Procurement reform drive targets sh7.2 trillion public spend efficiency

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Uganda’s drive to extract greater value from its massive public investments has received fresh push, with the Public Procurement and Disposal of Public Assets Authority (PPDA) and the finance ministry convening a high-level Procurement Cadre Forum.

The one-day forum, scheduled for Thursday, May 7, 2026, at Speke Resort Munyonyo in Kampala, comes at a time when the Government has earmarked over shillings 7.2 trillion in the 2025/26 financial year for infrastructure development across energy, transport, health, education, and ICT sectors.

Of this, shillings 1.4 trillion has been allocated to the Greater Kampala Metropolitan Area, underscoring the scale and strategic importance of ongoing investments.

Officials say the effectiveness of this expenditure will hinge not just on funding levels, but on how efficiently procurement systems translate budgets into tangible projects and services.

The Permanent Secretary at the Finance Ministry, Ramathan Ggoobi, and PPDA executive director Benson Turamye are expected to lead the discussions, which will bring together 372 Heads of Procurement and Disposal Units (HPDUs) from central and local government entities.

The forum is aimed at accelerating reforms and improving service delivery and is also designed as a platform to align procurement practitioners with government reform priorities while addressing longstanding bottlenecks that have slowed project execution.

Participants will examine how agencies are implementing key policy shifts, including the promotion of local content, increased participation of domestic contractors, and the inclusion of special interest groups such as women, youth, and persons with disabilities.

Sustainable procurement practices, aimed at minimising environmental impact, will also feature prominently on the agenda, reflecting a broader push to integrate green considerations into public spending.

Despite these reforms, procurement performance has continued to face structural challenges. Officials cite prolonged procurement cycles that delay the rollout of critical infrastructure projects, as well as administrative inefficiencies characterised by overlapping approval processes.

There are also concerns about gaps between policy formulation and on-the-ground implementation, limited ownership of reforms among frontline officers, and weak feedback systems needed to continuously refine procurement processes.

The forum is expected to generate practical recommendations to streamline procedures, enhance accountability, and ensure that procurement officers play a more proactive role in delivering national development goals.

Uganda’s long-term blueprint, Vision 2040, places infrastructure development at the heart of economic transformation.

However, analysts note that without efficient procurement systems, even well-funded projects risk delays, cost overruns, and suboptimal outcomes.

Billions Lost in the Shadows

At the core of Uganda’s crisis, public procurement, consuming over 60% of the national budget, loses approximately sh614 billion ($165 million) annually to corruption, underscoring that transparency is not a luxury but an urgent necessity.

According to a 2021 study by the Inspectorate of Government (IGG), this leakage primarily arises from contracts awarded to ghost companies, deliberate cost inflation, and unjustified amendments that balloon project costs.

A 2020 survey by the Public Procurement and Disposal of Public Assets Authority (PPDA) revealed that 21% of suppliers confessed to paying bribes, with the average kickback amounting to 7.1% of contract values, nearly five times the global average of 1.5%.

This highlights Uganda’s outlier status in procurement malfeasance and the urgent need for systemic reforms.