You've got a great solution and want to install it in
East Africa. Where to turn? You have two options: public sector and
private sector.
The public sector:
·
"The World Bank" – Over $100B is distributed by bi-and
multilateral aid agencies every year. Some examples of such agencies with
which Israelis companies can work are the World Bank and the Inter American
Development Bank. Every Western country has a bilateral agency as well.
These agencies are tough to crack, and for a small company, it is very
difficult to get in the door.
·
Government contracts - You could skip the Western agencies
entirely and go directly to an East African government for a contract.
This requires significant time on the ground and a very deep
understanding of the political and bureaucratic challenges. It's good to
have a "matcher" on your team.
The private sector:
· Aid consultancies - These large companies win the lion's share
of aid contracts from multilateral and bilateral aid agencies. Instead of
winning a contract directly, you become one of their sub-contractors. If
you are a consultant, this is a great way to go. Try a website like DEVEX to
get started. However, if you have a product, they may not be the best path to
take.
·
Multinational corporations (MNCs) - As these markets grow,
companies like GE, TATA and IBM are entering with force. Just as Israeli
high-tech firms sell to and are sometimes acquired by MNCs, the same is
beginning to happen for the developing market, focused products as well.
·
A local partner - Set up a JV with a local partner. You'll want
to find someone you can trust. Two things to look for are existing
contracts with Western companies or investment from Impact Investors.
I am happy to have helped a number of Israeli firms
expand through private sector methods by finding the right MNC, the right local
partners or the right impact investor.
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