By Elizabeth Hombo
A lack of awareness and practical training on Tanzania’s National e-Procurement System (NeST) is undermining the government’s flagship policy to reserve 30 percent of public procurement opportunities for youth, women, older persons and people with disabilities.
Although Regulation 34(2) of the 2024 Public Procurement Regulations requires responsible institutions to provide training to special groups before registration, evidence from Ubungo Municipality in Dar es Salaam suggests that implementation remains weak.
Interviews conducted with members of these groups reveal that many have little or no knowledge of either the 30 percent allocation rule or the NeST platform itself.
A strong legal framework – weak execution
Under Section 73(1) of the Public Procurement Act 2023, all public procurement, supply and disposal activities must be conducted electronically through NeST.
Section 73(2) further provides that in the event of system failure, the Public Procurement Regulatory Authority (PPRA) must issue guidance on alternative procedures.
Regulation 34(2) goes further, requiring that special groups receive adequate training before being certified to participate fully in the procurement system.
However, stakeholders say the reality on the ground falls short of these requirements.
Disability groups cite structural barriers
Jonas Lubago, Secretary General of the Confederation of Dissabled People (SHIVYAWATA), acknowledged that disability organisations were involved in drafting the 2024 regulations – a positive step.
Yet he highlighted practical barriers that persist.
Applicants must first register formal companies before bidding for government tenders – a process that many individuals find complex and costly. While training sessions are organised, Lubago questioned whether they are reaching the intended beneficiaries.
“I suspect the right people are not always the ones receiving the training. Some participants do not even operate businesses,” he said.
He also cited financial constraints. For example, some training initiatives are conducted in partnership with commercial banks, but participants must cover their own transport costs – something many cannot afford.
Even when tenders are secured, lack of start-up capital and delayed government payments pose serious obstacles.
“If someone cannot afford bus fare to attend training, where will they find capital to execute a contract?” Lubago asked.
He proposed that the 2 percent local authority loan scheme be streamlined to support beneficiaries who win contracts, and called for greater integration between regulatory bodies such as BRELA and TRA to simplify business registration and licensing processes.
Women entrepreneurs rely on PPRA
Mwajuma Hamza, Chairperson of the Tanzania Women Chamber of Commerce (TWCC), said that most NeST-related training for women entrepreneurs is organised by PPRA, with business associations invited to participate.
“Whenever there is a challenge, PPRA has been supportive in providing education and clarification,” she noted.
However, the reliance on a single regulator to drive awareness raises questions about whether local government authorities are playing a sufficiently active role.
PPRA: Progress is being made
PPRA Director General Dennis Simba defended the authority’s outreach efforts, saying nationwide campaigns have been conducted to promote participation in public procurement.
He cited targeted initiatives for visually impaired groups and the training of community development officers across councils.
According to PPRA Senior Public Relations Officer Joseph Muhozi, the authority has reached more than 1,200 groups across the country since 2022.
Muhozi said that since NeST was launched in July 2023, tenders worth Sh30 billion have been awarded to special groups.
However, he acknowledged persistent challenges: some businesses register on the platform but do not submit bids, while others fear competition or lack confidence in the system.
“There is no electronic system without challenges,” Muhozi said, noting that instructional videos and rural outreach programmes have been introduced to improve digital literacy.
Governance questions at local level
When approached for comment on whether NeST awareness sessions had been conducted in his ward, Sinza Councillor Raphael Awino declined to provide a direct answer, referring enquiries to the Ubungo Municipal Director.
The response highlights broader concerns about accountability and coordination between central regulators and local government authorities.
Economic stakes are high
Public procurement in Tanzania represents a multi-trillion-shilling market. If effectively implemented, the 30 per cent allocation policy could significantly expand participation of small and medium-sized enterprises, stimulate local entrepreneurship and promote inclusive growth.
However, without sustained grassroots education, simplified compliance processes and improved access to finance, the NeST reform risks entrenching digital exclusion rather than broadening opportunity.
For Tanzania’s procurement reform to deliver meaningful economic empowerment, awareness must move beyond policy documents and workshops in major cities. It must translate into practical access for traders, contractors and entrepreneurs at ward and community level – including those in Ubungo who remain largely unaware of their statutory entitlement. Until then, the promise of inclusive procurement will remain more aspirational than operational.
