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  • Development of a SADC Simplified Trade Regime
  • Development of a SADC Simplified Trade Regime

    The Southern African Development Community (SADC), consisting of fifteen Member States, has significant economic potential. However, intra-regional trade continues to be limited and more costly than in many other regions of the continent and the world. Lack of harmonized trade policies and burdensome customs procedures are one important reason.

    As part of the German Development Cooperation programme “Cooperation for the Enhancement of SADC Regional Economic Integration (CESARE)”, GIZ supports the SADC Secretariat and other SADC Structures in their efforts to further enhance regional economic integration. This includes support in the area of trade facilitation, compliance monitoring and evaluation processes, private sector complaint resolution mechanisms and SADC trade liberalisation negotiations.

    Studies and experiences from other parts of the world document that the simplification and streamlining of documentation requirements and
    formalities for importation/exportation can significantly reduce transaction costs associated with formal trade. Such measures are particularly important for small scale cross border traders who often do not have enough financial resources or human capacity to deal with complex administrative requirements. Moreover, for small or low value consignments often channeled by such traders, the costs of complying with complex requirements and formalities can be disproportionate relative to the transaction value.

    Article VIII of the World Trade Organization’s GATT Agreement and provisions of the Revised Kyoto Convention for the Simplification and
    Harmonization of Customs Procedures suggest the development and implementation of simplified trade procedures for eligible small scale traders to overcome these challenges. SADC-neighbouring regions, first and foremost COMESA, have already implemented such a regime and the benefits have been well documented.

    It is against this background that SADC Ministers mandated the SADC Secretariat to develop a Simplified Trade Regime (STR) for intra-SADC
    trade in accordance with the WTO Agreement and the Kyoto Convention. The draft proposal, informed by a thorough best-practice and cost/benefit analysis, will then be considered by SADC Structures for final approval by SADC Ministers.

    GIZ is seeking (a firm of) consultants to develop a WTO compatible proposal for a SADC STR with different scenarios/options to be considered by SADC Member States, following a thorough assessment of options and best practices, and of stakeholders’ needs and preferences in the SADC region. In addition, a background document that outlines the expected impact and costs/benefits of the STR to be used for political communication purposes is to be developed. Details of the assignment can be found in the attached Terms of Reference.

    Submission deadline

    Should you be interested in implementing the tasks according to the Specifications (Annex 1), please submit your bid (in English) at GIZ office by Tuesday 28rd February 2017, 16:00 hrs. Please send your bid by courier or hand deliver to:

    Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
    GIZ Office Gaborone
    1st Floor, South Wing, Morula House
    Plot 54358, New CBD

    Labelling of offer

    Your bid, comprising the technical offer and the price offer, must be clearly marked as such and submitted in a package containing two envelopes. The price offer must always be separate from the technical offer and placed in a separate envelope. Kindly send original and 3 copies of technical and financial proposals.

    The envelope containing the price offer using the financial offer form (Annex 3) with the bidder’s company name on the right corner must be sealed and be labelled as follows:

    Price offer for:

    CESARE - Development of a SADC Simplified Trade Regime
    Reference number 83251120
    – to be opened by GIZ procurement unit only –

    The envelope containing the technical offer with the bidder’s company name on the right corner must be sealed and be labelled as follows:

    Technical offer for: Company name

    CESARE - Development of a SADC Simplified Trade Regime
    Reference number 83251120
    – to be opened by GIZ evaluation team

    Interested parties are requested to submit a technical offer based on the criteria of the assessment grid (Annex 4) and CVs of potential candidates for the team. The technical offer should also give insight to the work methodology (covering objective, strategy, mode of implementation, work/time schedule).

    The outer package with the bidder’s company name on the right corner must be labelled as:

    Bidding documents for:

    CESARE - Development of a SADC Simplified Trade Regime
    Reference number 83251120

    Alternative offers

    No alternative offers are permitted.

    Price offer

    The price offer must be submitted in accordance with the attached format for the price offer and General Terms and Conditions. Personnel costs should be shown per expert assigned for the measure. Travel costs and all other costs have to be shown separately. All communication related costs, stationary and printing costs for reports have to be included in the calculation. Please submit your offer in the currency of your country; during the financial evaluation the amounts will be converted using the exchange rate of the day from the converter InforEuro:


    Procedural questions

    Please address any commercial, technical and procedural questions at an early stage. Questions will be answered if they are received 5 days before the closing date. Questions have to be raised in writing, by fax or email only to:

    Ms Dimpho Keitseng
    GIZ Botswana, Procurement Office
    fax +267-3959750 or
    email: Dimpho.keitseng@giz.de

    Non-compliance may result in your bid not being considered.

    Evaluation of Offer

    After the final technical evaluation, only the price offers of bids with 500 points and above will be opened and evaluated. Technical offers below 500 points will be considered as technically not acceptable. The weightings are as below for Technical (T) and Financial (F);

    T: 70%, and F: 30%. The following formula will be used:

    technical evaluation of bid x 70       most economical bid x 30

    technical evaluation of best bid       price of bid

    The contract will be awarded to the bidder with the highest score (Technical plus Financial weighing), and in case of achieving the same score, a priority is given to the bidder who submitted the bid earlier. Contractual negotiations are generally commenced with the bidder achieving the highest score.

    Should these negotiations not be successful, the second highest scorer on the list shall be invited to commence negotiations.

    Date of decision to award contract

    For procedural reasons, no information on the status of the evaluation will be given pending the decision on contract award. We would therefore ask you to refrain from making enquiries about this. Only the winning bidder will be informed.

    Acceptance period and Commencement of work

    Work is scheduled to start in March 2017. But please note that you are bound by your bid for 90 days.

    GIZ also reserves the right to cancel the bid entirely.

    Yours truly,

    Annexes (in attached documents)

    1. Terms of Reference
    2. GIZ General Terms of contract
    3. Budget allocation Form
    4. Technical assessment grid
    5. General terms and conditions (local)