The government is reviewing the Public Procurement Act, Cap 410, in a move aimed at giving local businesses greater access to public contracts, boosting domestic production and ensuring more public spending benefits the country's economy.
The proposed reforms are expected to address legal and operational barriers that have limited local companies from fully participating in government procurement, while strengthening opportunities for manufacturers, small and medium-sized enterprises, contractors and service providers.
Acting Commissioner for Public Procurement Policy in the Ministry of Finance, Mr Alex Haraba, said public procurement should be used not only to acquire goods and services but also as an instrument for stimulating economic growth, creating jobs and expanding opportunities for Tanzanian businesses.
He was speaking during a stakeholders' meeting in Dar es Salaam organised to collect views and recommendations on the review of the law.
"Public procurement has a significant role because it is one of the ways through which the government can stimulate domestic production, promote businesses, create jobs and expand economic opportunities for citizens," he said.
The review comes as Tanzania seeks to build a competitive, inclusive and resilient economy under Development Vision 2050, with a greater role for the private sector in driving investment, production and employment.
Mr Haraba said government purchasing decisions had considerable potential to strengthen local industries, provided domestic companies could compete effectively and benefit from opportunities created by public expenditure.
This makes the implementation of procurement preferences, access to tenders and the participation of local firms in major government contracts central issues in the ongoing review.
Under the existing framework, the Public Procurement Act, Cap 410, 2023 edition, and the Public Procurement Regulations 2024 contain provisions intended to promote local participation.
These include national and exclusive preference arrangements for local suppliers, preferential treatment for goods manufactured in Tanzania, and opportunities for domestic companies to participate in contract implementation through joint ventures and subcontracting.
However, Mr Haraba said the government wanted to establish whether these provisions were delivering the intended benefits to local manufacturers, suppliers, contractors and service providers.
He said consultations were necessary to identify challenges preventing businesses from taking advantage of the opportunities available under the current procurement framework.
"It is important to listen to stakeholders' experiences, identify legal and operational challenges and obtain recommendations for improving the existing framework to increase local participation, promote domestic businesses and strengthen fair competition in public procurement," he said.
For local businesses, the effectiveness of procurement reforms will largely depend on whether changes in the law translate into better access to tenders, fairer competition and more opportunities to supply goods and services to public institutions.
The consultations are expected to examine how the government can expand participation by local companies, improve opportunities for small and medium-sized enterprises and strengthen the implementation of preference arrangements.
Stakeholders will also discuss joint ventures, subcontracting and ways of removing unnecessary administrative and procedural barriers in tendering processes.
Mr Haraba said the recommendations would help the government shape amendments to the law, regulations, guidelines and other directives governing public procurement and supply chain management.
The government has also established a broader policy foundation for improving supply chain management through the National Supply Chain Management Policy 2025 and its implementation strategy covering the 2025-2035 period.
He said the objective was to develop a procurement system that supports private sector participation while ensuring transparency, efficiency, fair competition and value for money.
"We believe that a good public procurement and supply chain system provides a strong foundation based on transparency, efficiency, fair competition, value for money and the proper use of domestic resources, while supporting the objectives of Vision 2050," he said.
The review is particularly significant given the role government procurement can play in creating a reliable market for locally manufactured products and services.
Greater participation by domestic businesses could help retain more economic value within the country, support industrial growth and expand employment opportunities, although the benefits will depend on how effectively the revised provisions are implemented.
Meanwhile, German Development Cooperation (GIZ) adviser in Tanzania, Ms Umehani Khetri, whose organisation is supporting some of the stakeholder consultations, said public procurement was an important component of national development.
She commended the government for bringing together different stakeholders to contribute to the review, saying their participation would promote transparency and strengthen inclusive decision-making.
The consultations are expected to provide the government with practical recommendations on how to improve the procurement environment and ensure that public spending contributes more effectively to domestic economic growth.