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Public Procurement in Tanzania

Public procurement in Tanzania plays a central role in national development, public service delivery, and infrastructure expansion. As a lower middle-income economy in Sub-Saharan Africa, Tanzania uses public procurement as a key policy instrument to support economic growth, local industry development, social inclusion, and service delivery across central and local government levels.

The procurement system is regulated under a comprehensive legal and institutional framework and is supported by a national electronic procurement platform. While procurement execution is decentralized to individual procuring entities, strong regulatory oversight and audit mechanisms ensure transparency, competition, and accountability.

Country & Economic Overview

International Memberships

• African Development Bank (AfDB)
• East African Development Bank (EADB)
• International Fund for Agricultural Development (IFAD)
• International Monetary Fund (IMF)
• United Nations Conference on Trade and Development (UNCTAD)
• World Trade Organization (WTO)

World Bank Country Page: http://www.worldbank.org/en/country/tanzania

Public Procurement Institutional Framework

• Public Procurement Regulatory Authority (PPRA): Responsible for regulation, oversight, compliance monitoring, procurement audits, and capacity development

Although PPRA is designated as the national regulatory authority, procurement operations are decentralized. Each procuring entity conducts its own procurement in accordance with national laws, regulations, and standard tender documents.

Official Website: https://ppra.go.tz/

Central Purchasing Arrangements

Tanzania does not operate a centralized purchasing body. All procurement activities are conducted independently by individual procuring entities at national and sub-national levels.

Legal & Regulatory Framework

Public procurement in Tanzania is governed by national legislation supported by detailed regulations and standard bidding documents.

• The Public Procurement Act (Cap. 410)
• The Public Procurement Regulations, 2013 (as amended)

Primary Legal Source:

• https://www.ppra.go.tz/uploads/documents/en-1675173481-The%20Public%20Procurement%20Act%20RE%202022.pdf

Procurement Procedures & Thresholds

• Tender Thresholds: Defined under Schedules 7 and 11 of the Public Procurement Act
• Advertisement Periods: Governed by Section 69 and Schedule 8
• Direct Contracting: Thresholds defined under Schedule 7
• Contract Award Disclosure: All contract awards are publicly disclosed

E-Procurement Environment

Tanzania operates a fully integrated national electronic procurement platform.

• National e-Procurement System of Tanzania (NeST): https://www.nest.go.tz

• Launched in 2018
• Supports end-to-end electronic procurement including tendering, evaluation, contract management, reverse auctions, catalogues, and complaints
• Government-managed system using a Commercial Off-the-Shelf solution (EUROPEAN DYNAMICS e-PPS)
• Supported and used by the World Bank under MDB e-Government Procurement Guidelines
• Supported currencies include Tanzanian Shilling, US Dollar, and Euro

Transparency, Statistics & Reporting

• Mandatory electronic publication of tenders and contract awards
• Regular procurement audits conducted by PPRA
• Annual reports published by sector authorities

Sample Annual Report: https://www.ewura.go.tz/wp-content/uploads/2022/05/Annual-Report-For-the-Year-Ended-30th-June-2021.pdf

Sustainability & Green Public Procurement

• No standalone national green public procurement strategy
• Environmental and social considerations embedded in procurement regulations and standard tender documents
• Green procurement practices applied in transport, water, sanitation, and waste sectors
• Monitoring conducted through procurement audits led by PPRA

Social & Ethical Considerations

• Set-aside mechanisms allocating 30% of annual procurement to special groups, including women-owned businesses
• Legal provisions supporting participation of disadvantaged groups
• Mandatory compliance with labor standards, including child protection and safeguards for vulnerable persons
• Domestic preference margins of up to 15% for locally manufactured goods

Practical Considerations for Suppliers

• Mandatory registration on the NeST platform
• Registration, annual usage, and bid submission fees apply
• Understanding domestic preference and set-aside rules is essential
• Procurement audits and compliance reviews are strictly enforced

Public Procurement in Tanzania is characterized by a strong regulatory framework, expanding use of electronic procurement, and increasing integration of social and sustainability objectives. For suppliers and development partners, successful participation requires compliance with the legal framework, familiarity with NeST operations, and adherence to PPRA regulations.