By Adam Kabalega

Public procurement plays a central role in governance, particularly in Uganda, where it accounts for about 60% of government expenditure, well above the global average of 10–20% of GDP. Before 2003, Uganda’s procurement system was characterized by inefficiencies, centralized decision-making, and widespread corruption. Governed by the 1977 Public Finance (Tender Board) Regulations, the system operated under a centralized Central Tender Board, which caused significant delays and lacked transparency. Corruption was endemic, with estimates suggesting that 10% of public expenditure was lost through procurement-related malpractice.

In response to these challenges, Uganda introduced the Public Procurement and Disposal of Public Assets (PPDA) Act in 2003. This reform established an independent PPDA Authority to oversee procurement across all ministries and agencies. It mandated open competitive bidding as the standard method, limited sole-sourcing to exceptional cases, and required all public entities to establish dedicated Procurement and Disposal Units (PDUs). Annual procurement planning was also institutionalized to align purchases with national development goals. These reforms significantly reduced delays, improved value for money, and enhanced public trust in procurement processes.

Over time, the Act has been amended to address emerging challenges. The 2011 amendment decentralized procurement authority to local governments, aimed at reducing central bottlenecks. However, this revealed significant capacity gaps, with many local governments lacking trained personnel. The same amendment strengthened anti-corruption measures, including stricter penalties and contractor debarment. In 2012 alone, 15 firms were blacklisted for malpractice, and tender processing times dropped by 20%.

The 2014 amendment introduced electronic procurement through the Government Procurement Portal (GPP), enhancing efficiency and transparency. It reduced paperwork, minimized manual errors, and offered public access to tender data. A local content provision was also added, mandating a 30% preference for Ugandan contractors, which increased local participation in projects, particularly in the road sector, where local contractor involvement rose from 40% in 2015 to 65% by 2023. While these measures stimulated SME growth and job creation, they also highlighted the need for technical and financial support for local firms.

The 2021 amendment streamlined procurement for low-value contracts and enhanced responsiveness during emergencies. It also introduced green procurement guidelines, promoting the acquisition of eco-friendly goods and services. These reforms led to a 10% increase in green contracts by 2023 and supported Uganda’s environmental sustainability goals. However, supplier awareness and the higher cost of sustainable products remain barriers to wider adoption.

Overall, these amendments have significantly improved procurement efficiency, saving an estimated UGX 100 billion annually and reducing procurement cycle times by up to 40%. The Ministry of Works and Transport, for instance, shortened its road maintenance tender process from 90 to 60 days. Transparency has also improved, with increased access to procurement data and more rigorous PPDA audits. Nonetheless, enforcement of disclosure rules remains inconsistent, with only 70% compliance across government entities.

Local content policies have spurred SME involvement and job creation, with an estimated 50,000 jobs generated across various sectors. Yet, technical limitations and limited capacity among local firms can cause delays and affect quality. Green procurement efforts are beginning to gain momentum, but broader implementation is hindered by a lack of supplier readiness and market incentives.

Case studies reinforce these findings. During the COVID-19 pandemic, the Ministry of Health used the GPP to procure $50 million worth of medical supplies swiftly and transparently, reducing costs and corruption risks. The Kampala-Entebbe Expressway project highlighted the benefits and challenges of local content rules, generating UGX 200 billion in local contracts but also experiencing quality and delay issues. Similarly, the Ministry of Public Service adopted eco-friendly features in public buildings, reducing energy use by 15%, though at a higher upfront cost and with limited supplier options.

Despite these gains, persistent challenges hinder full implementation. Capacity gaps are particularly acute at the local level—only 30% of PDUs are fully staffed with trained personnel, and training efforts are significantly underfunded. Corruption remains a costly issue, with an estimated annual loss of UGX 500 billion. Bureaucratic resistance to change slows adoption of the GPP, especially in rural areas where digital literacy and internet access are limited. Furthermore, public awareness of procurement transparency tools remains low, reducing opportunities for citizen oversight.

To address these issues, several recommendations emerge. Oversight must be strengthened through increased funding for the PPDA Authority and the creation of an independent anti-corruption task force. Capacity building is critical—training budgets should be increased fivefold, and professional certification programs should be expanded in partnership with academic institutions. Full rollout of e-procurement by 2027 is essential, along with improved cybersecurity and mobile accessibility. Public awareness campaigns and civil society partnerships can boost citizen engagement and oversight. Lastly, green procurement should be incentivized through tax breaks and mandatory training for suppliers, with a target of achieving 25% green contracts by 2030.

In conclusion, the PPDA Act has transformed Uganda’s procurement landscape, driving improvements in efficiency, transparency, local participation, and sustainability. Yet challenges such as corruption, limited capacity, and resistance to digital transformation must be tackled with sustained political will and strategic investment. With targeted reforms and strong implementation, the PPDA framework can serve as a cornerstone of good governance and inclusive economic development in Uganda.