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CBI says recycling a 'big growth sector' for overseas procurement

The Confederation of British Industry (CBI) has called for Government and EU support to help the UK boost its share in emerging markets – with foreign spending on recycling equipment predicted to increase by 250% by 2030.

CBI research indicates that public sector procurement of goods and services in 12 key markets will almost triple to £452bn by 2030. If the UK’s market share remains the same, then only £11bn of that growth will be secured.

The markets identified are: Brazil, China, India, South Korea, Turkey, Saudi Arabia, Indonesia, Mexico, Poland, United Arab Emirates, South Africa and Nigeria.

The CBI believes that public sector organisations in these countries will rapidly increase their purchase of goods and services, driven by the needs of ageing populations and a growing middle class.

Winning public contracts in these countries is often an uphill battle, so firms need a leg up

Katja Hall, CBI chief policy director

China is estimated to lead the growth in public procurement, with its market increasing by 7.4% each year. Indonesia and Turkey are also expected to rapidly increase their spending by 6.2% and 6% respectively.

The CBI research indicates the three fastest growing areas of overseas procurement spend will be: health infrastructure (predicted to increase by 351% by 2030), transport services (254%) and recycling equipment (250%).

Katja Hall, CBI chief policy director, said: “This is a huge opportunity for UK businesses, which have an established track record in many key growth areas like health, transport and recycling. But winning public contracts in these countries is often an uphill battle, so firms need a leg up.

“To boost opportunities for our exporters, we want the UK Government to set up contracting agencies with priority markets, to help them navigate the procurement maze. We also want the EU-US trade talks to prioritise public procurement.

“I want to see ministers championing this important economic sector and to get to a point where CEOs of public services firms are just as readily invited on trade missions as manufacturers.”

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