Uganda's Ambitious Economic Growth Stalled by Procurement Woes

Uganda’s aspiration to achieve a tenfold increase in its economy, targeting $500 billion, faces a critical hurdle: the country’s public procurement system. Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, has warned that unless urgent reforms addressing widespread inefficiencies, corruption, and significant delays are implemented, this ambitious economic growth may remain out of reach.

Speaking at the 2026 Public Procurement Cadre Forum, Ggoobi emphasized that effective project execution, rather than policy documents, is the true driver of economic transformation. He described procurement as the “engine of development execution” and a vital strategic tool for industrialization, infrastructure development, and private sector growth, urging a shift away from viewing it as a mere compliance exercise.

However, the current procurement landscape is marred by bureaucracy, poor contract management, and corruption. Ggoobi cited the World Bank’s assessment that Uganda is among the worst countries globally for project delays, a stark contrast to the “tenfold growth spirit.” He also highlighted cost overruns and fragmented systems as major drains on taxpayer funds and deterrents to investor confidence.

Inefficiencies are attributed to the infiltration of non-professionals and an excessive number of middlemen within the procurement system. Ggoobi expressed frustration over the delayed rollout of the Electronic Government Procurement System, which itself has become a victim of the very delays it was designed to solve. The government has set a deadline of July for the Accountant General’s office to ensure all government entities are on this system.

Benson Turamye, Executive Director of the Public Procurement and Disposal of Public Assets Authority (PPDA), underscored the significance of procurement reforms, noting that public procurement constitutes nearly 65% of government expenditure and 18-20% of GDP. A draft law to regulate procurement professionals is in the works, aiming to define qualifications and sanctions for misconduct, similar to other regulated professions.

The forum also brought to light the severe impact of delayed government payments on local contractors. Kiara Binta Nkuranga, President of the Uganda National Association of Builders, Suppliers and Engineering Contractors (UNABSEC), stated that members are facing financial ruin, losing properties, and even dying due to mounting debts from unpaid government dues, with some contractors owed millions of dollars.

Procurement practitioners also called for stronger legal protection against political interference and conflicting directives from oversight bodies, arguing that delays are often due to poor planning and political meddling rather than procurement officers’ errors. Concerns were raised about overlapping investigations and contradictory instructions from agencies like the State House Anti-Corruption Unit and the Inspectorate of Government, which further complicate and delay processes.

This article was originally reported by the Daily Monitor (Uganda).