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Barriers addressed
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- Current market are dominated by 5 manufacturers that focus on high-value markets and have limited commercial interest in L.M.I.C.s
- Lack of market transparency for buyers, who do not have visibility on appropriate products and prices, and for sellers, who
do not understand L.M.I.C. demand
- The private sector to date has not effectively served low-income users, and high upfront costs are a major barrier to purchasing
quality hearing aids
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Rationale
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- Big 5 manufacturers are limited by the lack of market visibility and have a low understanding of L.M.I.C. context and potential
volumes
- A well-brokered negotiation may require increasing transparency of volumes across countries, based on countries' existing
procurement budgets, given that current procurement volumes are too low for any one country to have a strong buying power
- Lower cost manufacturers with quality products are unable to leverage economies of scale
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Proposed Activities
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Increase market visibility for manufacturers and improve transparency on product availability and pricing for procurers.
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Explore the potential for volume-based negotiations with quality hearing aid suppliers to ensure the availability of affordable, quality hearing aids that match global product selection guidelines, by identifying
consolidated volumes via financial and non-financial supplier incentives.
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Engage donors to invest in catalytic procurement to incentivise and optimise improved procurement conditions for countries.
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Target Outputs
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- Strategic demand forecast informs the global market on hearing aids
- Improved pricing and availability of quality basic hearing aids for procurement in L.M.I.C.
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Long-term Outcome
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- High-quality hearing aids available at low cost for purchase in L.M.I.C.s
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