The government will begin implementing local content preference in the National e-Procurement System of Tanzania (NeST) starting July 2025, as part of broader efforts to empower Tanzanian-owned businesses and increase their participation in public procurement.
This was disclosed in Parliament by the Deputy Minister for Finance, Mr. Hamad Hassan Chande, while responding to a question from Special Seats MP Dr. Ritta Enespher Kabati, who sought clarity on how the government plans to support local companies by awarding them tenders worth Sh50 billion, as permitted under the country’s procurement laws.
Mr. Chande said the development team overseeing the NeST system is finalizing procedures for operationalizing the preferential treatment clause for local suppliers, in accordance with provisions set out in the Public Procurement Act.
“The NeST platform categorizes suppliers, and a company will be recognized as a local firm if it is registered in Tanzania and either fully owned by Tanzanian citizens or if Tanzanians hold not less than 51 percent of its shareholding,” said Mr. Chande.
He cited Section 57 of the Public Procurement Act No. 10 of 2023, and Regulation 45 of the Public Procurement Regulations of 2024, which provide for the reservation of procurement opportunities valued up to Sh50 billion exclusively for Tanzanian nationals and locally registered firms.
In addition, Mr. Chande pointed to Section 61 of the Act, which allows individuals or entities that may not meet certain technical or financial thresholds to form joint ventures or consortia, with the objective of enhancing their capacity to deliver on public contracts.
The NeST system, designed to bring greater efficiency, transparency, and accountability in government procurement, is expected to play a critical role in advancing economic inclusion by promoting local content and stimulating growth of indigenous enterprises.
The move is in line with the government’s broader industrialization agenda, aimed at strengthening domestic value chains and ensuring that public spending contributes directly to national economic development.
