Uganda empowers minority groups in public procurement

The new guidelines, unveiled by the Minister of Finance, Hon. Henry Musasizi, introduce reservation schemes that will create a more level playing field for Ugandan companies. Here's a breakdown of the key changes:

Local First: Procurement opportunities will be prioritized for Ugandan, resident, and East African Community (EAC) businesses for certain projects. This aims to stimulate domestic production and reduce reliance on imported goods and services.

Supporting Local Manufacturing: Government entities will be required to source Ugandan-made products whenever possible, further encouraging domestic production.

Subcontracting Boost: Foreign contractors on government projects will be required to subcontract at least 30% of the work to Ugandan providers, injecting more money into the local economy.

Women, Youth & PWD Empowerment: A significant shift is coming for women, youth, and persons with disabilities (PWDs). Registered associations representing these groups will now have access to a dedicated 15% share of the annual procurement budget of government entities. Additionally, specific procurements under UGX 30 million (central government) and UGX 10 million (local government) will be exclusively reserved for them. Simplified bidding procedures, including exemptions from bid security and fees, will further ease their participation.

Expected Benefits:

This initiative is expected to have a multi-pronged benefit for Uganda's economy:

Job Creation: Increased local procurement is likely to create new jobs and stimulate economic activity across various sectors.

Import Reduction: By prioritizing domestic production, the government aims to reduce reliance on imports, potentially saving foreign currency and boosting self-sufficiency.

Inclusive Growth: Empowering women, youth, and PWDs through participation in public procurement creates a more inclusive economy, fostering broader financial participation.

The Ugandan government views these guidelines as a critical step towards achieving sustainable development and building a more dynamic and inclusive economy.

"Together, these guidelines will in the mid and long term address concerns of unemployment, low production, and household income inequalities across all sectors," said the minister.

"They embody our vision of a dynamic and inclusive economy, where every Ugandan enterprise has the chance to thrive and contribute to national prosperity. We hope that through inclusive participation of local providers, women, youth, and persons with disabilities we shall contribute to the achievement of sustainable development, reduce dependency on imports, and promoting self-sufficiency."

The success of this initiative, he said, will depend on its effective implementation and monitoring.

Businesses and civil society organizations are expected to play a crucial role in ensuring a smooth transition and maximizing the intended benefits.