The Public Procurement Regulatory Authority (PPRA) has unveiled the National e-Procurement System of Tanzania (NeST), a groundbreaking electronic platform poised to usher in a new era of transparency and efficiency in the country's public procurement process.
NeST is a comprehensive electronic system that will streamline various facets of procurement, including e-registration, e-tendering, e-contract management, e-catalogue, and e-auction. With its introduction, Tanzania is set to witness a major transformation in public procurement practices.
Public procurement plays a vital role in Tanzania's economy, contributing significantly to the National Gross Domestic Product (GDP). A substantial portion of the government budget is allocated to public procurement, excluding the salary budget and national debt servicing.
The legal framework governing public procurement in the country is the Public Procurement Act, Chapter 410. This legislation established the PPRA with the primary objective of ensuring that the public procurement system in Tanzania is characterized by fairness, competitiveness, transparency, and value for money.
During a meeting with editors in Dar es Salaam, Eliakim Maswi, the Chief Executive Officer of PPRA, highlighted the pivotal role of NeST in enhancing the procurement landscape. He emphasized that one of the significant advantages of NeST is its capacity to provide information essential for informed decision-making.
The existing Tanzania National e-Procurement system (TANePS) lacks the data processing capabilities of NeST, making the latter a much-needed upgrade. NeST is designed to be user-friendly, guiding users through all the steps required to perform their intended tasks seamlessly.
Moreover, NeST is set to be accessible through a mobile application, ensuring that a wide range of users, including those without extensive training, can utilize it effectively. This accessibility is expected to increase bidder participation and enhance transparency in public procurement, ultimately enabling the government to procure goods and services at competitive market prices.
Maswi explained, "To ensure quality services, the system has the capability to register and approve bidders who meet specific location-based criteria for their businesses."
In addition to improving transparency, the NeST system is anticipated to reduce the vulnerabilities to corruption that exist in the current system. Maswi noted that the current system allows bidders to influence decisions made by relevant bodies, such as Procurement Units, Tender Boards, and responsible officials. In contrast, the NeST system will rely on objective criteria processed by the system, eliminating discretion in decision-making.
Since the launch of training for NeST users, a remarkable 653 Procurement Institutions, represented by 6,262 participants, have been trained to navigate the new procurement system. Additionally, 1,508 bidders have received training in various centers coordinated by PPRA, with training now available at the Mkwawa University center in Iringa Region.
Maswi also emphasized that September 30th, 2023, marks the end of TANePS, which was introduced in the 2015/16 fiscal year. The TANePS system, owned and operated by the Greek company European Dynamics, will conclude its contract on December 31st of this year. In contrast, NeST is a government-owned system designed and built by local experts, further showcasing Tanzania's commitment to enhancing its public procurement processes.