A catalyst for growth: the story of Ecogranja La Francia

Open contracting helped Natalia to navigate the public procurement market in Palmira, Colombia, allowing her to grow her family business while supplying vulnerable residents with fresh, local produce.

Natalia del Castillo had big ambitions for her small business in Colombia. She cultivated local produce following sustainable methods and ethical animal welfare practices. But she had never dealt with public institutions. Their procurement processes were notoriously difficult to navigate.

Then the city of Palmira changed its approach. The government advertised tender opportunities openly. It organized agricultural fairs where local farmers could meet public buyers, and connected them with logistics operators.

Natalia bid on tenders to supply eggs to welfare homes. Her company, Ecogranja La Francia, secured five separate contracts, becoming one of the first small-scale producers to enter Palmira’s public procurement market.

Demand from the contracts put Natalia’s business on the map and her revenue grew. It spurred her to launch a new product line tailored for public sector buyers. In Palmira, vulnerable residents had a reliable supply of fresh, local eggs – a staple ingredient.

Dozens of small business owners like Natalia have benefited from Palmira’s efforts to use public spending to encourage local economic development. The city was the first in Colombia to implement new laws promoting local food sourcing. It adopted an open contracting strategy to empower rural entrepreneurs and producers who had previously been locked out of the procurement market due to armed conflict, the pandemic, and other obstacles.

Now other Colombian cities are studying Palmira’s playbook, imagining what their own local and women-run suppliers might achieve with the right support.

Read more about the reforms in Palmira.