**Uganda**: The National Social Security Fund has unveiled a procurement budget of Shs 827 billion for 2024/25, focusing on infrastructure investments and local business support. The strategy includes advanced technologies to enhance efficiency and aims to bolster national economic development through strategic procurement practices.
The National Social Security Fund (NSSF) has announced a substantial procurement budget of Shs 827 billion for the 2024/25 financial year, intended to facilitate significant investments in infrastructure, services, and innovation within Uganda. The allocation is expected to act as a strategic economic lever that aims to bolster local businesses while promoting national development.
At the 9th NSSF Suppliers Forum, Managing Director Patrick Ayota elaborated on the budget, emphasising that the fund’s approach to procurement prioritises value delivery not only through cost efficiency and quality services but also via social and economic impacts. “Every shilling spent must deliver value,” Ayota stated, underscoring the dual focus on fiscal responsibility and social benefit.
The budget has been methodically allocated to various sectors, with the majority of funds, totalling Shs 653.9 billion, directed towards construction and infrastructure projects. Additionally, Shs 118 billion has been earmarked for the supply of goods, Shs 39.1 billion for non-consultancy services, and Shs 16.1 billion for consultancy services. This allocation strategy is designed to maximise developmental impacts, aligning with Uganda’s Vision 2040 strategy that emphasises economic development through substantial infrastructure investment.
Ayota also shared insights into NSSF’s procurement strategy, which aims not merely at spending but at transformative impacts. The fund plans to integrate advanced technologies including artificial intelligence (AI), blockchain, and e-procurement platforms to improve operational efficiency, transparency, and accountability within the procurement process. “These innovations will enhance data-driven decision-making, optimise costs, ensure transparency, reduce fraud in contracts, and enable real-time tracking of bids and contracts to improve supplier engagement,” he explained.
According to the Public Procurement and Disposal of Public Assets Authority (PPDA), a notable 60 per cent of Uganda’s national budget is channelled through procurement, signifying its crucial role in national development. Executive Director of PPDA, Benson Tumuramye, reiterated the government’s policy focus on local supplier prioritisation, highlighting that projects below Shs 15 billion are exclusively reserved for Ugandan contractors, while larger projects have a requirement to subcontract a minimum of 30% of the work to local firms.
The Shs 827 billion procurement budget from NSSF is expected to directly benefit Ugandan businesses, fostering their growth and contributing to employment opportunities and economic stimulation. Tumuramye also encouraged suppliers to actively reject and report corrupt practices, stating, “If all suppliers refuse to engage in corruption, the system will change.” He reassured that the PPDA has mechanisms in place for compliance handling.
Edward Ssengendo Kkubo, director of Monil Cleaning and Fumigation Services, contributed insights based on his experiences within the sector. He advised potential suppliers to keep thorough documentation and financial records, suggesting that even unsuccessful bids can serve as valuable learning experiences. “Always engage directly with decision-makers,” Kkubo recommended, while also expressing confidence in the fairness and reliability of NSSF’s procurement processes, noting the timely payments and equitable awarding of contracts.
Overall, the NSSF’s strategic procurement budget reflects an integrated approach aimed at fostering economic growth, leveraging local expertise, and utilising innovative technologies to enhance the efficiency and accountability of the procurement system in Uganda.
Source: Noah Wire Services
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