New procurement law remains a challenge, Tanzanian professionals say

Arusha. Procurement and supplies professionals have demanded adequate training on the implementation of the new law which they see as an obstacle in their activities.

The Public Procurement Act No 10 of 2023 and its 2024 regulations mandate that all procurement and supply chain activities be conducted through the National e-Procurement System (NeST), but the industry players say that has proven to be a significant challenge in the sector as they carry out their duties.

According to the law, any individual found violating or failing to comply with the law may face a fine of up to Sh10 million, imprisonment of up to three years, or both.

Speaking at the fourth annual meeting of the Association of Procurement and Supply Chain Professionals (APSP), the association’s chairman, Emmanuel Urembo, said that implementing the law has been a major obstacle because many members lack sufficient expertise in using the system.

He noted that the law also requires procurement and supply chain professionals to give preference to local suppliers and contractors, especially for projects not exceeding Sh50 billion.

“However, some of our professionals are unsure how to implement this preference and the criteria involved,” said Mr Urembo.

He urged the Public Procurement Regulatory Authority (PPRA) to provide adequate training on the implementation of the law and how the system operates to avoid legal complications.

“Implementation is still difficult because many of our people lack sufficient training to comply with the law. We are requesting PPRA to reduce the cost of these training sessions to enable more professionals to meet the requirements of the law and the NeST system.”

Currently, the PPRA charges Sh550,000 per person for training and seminars.

Mr Urembo suggested reducing the fee to Sh250,000 to allow more people to attend and gain a better understanding of the law and the NeST system.

Speaking at the meeting, PPRA director general, Mr Dennis Simba, acknowledged the request and urged professionals to continue working with integrity and professionalism, avoiding unethical practices such as greed and corruption.

He also emphasised the importance of quality work, value for money, compliance with the law, and adherence to standards when implementing the new law’s provision for preferential treatment of local suppliers and contractors.

“The government has established a favourable environment and laws to protect Tanzanians by giving them special preference over foreign companies and individuals so they can benefit from skills, knowledge, equipment and retained funds. However, this does not excuse poor-quality work,” said Mr Simba.

Regarding preferential treatment for local suppliers, Mr Simba added that the government has ensured that local investors are prioritised in contributing to the country’s development, especially through public procurement, by legally granting them this preference.

“However, this must be done while ensuring quality, value for money, and compliance with the law. It’s not just preference for the sake of preference,” he said.

The government continues to implement strategic mega-projects and launch new initiatives across various economic sectors.

Mr Simba highlighted that the success of the projects relies heavily on the competence and expertise of professionals in various fields, including procurement and supply chain management.

“Negligence and lack of professionalism in managing the public procurement chain can derail development projects or result in substandard implementation. That is why I emphasise professionalism and adherence to the law,” Mr Simba said.