Study: Women entrepreneurs struggle to access Tanzania’s preferential procurement opportunities

The findings were presented during a validation meeting held in Dar es Salaam on March 12, 2026 in collaboration with the Women Directors Forum.

Under the Public Procurement Act No.10 of 2023 and its regulations, public institutions are required to allocate at least 30 percent of their annual procurement budgets to special groups, including women, youth, people with disabilities and the elderly.

However, the study indicates that many of the intended beneficiaries are still unable to access these opportunities.

According to the report, “of the 69 women entrepreneurs interviewed, only four reported having participated in government tendering processes,” highlighting a significant gap between policy provisions and actual participation.

Researchers found that although many women entrepreneurs are generally aware that public procurement opportunities exist, most lack adequate knowledge about the procedures required to benefit from the preferential system.

The study notes that women entrepreneurs and small and medium enterprises demonstrate general awareness of public procurement opportunities, but with limited understanding of preferential procurement procedures.

Digital barriers were also identified as a major challenge, particularly when using the government’s electronic procurement platform, the National e-Procurement System of Tanzania (NeST).

Many participants reported difficulties navigating the system due to low digital literacy, limited access to devices and challenges associated with using English-language interfaces.

The report states that slow internet connectivity and high data costs further discourage women entrepreneurs from participating in government tenders.

Some participants said they are forced to pay intermediaries up to Sh100,000 to help them submit tender applications through the system.

Formal business requirements also emerged as a key obstacle.

Many women operate in informal sectors such as markets, fisheries and forestry, where they rely on sector-based permits rather than formal business registration.

However, participation in public procurement requires businesses to be formally registered and to possess documents such as business licences, Tax Identification Numbers and tax clearance certificates.

The study notes that although formalisation is necessary, some women entrepreneurs fear registering their businesses due to potential tax liabilities.

Limited access to finance was another challenge highlighted in the research.

While several government and institutional initiatives aimed at supporting entrepreneurs exist, many of the women interviewed said they had not benefited from such programmes.

Instead, most rely on community savings groups, commonly known as VICOBA, to finance their businesses.

The research adopted a qualitative exploratory approach, including policy reviews, consultations and questionnaires with women entrepreneurs.

Fieldwork was conducted in Kinondoni and Ilala districts in Dar es Salaam and involved 90 participants, including 69 women entrepreneurs and 21 members of the Women Directors Forum.

According to the report, public procurement has the potential to play a critical role in promoting inclusive economic development if the barriers facing women entrepreneurs are addressed.

The study describes public procurement as both a government purchasing mechanism and a tool for achieving social justice, with the potential to support small businesses and promote gender equality.

Researchers conclude that while Tanzania already has a strong legal framework supporting preferential procurement, implementation challenges continue to limit its effectiveness.

“The framework offers strong potential for women’s economic empowerment, but the main challenge lies in implementation rather than the legal and policy environment,” the report states.

To address these gaps, the study recommends increasing awareness campaigns, simplifying procurement procedures and introducing a Kiswahili interface on the NeST platform to make it more accessible to entrepreneurs.

Other recommendations include strengthening coordination between government institutions, improving access to finance and providing training programmes on digital procurement systems, financial literacy and business development.

The researchers also call for stronger collaboration between government agencies, civil society organisations and women entrepreneurs to ensure the preferential procurement system achieves its goal of expanding economic opportunities for women.