By Elizabeth Hombo
It is increasingly evident that if proper education on Tanzania’s electronic procurement system, NeST, were delivered effectively at grassroots level, the statutory 30 percent public procurement allocation for special groups would significantly reduce poverty and widen economic participation.
Regulation 34(2) of the 2024 Public Procurement Regulations requires responsible authorities to provide education and training to youth, women, older persons and people with disabilities on how to access the 30 percent procurement allocation and use the NeST platform.
Yet despite this clear legal mandate, many intended beneficiaries remain unaware of how to register on NeST or how to compete for government tenders.
The Public Procurement Regulatory Authority (PPRA) has acknowledged the gap. PPRA Director General Dennis Simba says the authority has undertaken nationwide awareness campaigns but concedes that “the journey is still long” and that collaboration across institutions is essential.
“I believe that if we work together as stakeholders, we can deliver this message more effectively and increase participation in public procurement,” Simba says.
Senior Public Relations Officer at PPRA, Joseph Muhozi, adds that the Authority is intensifying public communication efforts, including educational television dramas and media campaigns, while encouraging successful bidders to act as ambassadors within their communities.
Enforcement and accountability
PPRA says it publishes annual performance and audit reports, including investigative audits. More than 20 suppliers have recently been blacklisted for non-compliance or malpractice.
“We conduct audits similar to those of the Controller and Auditor General,” Muhozi explains. “Institutions implicated in misuse of funds, corruption or other irregularities face action. Suppliers can also be suspended under the law.”
However, enforcement alone will not resolve the structural weaknesses limiting participation by special groups.
What must be done
Stakeholders interviewed argue that reform must go beyond awareness campaigns.
Jonas Lubago, Secretary General of the Confederation of People With Disabilities (SHIVYAWATA), says the NeST registration process should be simplified for companies owned by people with disabilities.
“The system needs to be improved so that registration is not overly bureaucratic,” he argues. “Officials must leave their offices and engage directly with these groups at community level.”
He also proposes easier access to the 2 percent local authority loan scheme to provide working capital for beneficiaries who secure contracts.
Mwajuma Hamza, Chairperson of the Tanzania Women Chamber of Commerce (TWCC), says women entrepreneurs must first ensure they are registered on NeST, but adds that continuous mobilisation and targeted training are necessary to raise participation rates.
Local government officials also highlight infrastructure challenges. Agness Kulebelwa, an executive officer in Kwembe Ward, notes that internet access and system complexity remain barriers for ordinary citizens.
“Even after training, the system can still be difficult. For a typical citizen it is even more challenging,” she says.
Structural reform agenda
The 2024/25 PPRA report, informed by the MAPS 2025 assessment and internal research, proposes a far-reaching reform agenda aimed at improving value for money and transparency in Tanzania’s procurement system.
The proposed reforms include the development of a National Sustainable Public Procurement policy incorporating green procurement practices aligned with net-zero emissions targets, as well as the creation of a dedicated sustainable procurement window within NeST to monitor compliance and track data.
The authority also recommends integrating NeST with budget and payment systems such as MUSE to ensure timely payments and better contract performance tracking.
Further measures include introducing automated cost estimation and electronic bid evaluation modules, deploying artificial intelligence tools to flag corruption risks, and publishing procurement data in machine-readable Open Contracting Data Standard format through a centralised portal. The report also calls for mandatory third-party IT security audits of NeST and compulsory integrity training for procurement officers, alongside conflict-of-interest declarations.
In addition, the authority proposes publishing the names of poorly performing procuring entities and sanctioned officials, reviewing remuneration for certified procurement professionals to reduce corruption risks, and establishing specialised procurement lawyers within procurement units.
Moving from compliance to inclusion
While the legal framework for allocating 30 percent of procurement to special groups is in place, implementation gaps persist at multiple levels – awareness, digital literacy, access to finance, system usability and institutional coordination.
Addressing these weaknesses requires decentralised, ward-level training campaigns rather than relying solely on national seminars.
It also demands simplified digital processes tailored to micro and small enterprises, improved access to bridging finance for first-time contractors, stricter enforcement of mandatory NeST use across public institutions, and greater transparency through open data publication to enable public scrutiny.
Public procurement represents one of Tanzania’s largest economic instruments.
If the 30 per cent allocation were fully implemented, billions of shillings would circulate among youth, women and people with disabilities, strengthening domestic enterprise and broadening the tax base. The challenge now is not legislation, but execution. Without practical reforms that translate legal entitlement into accessible opportunity, the 30 per cent promise risks remaining a policy ambition rather than an engine of inclusive economic growth.
