Introduction

What is the objective and purpose of preferential public procurement?

Public procurement is the process by which government and public entities purchase goods, services, capital and technologies for their own or public use. Government is the largest single buyer of goods and services in most economies, with expenditures by governments often amounting to 20% to 30% of GDP.

This policy note describes options for public procurement preferences given to companies with inclusive business practices, thereby providing an incentive for companies to include the BoP in their value chains.  This procurement preference could be part of a larger government-wide framework or a stand-alone initiative to support specific products or companies.

Read the full policy case study (pdf).