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ADF-11 Procurement Rules of Origin (Discussion Paper)
Article 15(4) of the Agreement Establishing the African Development Fund (the “Fund Agreement”) restricts procurement in Fund operations to goods, works and services from member countries of the African Development Bank (the “Bank”), State participants of the African Development Fund (the “Fund”) or non-member States providing resources to the Fund. This requirement, colloquially referred to as the “rule of origin”, has resulted in substantial increases in the transaction and procurement costs in Fund operations, thus reducing the competitiveness of Fund products and their development effectiveness. It has also prevented the Fund from participating in new multi-donor products such as SWAPs and multi-donor trust funds.