ARUSHA: A digital platform introduced to transform Tanzania’s public procurement system has processed government contracts worth 14.5tri/- in the 2025/26 financial year, marking a major shift towards electronic tendering, improved oversight and greater transparency in public spending.
Through the National e-Procurement System (NeST), the government processed 181,057 contract awards during the year as public institutions increasingly moved away from traditional procurement procedures.
The milestone was announced by Public Procurement Regulatory Authority (PPRA) Director General Dennis Simba during the opening of the 10th Public Procurement Conference in Arusha, where procurement professionals, policymakers, private sector representatives and development partners gathered to discuss the future of public purchasing.
The conference was officiated by Arusha Regional Administrative Secretary Dr Toba Nguvila on behalf of Finance Minister Ambassador Khamis Mussa Omar.
Mr Simba said the growing adoption of NeST demonstrates how technology is reshaping public procurement by improving access to tender opportunities, strengthening monitoring and reducing weaknesses associated with manual processes.
“As of June 30, this year, a total of 286,903 tenders had been advertised through NeST, while 181,057 contract awards worth 14.5tri/- had been processed through the system,” he said.
Since its launch in 2023, NeST has expanded into a nationwide procurement platform connecting government institutions with suppliers through a centralised digital system.
The platform has registered 45,270 approved suppliers, including 42,827 local companies and 2,379 foreign firms. It is also being used by 62,847 procuring entities with 161,704 registered users.
For local businesses, the digital shift is expected to make government contracts more accessible by reducing the need for physical submissions and improving visibility of available opportunities.
PPRA has also used the platform to increase participation of special groups, including youth, women and people with disabilities. Since the system was introduced, 23,590 members of special groups have been registered.
By July 28 this year, the groups had secured 743 government contracts worth 53.68bn/-, compared with contracts valued at less than 5bn/- during the same period last year.
Mr Simba described the increase as a major step towards ensuring that public procurement contributes to broader economic inclusion.
“This is a significant achievement and demonstrates the progress made in ensuring that special groups benefit from public procurement opportunities,” he said.
Beyond tender processing, NeST is also being used as a monitoring tool to identify risks and improve compliance.
The system now includes six core modules covering supplier registration, electronic tendering, contract management, payments, reverse auctions and the e-Catalogue.
PPRA has introduced a real-time risk monitoring module that analyses procurement transactions daily to identify possible warning signs, including bid-rigging, collusion, unjustified disqualification of the lowest bidder, delayed procurement decisions and limited competition.
Mr Simba said the system allows regulators to track procurement activities from tender advertisement to contract implementation, helping authorities intervene earlier and make decisions based on available data.
However, officials at the conference said digital transformation alone is not enough unless procurement also delivers greater economic and environmental value.
Delivering the Finance Minister’s speech, Dr Nguvila said government institutions should consider the full life-cycle costs of goods and assets, including maintenance expenses, energy consumption and disposal costs, rather than focusing only on initial purchase prices.
He said sustainable procurement would help the government achieve value for money while reducing environmental impacts.
“These measures will enable the government to obtain value for money while reducing the environmental impact of public procurement,” he said.
Dr Nguvila also called on procuring entities to fully implement legal provisions that reserve opportunities for local companies and special groups, saying the approach was important for job creation and ensuring public funds support domestic economic growth.
While acknowledging progress in registering special groups on NeST, he said more support was needed to help emerging businesses compete effectively for government contracts.
He also warned that delayed payments after contract completion could threaten the survival of small suppliers.
“These groups are still emerging and have limited capital. Delayed payments after they complete contracts can push them back into poverty and undermine the government’s efforts to empower them,” he said.
The conference is discussing key procurement reforms, including sustainable digital procurement, support for local firms, implementation of the 30 per cent procurement quota and preferential treatment for indigenous suppliers.
As Tanzania expands the use of NeST, the next challenge will be ensuring that digital access translates into meaningful participation for smaller businesses while maintaining strong controls over public spending.
