Every year, the Ugandan government spends enormous sums buying goods, constructing roads, equipping hospitals and paying companies to provide public services. But how much of that money stays in Uganda, creates jobs and helps local businesses grow? That question was at the centre of Prime Minister Robinah Nabbanja’s call for reforms in public procurement, the process through which government institutions purchase goods, works and services using public funds. Nabbanja wants governments to treat procurement as more than a routine exercise of awarding contracts. Instead, she argues, public spending should help build domestic industries, strengthen local businesses and improve services for ordinary citizens. Her message was delivered by Second Deputy Prime Minister Dr Crispus Walter Kiyonga at the 10th International Public Procurement Conference (IPPC10), held at Hotel Africana in Kampala. The threeday meeting, which ended on November 5, brought together procurement experts, academics, policymakers and business epresentatives from several countries. “Public procurement is far more than an administrative process. It is a strategic instrument of governance, economic transformation and public service delivery,” Nabbanja said. The financial implications are substantial. According to figures she presented, public procurement accounts for between 10 per cent and 30 per cent of national gross domestic product globally. In Uganda, procurement expenditure exceeds 50 per cent of annual government budgets. This means decisions about who supplies government institutions, builds infrastructure or provides services can significantly influence business opportunities, employment and the quality of public services. Nabbanja argued that governments should use this spending power to strengthen domestic value chains, the networks of farmers, manufacturers, suppliers and service providers involved in producing and delivering goods. “Public procurement must be used across the world as a means to tap into the opportunity of not only developing domestic value chains, but also preparing homegrown enterprises to enter and compete sustainably in global value chains,” she said. Her proposals included fair competition, stronger accountability, wider economic participation and greater consideration of sustainability when awarding contracts. She also urged governments to adopt electronic procurement, artificial intelligence and data analytics to improve transparency, efficiency and oversight. Electronic procurement allows institutions to advertise tenders, receive bids and manage contracts digitally. Data analysis can help identify unusual spending patterns, while artificial intelligence could assist officials in examining large volumes of procurement information. However, Nabbanja warned that technology must be supported by cybersecurity, data protection, ethical safeguards and human oversight. “Strong procurement systems require more than good laws; they demand committed leadership, professional competence, effective oversight and the political will to act when standards are violated,” she said. Uganda Management Institute directorgeneral Prof James L. Nkata raised a related concern: whether Africa receives sufficient economic benefits from the enormous sums its governments spend. He estimated Africa’s public procurement industry at approximately $535 billion, equivalent to 17% of the continent’s GDP. Nkata questioned whether procurement rules sometimes allow money to flow from developing economies to wealthier countries instead of supporting local production. “As you congregate, you procurement gurus, I ask you to examine whether or not procurement, if allowed religiously, has become the new haemorrhage of South to North resources,” he said. His argument was not that governments should abandon international suppliers, but that procurement decisions should be examined for their contribution to domestic economic development. He also cautioned against assuming that digital systems automatically eliminate corruption. Although electronic records and reduced direct contact between bidders and officials can improve transparency, technology can introduce weaknesses of its ownThe post Nabbanja wants government contracts to create more jobs for Ugandans appeared first on The Observer Media Ltd.