Companies and individuals not registered on the government’s electronic procurement platform will no longer be eligible to bid for public contracts as the government accelerates the rollout of its digital procurement system across public entities.
The shift to the Electronic Government Procurement (eGP 2.0) platform is expected to eliminate manual paper-based procurement, reduce procurement timelines and curb opportunities for corruption by moving the entire process online.
Under the new system, suppliers will submit bids, receive notifications, sign contracts and complete procurement transactions electronically from any location with Internet access.
Speaking on Monday, the Acting Accountant General in the Ministry of Finance, Planning and Economic Development, Mr Godfrey Ssemugooma, said registration on the platform is now mandatory for all firms seeking government business.
Warning
‘Suppliers who are not enrolled on the electronic platform will automatically be kicked out of government,’ Mr Ssemugooma said, urging all prospective contractors to register on the system.
He said the digital platform will replace manual procedures that have long characterised public procurement, including newspaper advertisements, physical submission of bid documents, in-person bid openings.
‘Currently the accounting officers are publishing tenders in the newspapers, issuing and receiving bid documents manually, doing bid opening in person, and signing contracts manually. All these processes are going to be electronic,’ he said.
According to Mr Ssemugooma, the reforms will reduce procurement timelines by as much as half, with some processes expected to fall from 10 days to five days, while also cutting administrative costs and eliminating opportunities for bid document tampering.
He added that the system is integrated with the Uganda Revenue Authority (URA), Uganda Registration Services Bureau (URSB), National Identification and Registration Authority (NIRA) and the National Social Security Fund (NSSF), allowing automatic verification of suppliers’ compliance records. ‘This automation will minimise human contact.
All suppliers not on the system will not be able to work with the government. In the manual environment, people could attach forged documents, but in the electronic system, submission is done at once,’ he said.
However, Mr Ssemugooma acknowledged that the success of the reforms will depend on continued investment in internet connectivity, computer infrastructure, cybersecurity and data protection.
The Ministry of Finance and the Public Procurement and Disposal of Public Assets Authority (PPDA) rolled out eGP 2.0 to another 100 public entities on July 20, bringing the total number of institutions using the platform to 136.
The latest phase covers 46 government agencies, eight cities, nine districts, two ministries, seven municipal councils, 12 public universities and 16 regional referral hospitals, among other institutions.
Government plans to onboard at least 100 public entities every financial year, with the goal of migrating all 441 procuring and disposing entities to the electronic platform by 2029.
Manual system blamed for delays
For years, suppliers have been required to print bulky bid documents, transport them physically to procuring entities, attend bid openings in person and follow lengthy approval procedures involving multiple offices before contracts could be awarded. Officials say the process increased costs and delayed service delivery.
Ms Hermieon Nakabugo of the Capital Markets Authority said the manual system was particularly inefficient for urgent procurements. She explained that procurement requests had to pass through user departments, procurement and disposal units, procurement committees, evaluation committees and accounting officers before a contract could be awarded.
‘In some cases the procurement could take a minimum of six weeks, which is a long time, especially if the procurement is urgent,’ she said.
Greater transparency
PPDA officials say the electronic system will improve transparency by giving suppliers automated updates throughout the procurement process.
Ms Mariam Baluka, the senior officer for procurement and disposal capacity building at PPDA, said the platform would make procurement more open and predictable.
‘Now we don’t have to print procurement plans, bid documents, or evaluation committee paperwork; we shall not be getting complaints from suppliers on why their bids are not successful,’ she said.
She added that public entities already migrated to the system are no longer permitted to advertise tenders in newspapers.
‘The entities rolled out to the digital systems are not allowed to advertise in the newspapers. Bidders interested in doing business are urged to register on the system, advertise on the system, and submit,’ Ms Baluka said.