By Charles Mkoka
The Public Procurement Regulatory Authority (PPRA) recently convened a meeting with the Treasury Registrar, where it showcased significant achievements in the establishment and implementation of the NeST electronic procurement system.
During the meeting, PPRA's Executive Director, Mr. Dennis K. Simba, confidently reported that improvements made under the 2023 Public Procurement Act have led to substantial financial savings—over Sh 14.9 billion through audits and Sh 2.7 trillion through effective monitoring.
Mr. Simba emphasized that the new law mandates procuring institutions to allocate 30% of contracts to underrepresented groups, including women, the elderly, and individuals with disabilities. Since the launch of the NeST system, tenders worth Sh 9.8 billion have been awarded to these special groups, demonstrating the authority's commitment to inclusivity and equitable distribution of resources.
The journey of procurement legislation in Tanzania dates back to 1965, evolving from the Financial Orders Part III to the comprehensive Public Procurement Act No. 3 in 2001. Subsequent amendments in 2004 and the repeal in 2011 laid the groundwork for the current enhancements seen in 2023.
The most notable advancement has been the transition to electronic procurement, which has significantly curtailed financial losses previously incurred through manual audits and oversight.
"Our system is integrated with Nida and Brela, ensuring that penalties apply not only to companies but also to their directors in cases of non-compliance," stated Mr. Simba. He reiterated the importance of public education to ensure adherence to procurement standards and practices.
The integration of the NeST system with various national databases is seen as a pivotal step toward minimizing unnecessary intermediaries that have historically drained resources through inefficient tender management.
As of now, over Sh 10 trillion has been awarded to 36,989 suppliers, with 99.6% of local businesses benefiting from public procurement initiatives by the end of the fiscal year 2023/24. This progress has enhanced transparency, expedited procurement processes, ensured compliance with contract terms, and mitigated corruption.
The NeST system has also streamlined operational protocols by setting price limits, establishing value caps, and refining approval processes for tender boards. These advancements underscore Tanzania's commitment to keeping pace with rapid technological changes in the field of information and communication technology (ICT).
In a display of regional leadership, the PPRA has recently shared insights and experiences from the NeST system with neighboring countries, including Rwanda, positioning Tanzania as a model for effective procurement practices.
Mr. Deodatus Balile, Chairperson of the Editors Forum, concluded the meeting by congratulating Mr. Simba on his recent appointment and pledged support for promoting the PPRA’s initiatives through NeST. He encouraged media houses to leverage the new system for advertising and other activities, highlighting its accessibility for even local individuals seeking tenders in their communities.
On the operational front, the PPRA has successfully established six regional zones across the country—Arusha (Northern Zone), Mbeya (Southern Highlands Zone), Dodoma (Headquarters), Tabora (Central Zone), Dar es Salaam (Coastal Zone), Mwanza (Lake Zone), and Mtwara (Southern Zone)—to enhance service delivery and stakeholder engagement.
The PPRA’s ongoing efforts and innovations in public procurement not only reflect its commitment to good governance but also contribute to the broader economic development of Tanzania.