of interest. In terms of developing a strategy for engaging with the IDB, both the projects that it finances as well as its own procurement needs for consulting and advisory support, firms are encouraged above all to apply patience and persistence.

The IDB prides itself in being a thought-leader in the region and is, therefore, always seeking to apply the latest technology and know-how in the borrowing member countries. Companies are advised to be very clear about the uniqueness or innovativeness of their product/service offerings. Successful firms match an innovative product/service offering with overarching IDB goals/initiatives for the region.

With the IDB headquartered in Washington D.C., American firms are at a relative advantage in terms of becoming familiar with the Bank and its staff. Bank staff as residents and citizens of the United States, likewise, has a level of familiarity with, and appreciation for, U.S. capabilities and technologies. This natural exposure by virtue of its U.S. location provides U.S. companies should support a market entry strategy that promotes brand awareness and focuses on relationship building.

For many successful firms this process includes scouring the IDB website for:

  • Current and historical data related to projects
  • Country Strategies to understand the framework and context for lending and approaching in country offices to develop.
  • Events for insights into the thinking around IDB communities and opportunities for networking among them


Project Procurement
Primary contractors, and members of consortia of bidding firms, will find that when the IDB lends money to a member country government for a project, the responsibility for the implementation of the project, and for the award and administration of contracts, rests with the borrower. The main difference between IDB funded project and any other public procurement opportunity in the country is that IDB procurement policies are followed and the IDB monitors the procurement process and can intervene if it detects problems.
Competing successfully depends on an ability to do business in the country in which the project will be conducted, and with the borrowing government that runs the competition. Firms with a local presence, whether through a partner or representative, or their own branch office or subsidiary, tend to be able to position themselves more effectively to compete than firms that do not have such a presence. Indeed over 80 percent of all contract awards are made to host nation companies, including local representatives of American and other foreign firms.

Suppliers and subcontractors will also find opportunity related to IDB funded projects. American firms enjoy a strong reputation worldwide as suppliers of first-rate technologies and specialized services. These goods and services often serve as vital components of a project. But they are usually not procured directly. Instead they are acquired through the privates sector by the primary contractors that win the contracts. By marketing to these primary contractors, American manufacturers and service providers can get their offerings into the supply chains that serve IDB funded projects.

Corporate Procurement 
The IDB Group itself runs competitions for consulting and advisory services via the BEO Procurement system. The IDB Invest does not participate in this system and maintains its own portal for procurement of consulting and advisory services.

Private Sector Solutions
Companies and entrepreneurs seeking to establish a new venture or expand an existing one can submit an investment proposal directly to the IDB invest. To be eligible for IDB Invest funding, a project must be located in an IDB Invest member developing country, be in the private sector, be technically sound, have good prospects for being profitable, benefit the local economy, and meet the environmental and social standards of IDB Invest and the host country.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.