The Tanzanian government saved over Sh13.3 billion during the 2023/24 financial year following a full-scale shift from paper-based tendering to the National e-Procurement System of Tanzania (NeST), a major digital reform that has redefined public procurement efficiency and accountability.
The Public Procurement Regulatory Authority (PPRA) attributes the savings, equivalent to $4.93 million to the elimination of costs related to physical paperwork, such as printing, transport, and document storage, which previously burdened the government’s procurement processes.
PPRA Director General Dennis Kwame Simba said during a recent stakeholders’ forum that the digital transformation has gone beyond cost-cutting.
“In the 2023/24 financial year alone, preliminary assessments show that the use of NeST has significantly cut down procurement processing time by allowing procuring entities to access bidders’ information more efficiently,” he noted.
NeST was launched officially on September 9, 2024, by Deputy Prime Minister and Minister for Energy Dr. Doto Biteko. Its nationwide rollout had begun earlier on July 1, 2023, replacing the Tanzania National e-Procurement System (TANePS), which had faced several operational and structural challenges.
Managed by PPRA under the Ministry of Finance, the NeST platform was built with a mission to foster transparency, promote accountability, and deliver efficiency in public procurement through technological innovation.
The system, developed from July 2022, comprises six modules: e-Registration, e-Tendering, e-Contract, e-Payment, e-Catalogue/e-Market Place, and e-Auction.
As of early 2025, the e-Registration and e-Tendering modules are fully functional, while pilot testing of the e-Contract and e-Payment components is underway.
Full implementation is anticipated by April 2025. The remaining modules, e-Catalogue and e-Auction, are scheduled for development in the 2025/26 financial year.
The results of this digital evolution are already apparent. Besides the fiscal gains, the shift to NeST has also contributed to a 617.85-metric tonne reduction in carbon emissions—a clear environmental gain linked to reduced paper usage and logistics-related pollution.
So far, 34,678 bidders have been registered on the platform, including 33,114 domestic firms and 1,564 international vendors.
On the procurement side, 57,993 entities are now on the system, comprising 1,215 central and delegated government institutions and a vast 56,778 local government units.
The system hosts a total of 117,900 users, with 53,584 designated as vendor supervisors.
NeST’s integration with over 20 government platforms, such as tax and business registries, allows seamless verification and data sharing, eliminating duplication and fraud risks.
Additionally, a mobile application has been developed to increase accessibility for grassroots-level institutions, including schools, health centers, and village offices, bridging the digital gap for remote users.
Despite these advances, challenges persist. Simba acknowledged that some local government authorities face limitations in ICT infrastructure, lack of skilled human resources, and insufficient user knowledge.
“We still observe knowledge gaps and poor internet connectivity in some remote areas, which affect the full usability of the system,” he explained.
In response, the government, through a partnership with the Universal Communications Service Access Fund (UCSAF) and telecom companies, is working to expand internet coverage.
Integration with the President’s Office - Regional Administration and Local Government (PO-RALG) network now enables direct system access for local authorities.
To sustain momentum, 368 champions have been trained and deployed in every local council to offer real-time support. PPRA is also intensifying efforts to build the capacity of procurement professionals and system developers through continuous training in emerging technologies and ethical practices.
Looking ahead, the 2025/26 fiscal year will see the development of the e-Auction and e-Catalogue modules begin.
The Authority also plans to finalise studies on price caps for select goods and contract price adjustment formulas.
Another upcoming initiative is the establishment of a ‘Procurement Situation Room’—a real-time monitoring hub to enhance oversight of tendering and contract implementation processes.
PPRA believes these measures will not only reinforce compliance with procurement regulations but also curb financial leakages caused by inefficiencies or irregularities.
“Our long-term goal is to ensure value for money in every procurement process conducted by public institutions,” Simba emphasised.
As Tanzania positions itself as a regional leader in digital governance, the NeST system stands as a model of how public sector transformation can bring tangible financial, operational, and environmental benefits.