Less than 1% of women-led businesses are contracted by government, new report reveals
The study, which was conducted in about five African countries in eastern Africa, such as Kenya, Uganda, Tanzania, Rwanda, and Ethiopia, sought to uncover the challenges and solutions that prevent women-led enterprises from participating in public procurement processes.
"Gender inequality is a major challenge that concerns everyone; however, without tackling its root causes, the journey will be longer and more tedious. The study finds, among others, that whereas governments spend nearly 60% of their national budget every year, women-led businesses take less than 1% of the contracts," it reads in part.
The report further reveals that women-led businesses in the region have participated less in public procurement processes because of a number of factors, which include restricted access to funding, a lack of information and understanding about procurement processes, and discrimination and bias towards women in the procurement sector.
The report also suggests possible remedies to the challenges being faced by women-led businesses.
"One solution is to increase access to finance for women-led businesses. Targeted financing programmes designed to meet the unique needs of women entrepreneurs. These programmes could include microfinance, grants, and other financing options. The research proposes that these do not ask for collateral or traditional financing requirements," the report reads.
It adds, "Another solution is to improve the information and knowledge available to women-led businesses. This information should be about procurement processes. This could be done through targeted training and capacity-building programmes. These should provide women entrepreneurs with the skills and knowledge to enable them to take part in procurement. This would include training on how to prepare bids, follow procurement regulations, and develop business relationships with procurement officials."
"The research proposes addressing discrimination and bias against women. women, especially in the procurement sector, through awareness-raising and advocacy efforts. These efforts would include promoting gender equality. "addressing the underlying attitudes and biases that prevent women from participating in the procurement sector."