PUBLIC PROCUREMENT REFORMS: AN ANALYSIS OF EXAMPLES FROM THE AFRICAN REGION Dr. Sope Williams-Elegbe...
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Transcript of PUBLIC PROCUREMENT REFORMS: AN ANALYSIS OF EXAMPLES FROM THE AFRICAN REGION Dr. Sope Williams-Elegbe...
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
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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 [email protected]