The government has saved an estimated TZS27.64 billion through the use of the National e-Procurement System of Tanzania (NeST), which has reduced the need to print and physically deliver tender documents, the Public Procurement Regulatory Authority (PPRA) has said.
PPRA Director General Denis Simba said yesterday that the electronic procurement system had prevented the printing of more than 288.6 million sheets of tender documents, cutting costs for both procuring entities and businesses participating in public tenders.
Mr Simba made the remarks in Dodoma while briefing journalists on PPRA’s performance during the 2025/26 financial year and its priorities for 2026/27.
“Use of the NeST system has enabled us to prevent the printing of more than 288.6 million sheets of tender documents, equivalent to savings of about TZS27.64 billion,” he said.
He said NeST had also reduced the time and costs incurred by suppliers by allowing them to access and apply for tenders electronically without travelling to the offices of procuring institutions.
Through the system, bidders can participate in procurement processes from anywhere using digital devices, including smartphones, while receiving tender information electronically.
Mr Simba said the system had also strengthened transparency and efficiency in public procurement, noting that NeST had been integrated with more than 30 systems, including banking and payment platforms, social security systems, professional registration boards and licensing systems.
The digital system has also been linked to improved compliance with public procurement laws. According to Mr Simba, compliance increased from 65 per cent in 2023/24 to 76 per cent in 2024/25, before reaching 79 per cent in 2025/26.
Mr Simba said NeST had helped strengthen the implementation of measures designed to give Tanzanian businesses greater access to government procurement opportunities.
He said tenders valued at up to TZS50 billion are reserved for local suppliers, while domestic bidders can receive a preference of up to 10 per cent in internationally competitive tenders.
“This is intended to ensure that public procurement contributes more directly to the growth of local businesses and the wider economy,” he said.
PPRA has also recorded increased participation by special groups through the system. Mr Simba said 27,996 special groups had registered on NeST, comprising 13,317 youth groups, 14,400 women’s groups, 643 groups of older people and 586 groups of people with disabilities.
The groups have secured tenders worth a combined TZS56 billion, highlighting the role of public procurement in opening business and employment opportunities to groups that have traditionally faced barriers in accessing government contracts.
PPRA is targeting to increase the number of special groups capable of participating in public tenders to 300,000 by 2050.
Chairperson of Kazi Iendelee Group, Elizabeth Kasinga, said her organisation had secured 21 government tenders worth TZS2.1966 billion from various ministries.
She said the contracts had helped create employment opportunities for more than 450 young people, urging Tanzanians to make greater use of NeST to compete for government business opportunities.
The expansion of electronic procurement is expected to make public tendering more accessible while reducing paperwork, transaction costs and the need for physical movement of documents.
For taxpayers and businesses, the shift also presents an opportunity for public procurement to become more transparent, competitive and efficient, while ensuring that a greater share of government spending supports local enterprises and employment.
