NMB integrates with NeST for instant verification of public tender guarantees

Dar es Salaam. Tanzania’s push for digital public services has received a boost after NMB Bank partnered with the Public Procurement Regulatory Authority (PPRA) to launch a Digital Bank Guarantee Confirmation service aimed at improving transparency, speed and efficiency in government procurement.

The solution integrates the bank’s systems directly with the National e-Procurement System of Tanzania (NeST), enabling real-time verification of bank guarantees submitted by bidders participating in public tenders. Speaking during the launch at NMB’s head office in Dar es Salaam, the bank’s managing director and chief executive officer, Ruth Zaipuna, said the new service will significantly reduce the time required to verify guarantees.

“Through this system, verification that previously took several days will now be completed within a very short time,” she said.

She noted that the bank remains committed to delivering financial solutions that prioritise speed, security and transparency while supporting sustainable national economic growth.

PPRA director general, Dennis Simba, said the development aligns with President Samia Suluhu Hassan’s directive that government digital systems should communicate with each other to simplify service delivery and improve the business environment. Under the new system, bidders will only need to enter a bank guarantee number issued by the respective bank.

The NeST platform will automatically retrieve the guarantee from the issuing bank and submit it to the procuring entity.

“As you are aware, all government procurement processes are now conducted through the NeST system, which currently communicates with more than 20 institutions, including banks,” Mr Simba said.

He added that procuring entities will no longer need to contact banks individually to verify the authenticity of guarantees submitted by bidders.According to Mr Simba, the digital verification system confirms the authenticity of a guarantee, its value, validity period and its linkage to a specific tender, reducing the risk of document forgery.

“For many years these guarantees were issued and managed in paper form, which created challenges such as verification delays, risks of forgery, additional costs and inconvenience for procuring entities, banks and bidders,” he said.

Beginning this month, March 2026, bidders who are NMB customers using the NeST system will be able to submit bank guarantees digitally through the platform.

Initially, the service will apply to tender security guarantees, advance payment guarantees and performance security guarantees.

Apart from enabling real-time verification between PPRA and the bank, the platform is expected to reduce administrative burdens, strengthen compliance with procurement regulations and improve accountability across the procurement value chain.

Ms Zaipuna said public procurement remains a key pillar of Tanzania’s economic activity, involving corporations, small and medium-sized enterprises, contractors and suppliers competing for government tenders.

Through the partnership, PPRA has recognised NMB as the first bank in Tanzania to offer fully integrated digital bank guarantee verification with the regulator’s system. Currently, the bank is the only institution providing direct verification through NeST.

She added that the service will particularly benefit businesses in the construction, supply and services sectors by accelerating tender participation, enabling instant guarantee validation and reducing paperwork and compliance risks.

The bank has urged customers still using traditional guarantee processes to migrate to the digital platform, assuring them of support during the transition as Tanzania moves towards more paperless procurement systems.