When Should International Organisations Use Pre-Award Third-Party Due Diligence in Africa?

Pre-award third-party due diligence provides stronger assurance by combining documentary review with local verification before funding decisions are made.

The preferred implementing partner has been identified. The technical evaluation is complete, the proposal is strong, the budget has been agreed and the award recommendation is ready.

Yet one important question remains before the award is approved.

Do we have sufficient confidence to commit the funding?

For many Grants Managers, Procurement Managers and DFI Investment Officers, this is the point at which pre-award third-party due diligence becomes valuable.

Not because concerns have been identified, but because uncertainty remains.

Funding decisions based solely on documentary review or self-reported information may leave fiduciary, operational and reputational risks insufficiently tested before resources are committed.

Independent Due Diligence Answers a Different Question

Technical evaluation determines whether a proposal satisfies the selection criteria, while pre-award due diligence establishes institutional capability.

Pre-award third-party due diligence asks a different question:

Does the available evidence provide sufficient confidence to support the award decision?

That question becomes increasingly important when funding a first-time implementing partner, supporting a strategically significant investment, managing a multi-country programme, operating with limited in-country presence or entering an unfamiliar operating environment.

In each case, the decision is the same:

Is additional independent assurance justified before funding is committed?

This is where independent third-party due diligence can provide meaningful value.

Why Pre-Award Third-Party Due Diligence Matters Across African Markets

Across many African markets, evidence relevant to an implementing partner is rarely held by one institution.

Registration establishes legal status.

Financial statements provide insight into financial reporting and capacity.

Regulators understand statutory compliance.

Previous funders may understand delivery performance.

Local stakeholders can provide insight into institutional credibility and operational presence.

Each source contributes part of the picture.

Pre-award third-party due diligence brings these perspectives together.

By combining documentary review, local verification and independent judgement, funders can develop a more complete understanding of institutional capability and delivery confidence before an award is approved.

This is particularly relevant when an international organisation is funding programmes across multiple African markets or operating in an environment where it has limited local presence.

When Does Independent Due Diligence Create the Greatest Value?

Experienced funders rarely commission independent due diligence because they expect problems.

They commission it because they require greater confidence before making significant funding decisions.

Pre-award third-party due diligence is particularly valuable when:

• implementation will occur across multiple African markets;
• the funding organisation has limited local presence;
• the implementing partner is new;
• the investment carries significant fiduciary or reputational risk; or
• governance arrangements require independent assurance before approval.

The principle is simple:

The value of independent due diligence increases when the cost of uncertainty exceeds the cost of verification.

The objective is not to create unnecessary barriers to funding.

It is to ensure that the level of verification is proportionate to the level of risk and uncertainty surrounding the decision.

Why Documentary Review Alone May Not Be Enough

Documentary review remains an important part of any due diligence process.

Organisations may provide:

• registration documents;
• financial statements;
• governance documents;
• organisational policies;
• previous project reports;
• references; and
• other supporting evidence.

These documents provide important information.

However, documentation does not always provide the complete picture of how an organisation operates in practice.

For example, documents may confirm that an organisation is registered, but they may not fully demonstrate its operational presence.

Financial statements may provide useful financial information, but they may not answer every question about current financial management capacity.

Policies may exist, but their practical implementation may require further verification.

This is why pre-award third-party due diligence can go beyond documentary review.

It adds an independent perspective to help determine whether the available evidence is consistent and sufficiently reliable for the funding decision.

The Importance of Local Verification

Across African markets, local context matters.

An organisation may operate within a complex regulatory, economic and institutional environment that cannot always be fully understood through documents alone.

Local verification can help validate information relating to:

• organisational presence;
• operational capacity;
• leadership and governance;
• regulatory standing;
• implementation history;
• stakeholder relationships; and
• institutional credibility.

The objective is not to replace documentation.

It is to test and strengthen the evidence.

That distinction matters.

Documents tell part of the story. Independent verification helps establish whether the story holds up in practice.

For international organisations with limited in-country presence, this can provide an additional layer of assurance before funding is committed.

When Should an International Organisation Consider Pre-Award Third-Party Due Diligence?

There is no single threshold that applies to every funding decision.

The appropriate level of due diligence depends on the circumstances.

However, several situations should prompt funders to consider independent assessment.

1. When the Implementing Partner Is New

A first-time implementing partner naturally presents a different level of uncertainty from an organisation with a long, established funding relationship.

Independent verification can provide additional confidence where the funder has limited historical experience with the organisation.

2. When the Programme Is Multi-Country

A programme spanning several African markets can involve different legal, regulatory and operating environments.

The complexity of implementation may therefore justify additional independent verification before funding is approved.

3. When the Funder Has Limited Local Presence

International organisations cannot always maintain detailed knowledge of every market in which they fund programmes.

Independent local verification can help address information gaps and provide context that may not be available through centralised documentary review.

4. When the Funding Carries Significant Risk

The greater the financial, operational or reputational exposure, the greater the potential consequences of an incorrect funding decision.

In these circumstances, independent due diligence can provide an additional layer of assurance.

5. When Governance Requires Independent Assurance

Some funding arrangements involve complex governance structures, consortiums, multiple implementation partners or significant stakeholder involvement.

Where additional assurance is required before approval, an independent assessment can strengthen the decision-making process.

Pre-Award Third-Party Due Diligence Is About Confidence, Not Suspicion

It is important to understand what independent due diligence is not.

It is not necessarily an indication that a funder suspects something is wrong.

It is not simply a search for reasons to reject an implementing partner.

And it should not automatically be viewed as another compliance hurdle.

At its best, pre-award third-party due diligence is a decision-support mechanism.

It helps answer:

What do we know?

What can we verify?

What remains uncertain?

What risks require mitigation?

And do we have sufficient confidence to proceed?

This distinction is important because a due diligence assessment does not always result in a simple “approve” or “reject” outcome.

It can also help funders identify areas where additional controls, monitoring, reporting or capacity-building may be appropriate.

How Independent Third-Party Due Diligence Supports Better Funding Decisions

A well-designed assessment can help funding organisations:

• identify information gaps before an award is made;
• verify important organisational information;
• understand potential fiduciary risks;
• assess operational capability;
• consider governance and reputational risks;
• strengthen internal approval processes; and
• determine whether additional safeguards are necessary.

The purpose is not to eliminate risk.

No funding decision is completely risk-free.

The purpose is to ensure that decision-makers understand the risk they are accepting.

That is the real value of independent assurance.

Pre-Award Due Diligence and Technical Evaluation Are Not the Same

One of the most common misunderstandings is treating technical evaluation and due diligence as interchangeable.

They are not.

Technical Evaluation

Technical evaluation asks:

“Does this proposal meet the required criteria?”

It focuses primarily on the quality, relevance, methodology, experience and proposed approach.

Organisational Assessment

Organisational assessment asks:

“Does this organisation have the capability to implement the proposed programme?”

It considers areas such as systems, governance, financial management, staffing and operational capacity.

Pre-Award Third-Party Due Diligence

Independent due diligence asks:

“Does the available evidence provide sufficient confidence to support the award decision?”

Each process answers a different question.

Together, they can provide a stronger basis for funding decisions.

Can Pre-Award Third-Party Due Diligence Be Conducted Remotely?

Yes.

Parts of the process can be conducted remotely through:

• documentary review;
• interviews;
• management discussions;
• public-record research;
• reference checks; and
• other forms of independent verification.

However, the appropriate approach depends on the risk profile and the nature of the assignment.

Where documentary evidence leaves important questions unanswered, local verification can provide additional assurance.

For international organisations operating across Africa, this may mean combining remote assessment with targeted local verification where necessary.

The objective is not to make the process unnecessarily complex.

It is to apply the right level of verification to the funding decision.

How EP Martins Helps

Independent Pre-Award Third-Party Due Diligence Across African Markets

EP Martins Advisory supports foundations, development partners, DFIs and international organisations through independent pre-award third-party due diligence across African markets.

Our assessments combine:

Documentary Review

Review of relevant organisational, financial, legal and operational information.

Local Verification

Independent verification of relevant information within the operating environment.

Independent Judgement

An objective assessment of the evidence available to support the funding decision.

Our approach is designed to help funding organisations move beyond simply asking whether documents have been submitted.

The focus is on understanding whether the evidence provides sufficient confidence in the organisation’s capability, credibility and ability to deliver.

This can help funders make more informed decisions before grants, contracts and other funding arrangements are approved.

The Cost of Uncertainty

Every funding decision involves some degree of uncertainty.

The question is whether that uncertainty is acceptable.

When funding is relatively small, the cost of additional verification may outweigh its value.

But when funding is significant, implementation is complex, the partner is new or the operating environment is unfamiliar, the equation can change.

The cost of verification may be small compared with the cost of discovering a problem after funding has already been committed.

That is why risk-based pre-award third-party due diligence can be particularly valuable.

Final Reflection

Independent third-party due diligence is not necessary for every funding decision.

Its value increases as implementation risk, investment size and organisational uncertainty increase.

Because the question is rarely:

“Has the implementing partner met the requirements?”

It is:

“Do we have sufficient confidence to entrust this organisation with funding, delivery and results?”

Across African markets, stronger funding decisions are informed not only by documentary evidence, but also by independent verification of how organisations operate in practice.

Pre-award third-party due diligence provides another layer of confidence before resources are committed.

Because sometimes the most important information is not what an organisation submits.

It is what independent verification confirms.

Frequently Asked Questions

When should an international organisation commission pre-award third-party due diligence?

Pre-award third-party due diligence is most valuable when the implementing partner is new, the investment is significant, the programme spans multiple countries, the funding organisation has limited in-country presence or additional independent assurance is required before an award decision is made.

Why engage an independent due diligence partner in Africa?

Across many African markets, information relevant to implementing partners is often distributed across regulators, previous funders, financial institutions and local stakeholders. Independent assessment can help reconcile these sources and provide stronger assurance before funding is committed.

Can technical evaluation replace pre-award third-party due diligence?

No. Technical evaluation assesses the proposal against the selection criteria. Pre-award third-party due diligence assesses the available evidence and provides independent assurance regarding the implementing partner and the funding decision.

Can pre-award third-party due diligence be conducted remotely?

Documentary review, interviews and other forms of assessment can be conducted remotely. However, local verification can provide additional assurance by validating operational evidence that documentation alone may not confirm.

How does pre-award third-party due diligence reduce implementation risk?

It helps reduce uncertainty before funding decisions are made by combining documentary review with independent verification, giving decision-makers greater insight into the implementing partner’s capability, governance, operational environment and potential risks.

Is third-party due diligence necessary for every funding decision?

No. A risk-based approach is more appropriate. The need for independent due diligence depends on factors such as funding size, programme complexity, partner experience, geographic exposure, local presence and potential fiduciary or reputational risk.

What is the difference between pre-award due diligence and post-award monitoring?

Pre-award due diligence takes place before funding is committed and helps inform the award decision. Post-award monitoring takes place after funding has been approved and focuses on ongoing performance, compliance, delivery and use of resources.

Conclusion

A strong proposal is important.

A successful technical evaluation is important.

Complete documentation is important.

But before significant funding is committed, one question remains:

Do we have sufficient confidence in the organisation behind the proposal?

For international organisations operating across African markets, pre-award third-party due diligence can provide the independent verification needed to answer that question with greater confidence.

EP Martins Advisory helps organisations turn available evidence into informed funding decisions through independent pre-award third-party due diligence across African markets.

Need independent assurance before your next funding decision? Contact EP Martins Advisory.