The United Republic of Tanzania



12 Jun, 2024
New Public Procurement Law to Take Effect on June 17, 2024
New Public Procurement Law to Take Effect on June 17, 2024

By: Joseph Muhozi, Dodoma

The Minister of Finance, Dr. Mwigulu Nchemba, has officially announced that the Public Procurement Act No. 10 of 2023 will come into effect on June 17, 2024.

This announcement follows Government Notice No. 455, dated June 7, 2024, and published in Government Gazette No. 13 Vol. 105 on the same date. The selection of this date is in accordance with Section 1 of the new law.

In September 2023, the Parliament of the United Republic of Tanzania passed the bill for the new public procurement law. This legislative milestone allowed the Government to finalize the necessary procedures, leading to its signing by President Samia Suluhu Hassan, and subsequent publication by the Minister responsible in the Government Gazette.

Highlighting some of the key changes introduced by the new law the Director General of the Public Procurement Regulatory Authority (PPRA), Eliakim Maswi emphasized the increased preference for local bidders and locally produced or extracted goods.

Mr. Maswi made these remarks during a presentation at a recent training session for Members of Parliament in Dodoma.

Furthermore, the Director General noted that the new law reduces the time required for public procurement processes, enhances the conditions for using the 'Force Account' method by setting a threshold, grants PPRA the authority to set price caps, and mandates the use of the National e-Procurement System of Tanzania (NeST) for all procurement processes.

“The NeST system will significantly enhance efficiency and compliance, ensuring optimal value for public funds. I urge Members of Parliament to promote the use of the NeST system among Tanzanians and to dismiss any attempts to avoid its use for personal gain,” Mr. Maswi stated.

He also mentioned that PPRA continues to provide training on the NeST system for bidders and procuring entities, and that training on the new law will commence after July 1, 2024.