Gov't Unveils Guidelines to Boost Local Participation in Public Procurement

The Minister of Finance (General Duties), Hon. Henry Musasizi has introduced transformative guidelines aimed at promoting the participation of local providers, women, youth, and persons with disabilities in public procurement processes.

In his address at the Uganda Media Centre, the minister highlighted that the guidelines are designed to create equitable opportunities for all citizens and affirmative interventions for marginalized groups.

The first guideline, "Reservation Schemes to Promote the Participation of Local Providers," marks a significant milestone in Uganda's procurement system. Under this initiative, specific procurements will be reserved for national, resident, and East African Community (EAC) contractors, suppliers, manufacturers, and consultants. Minister Musasizi emphasized that these measures will ensure equitable access to government contracts, stimulate domestic production, and foster import substitution, ultimately bolstering the local economy.

Key highlights of the guideline include:

• Different procurement thresholds for Ugandan, resident, and EAC providers.
• Mandatory procurement of products and inputs manufactured in Uganda from national and resident providers.
• Subcontracting requirements mandating that at least 30% of the value of works be awarded to local providers in cases where the main contractor is foreign.

The second guideline focuses on "Reservation Schemes to Promote the Participation of Registered Associations of Women, Youth, and Persons with Disabilities." Designed to facilitate the involvement of these marginalized groups in public procurement processes, this initiative underscores the government's commitment to inclusive economic empowerment.

Key features of this guideline include:

• Reservation of 15% of entities' annual procurement budgets for registered associations of women, youth, and persons with disabilities.
• Central and Local Government entities are mandated to reserve procurement requirements for eligible associations, promoting their meaningful participation in government contracting.

Minister Musasizi highlighted the simplified bidding procedures for registered associations, such as exemption from bid security and bidding fees, streamlining their participation in procurement processes.

"These guidelines align with Uganda's vision of a dynamic and inclusive economy, where every enterprise, regardless of size or status, has equal opportunities to thrive." Musasizi noted.

"By promoting the participation of local providers and marginalized groups, Uganda aims to stimulate economic growth, reduce unemployment, and bridge income inequalities across sectors."

Minister Musasizi emphasized the importance of collective efforts in realizing Uganda's transformation into a modern, industrialized, and prosperous nation.