Uganda reforms target local procurement as a tool for inclusive economic growth and job creation

KAMPALA CITY , Uganda’s local governments are being urged to treat public procurement not as routine administration, but as a practical route to jobs, enterprise growth and more inclusive development.

The push is being driven by reforms associated with the Permanent Secretary in the Ministry of Local Government, Ben Kumumanya, whose approach is now being presented to officials as a way of turning public spending into wider economic participation rather than leaving contra...

During sensitisation meetings for procurement officers, accounting officers, contracts committees, city town clerks, mayors and technical staff, officials said the country must move away from a system in which public contracting remains inaccessible to young entrepreneurs, women and persons with disabilities. The language used at the sessions was deliberately forceful: procurement, they argued, should become an instrument of inclusion rather than a closed administrative process.

Johnson Musinguzi, the Assistant Commissioner for Procurement Inspection and Coordination, said local authorities should see procurement as a mechanism for economic empowerment. He argued that public money should translate into visible value in communities, rather than being absorbed by paperwork alone.

Officials at the engagements said procurement accounts for a large share of local government expenditure, giving it the potential to influence employment, business creation and service delivery if handled transparently. The message reflects the Public Procurement and Disposal of Public Assets Authority’s wider mandate, which is to regulate Uganda’s procurement system in a way that supports effective service delivery, transparency and accountability.

The reforms also draw on the reservation and preference arrangements under the Public Procurement and Disposal of Public Assets Act, Cap 205, which set aside part of public procurement for Special Interest Groups. The policy provides opportunities for youth, women and persons with disabilities, while smaller contracts at local government level are also reserved for these groups. Women-led firms must meet ownership thresholds, and youth enterprises must demonstrate youth control and participation to qualify.

Officials said the intention is to remove long-standing barriers that have kept smaller businesses from competing. Under the scheme, eligible enterprises are exempt from bidding fees and may submit bid securing declarations instead of traditional securities, easing some of the upfront costs that often shut out smaller players before they can even participate.

Corruption was another central theme. Officials warned that bribery, favouritism and the commercialisation of public office continue to distort recruitment and contracting, while weakening confidence in local institutions. Musinguzi said public service should be treated as a trust, not a trading ground, and cautioned that corrupt procurement ultimately deprives communities of jobs and services.

The reforms also link procurement to broader government efforts to expand vocational training and industrial skilling. Musinguzi said skills programmes can only deliver their full impact if graduates can access markets and contracts. In that sense, procurement is being presented not merely as a compliance function, but as the missing bridge between training and income.

The broader campaign sits alongside earlier efforts by Kumumanya to tighten integrity and improve accountability in local government institutions, including engagements with district and city service commissions in March 2026. Together, those moves suggest a wider attempt to make local administration more disciplined, more transparent and more economically useful to the people it serves.

Source: Noah Wire Services