PUBLIC PROCUREMENT REFORMS: AN ANALYSIS OF

EXAMPLES FROM THE AFRICAN REGION

Dr. Sope Williams-ElegbeDeputy Director, African Public

Procurement Regulation Research Unit & Research Fellow, Stellenbosch University.

Senior Lecturer in Law, University of Lagos.

Every time you spend money, you are casting a vote for the kind of world

you want you and your children to live in. Your

procurement spend determines the quality of

your children’s lives in Nigeria.

OVERVIEW OF PRESENTATION

IntroductionWhat Does Procurement Reform Look Like?What Should Procurement Reforms Achieve?Country Perspectives of Procurement ReformsCross-Country ChallengesRegional Initiatives in Procurement ReformsThe Future of Procurement Reform in AfricaConclusion

3

1990s

1995

1999

Procurement

reforms began

Donor action

against corruption

Procurement

market size

accounts for c.20%

of GDP

1998

1st African Public

Procurement

Conference

(Abidjan)

INTRODUCTION

WHAT DOES PROCUREMENT REFORM LOOK LIKE?

Reform in Africa differs significantly from the West and should be home-grown to meet domestic needs.

AfDB indicates that reform in Africa should consist of:adequate legal & policy framework; defined institutional arrangements; a professional civil service;adequate resources & laws that prevent corruption;increased transparency and the inclusion of civil

society.

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WHAT DOES PROCUREMENT REFORM LOOK LIKE? (2)

6

UNCITRAL MODEL LAW

CONSTITUTIONAL PROVISIONS

Overs

igh

t In

stitu

tion

s

Rem

ed

ies

Syste

m

Cap

acity

Bu

ildin

g

WHAT SHOULD PROCUREMENT REFORMS ACHIEVE?

7

Corruption Free

Transparency Accountability

Fit-for-purpose

Proper Resource

Management

Achieve Developmental Outcomes

COUNTRY PERSPECTIVESPre-reform Challenges: incoherent; irregularities; political interference.

Mid-1990s: PFM reforms included procurement.

1999: Public procurement oversight group created.

2003: Public Procurement Act passed.

Creation of new institutions.

New procurement processes.8

Ghana

Pre-reform Challenges: multiplicity of regulation, incoherence, irregularities, no enforcement or oversight.

2001: Public Procurement Regulations passed.

2005–2007: Public Procurement & Disposal Act passed and entered into force.

Stringent anti-corruption provisions- public official repays losses!

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Kenya

COUNTRY PERSPECTIVES (2)

Pre-reform Challenges: procurement used to entrench status quo; lacked transparency.

1652–1910: Procurement regulated since the Dutch settlement in the Cape.

1995-1997: Interim 10 point plan and Green Paper to use procurement to democratize the economy.

2003: National Procurement Policy developed

2013: Office of the Chief Procurement Officer was created.

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South Africa

COUNTRY PERSPECTIVES (3)

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COUNTRY PERSPECTIVES (4)Country Nigeria Ghana Kenya South Africa

Law UNCITRAL UNCITRAL UNCITRAL Multiple legislation, (not UNCITRAL)

Oversight institution

Bureau of Public Procurement

Public Procurement Board

Public Procurement Oversight Authority

Office of Chief Procurement Officer

Mandatory procedures

Yes Yes Yes Yes

Preferences and local content

Yes Yes Yes Yes

Capacity requirements

BPP Certification BSc & HND in SCM etc

NA BSc & HND in SCM etc

Administrative review

PE & BPP PE & PPB PE & PARB PE & NT

Constitutional provisions on procurement

No No Yes Yes

CROSS-COUNTRY CHALLENGES

Capacity

Non-compliance

Inadequate enforceme

nt

Inadequate informatio

n

Lack of commitme

nt

Regulators resources

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Abidjan, Cameroon

1998: The 1st regional examination of procurement in Africa

Attendance: 30 countries

Achievement: Consensus on the importance of public procurement for the promotion of good governance.

REGIONAL INITIATIVES: “The Abidjan Consensus”

Tunis, Tunisia

2009: High Level Conference on Public Procurement Reform.

Attendance: 45 countries

Achievement: Consolidate reforms and promote multi-sector participatory approach.

REGIONAL INITIATIVES: “The Tunis Approach”

West African Economic & Monetary Union

1994: WAEMU was created.(8 member franco-phone West African countries)

2000: Regional Public Procurement Enhancement Project was approved.

2005(i): WAEMU Directive on attribution, executionand payment of public procurement contracts.

2005(ii): WAEMU Directive on the control and regulation of public procurement.

2007: WAEMU countries enacted new procurement legislation.

REGIONAL INITIATIVES: WAEMU

Common Market for Eastern and Southern Africa1994: COMESA was created.

(19 member countries)

1998: Procurement harmonisation began.

2003: Principles based procurement directives.

2009: Procurement regulations to open members’ procurement markets to member suppliers.

COMESA is Africa’s largest economic zone with an estimated annual public procurement market of US$50 billion.

REGIONAL INITIATIVES: COMESA

Community WAEMU COMESA

Objective Regional integration Regional integration

Approach Equivalence with WAEMU directives

Principles based adherence

Preferences Yes Yes- mandatory

Regional oversight mechanism

Yes – Public procurement observatory

No

Regional review mechanism

Yes (proposed) No

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REGIONAL INITIATIVES: WAEMU vs. COMESA

THE FUTURE OF PROCUREMENT REFORM IN AFRICA

• The future of procurement in Africa is bright and regional.

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THE FUTURE OF PROCUREMENT REFORM IN AFRICA

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PROCUREMENT HARMONISATIO

N

Economic developme

nt

National and

regional industries

Govt. spending multiplier

effect

Trade facilitation

Market deepening

Capacity building

Procurement systems developme

nt

CHALLENGES TO REGIONAL HARMONIZATION

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Is it a priority?Funding

Which model works best?

Power Plays

Early stage of procurement development & tied aid

SOME LESSONS FROM OTHER JURISDICTIONS

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Top-Down

Approach

i.e. through the AU

Bottom-Up

Approach

i.e. through regional trading

communities

Collaborative Engagement

Support from LGs,

States, Regional

Govts

Enhance Supplier Capacity

Transparent Opportuniti

es

THANK YOUsopewe@sun.ac.za