Digital procurement hits 14.5tri/-

ARUSHA: THE government processed 181,057 contract awards worth 14.5tri/- through the National e-Procurement System (NeST) during the 2025/26 financial year, marking a major milestone in the digitalisation of public procurement to enhance efficiency, transparency and accountability.

The figures were revealed yesterday by the Public Procurement Regulatory Authority (PPRA) Director General, Mr Dennis Simba, during the opening of the 10th Public Procurement Conference in Arusha.

The conference, which brought together procurement professionals, policymakers, private sector representatives and development partners, was officiated by the Arusha Regional Administrative Secretary, Dr Toba Nguvila, on behalf of the Minister for Finance, Ambassador Khamis Mussa Omar.

Mr Simba said the figures demonstrate the growing adoption of the digital procurement platform across government institutions and its contribution to improving transparency and accountability in the use of public resources.

As of June 30, this year, a total of 286,903 tenders had been advertised through NeST, while 181,057 contract awards worth 14.5tri/- had been processed through the system.

Since its launch in 2023, NeST has registered 45,270 approved suppliers, including 42,827 local firms (95 per cent) and 2,379 foreign suppliers (5 per cent).

The platform also serves 62,847 procuring entities with 161,704 registered users.

Mr Simba said PPRA has continued training users and facilitating the registration of special groups, resulting in 23,590 members of special groups being enrolled on NeST since its rollout in July 2023.

As of July 28, this year, the groups had secured 743 contracts worth 53.68bn/-, compared with contracts valued at less than 5bn/- during the corresponding period last year.

“This is a significant achievement and demonstrates the progress made in ensuring that special groups benefit from public procurement opportunities,” he said.

Mr Simba noted that NeST, whose development began in July 2022 before its official rollout a year later, now comprises six core modules covering supplier registration, electronic tendering, contract management, payments, reverse auctions and the e-Catalogue.

He added that PPRA has introduced a real-time risk monitoring module that analyses procurement transactions daily to detect early warning signs, including bid-rigging, collusion, unjustified disqualification of the lowest bidder, delays in procurement decisions and limited competition.

According to him, the system enables real-time monitoring of procurement processes from tender advertisement to contract implementation, generating analytical reports that support timely interventions, evidence-based decision making and stronger compliance with procurement laws.

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Delivering the Finance Minister’s speech, Dr Nguvila said sustainable public procurement requires procuring entities to consider the full life-cycle costs of goods and assets, including operating, maintenance, energy consumption and disposal costs, to ensure value for money while protecting the environment.

He said procurement decisions should go beyond the initial purchase price by incorporating environmental sustainability throughout the life cycle of goods and services.

Dr Nguvila also urged procuring entities to promote environmental conservation, efficient use of natural resources and measures to mitigate climate change.

“These measures will enable the government to obtain value for money while reducing the environmental impact of public procurement,” he said.

He further directed all procuring entities to fully implement legal provisions reserving procurement opportunities for local companies and special groups, saying the move is vital for building an inclusive economy, creating jobs and ensuring public funds circulate within the country.

While commending PPRA for increasing the registration of special groups on NeST, he urged procuring entities to equip them with the skills needed to compete effectively for government tenders and ensure prompt payment after contract completion.

“These groups are still emerging and have limited capital. Delayed payments after they complete contracts can push them back into poverty and undermine the government’s efforts to empower them,” he said.

The conference is discussing key issues, including sustainable digital procurement, support for local firms, empowerment of special groups, implementation of the 30 per cent procurement quota and preferential treatment for indigenous suppliers.

The discussions are expected to produce recommendations that will strengthen procurement reforms and contribute to national development.