Enhanced Subcontracting Arrangements

Over the last 25 years, UNIDO has established some 60 Subcontracting and Partnership Exchanges (SPXs) in more than 30 countries, that have been concentrating their efforts on information and matchmaking of local SMEs with international supply chains.

In line with the present dynamics of International business and the specific challenges in Africa, UNIDO will assign a new role to the SPXs aimed at promoting and understanding the requirements of the main contractors and buyers. The SPX will be based on supplier benchmarking to identify development gaps, which is a starting point for local upgrading requirements. In this context, the UNIDO Investment and Technology Promotion Offices (ITPOs), that are centres of expertise in development-oriented investment, will be mobilized for partnership promotion, technology infusion and financial support. Three SPXs of the new type are now established in Africa with different sources of funding. It is expected that they will be established in more African countries. Funding, envisaged under UNIDO's Industrial Restructuring and Upgrading Programme, is currently under negotiation within the framework of the Economic Partnership Agreements. UNIDO is developing the supplier benchmarking programme in South Africa in a pilot project which will extended to other African countries.