government 27 May 2026 The Observer (Uganda)
Districts Urged to Leverage Procurement for Economic Inclusion
Ugandan local governments are being directed to utilize public procurement strategically to create jobs and foster business growth for youth, women, and persons with disabilities. Officials emphasize that procurement should serve as a tool for economic inclusion, not just administrative purchasing. Source: https://observer.ug/news/districts-told-to-open-contracts
Local government authorities across Uganda are being encouraged by the Ministry of Local Government to implement public procurement more intentionally. The aim is to channel spending towards creating employment opportunities and expanding business prospects specifically for youth, women, and persons with disabilities. This initiative is part of a broader effort to ensure that district and municipal spending contributes more significantly to economic inclusion.
Recent regional workshops organized by the ministry brought together key procurement and accounting officials to deepen their understanding of reservation and preference schemes mandated by the Public Procurement and Disposal of Public Assets Act. The core question addressed was how government expenditures at the district level can translate into broader economic benefits for communities often excluded from securing public contracts.
Officials stressed that public procurement should be viewed beyond its transactional nature of acquiring goods and services. Instead, it should be actively employed as a policy instrument to bolster local businesses, generate employment, and distribute economic opportunities more equitably within communities. With over 60% of local government budgets disbursed through procurement, the potential impact on local economies is substantial.
Under existing PPDA regulations, a minimum of 15% of procurement opportunities at the local government level are designated for enterprises owned by youth, women, and persons with disabilities. This policy seeks to reduce barriers to entry for these groups, who often face challenges related to financing, experience, and administrative requirements.
While these reservation schemes are legally established, the ministry noted concerns about inconsistent implementation in some districts. Procurement plans are sometimes developed without explicitly incorporating these target groups, leading to a disparity between legal eligibility and practical access for businesses owned by women, youth, and persons with disabilities. Ensuring effective implementation is crucial for realizing the policy’s goals of fostering greater economic participation.