To address concerns and streamline processes in government procurement, Rwanda unveiled a series of comprehensive reforms to its public procurement laws.
Led by the Rwanda Public Procurement Authority (RPPA), the revisions aim to enhance transparency, foster economic participation, and combat corruption in the procurement process.
Joyeuse Uwingeneye, Director General of RPPA, announced the overhaul, where she highlighted the need for changes, citing challenges encountered during previous implementations and the imperative to align with national policies.
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Among the key updates is the adjustment of fee structures across various sectors. Consultancy market fees have been significantly raised from 10 million to 50 million Rwandan francs, while the procurements of goods and supplies see an increase from 50 million to 100 million Rwandan francs. Notably, non-consultancy service markets now emphasise the importance of knowledgeable staff over specific fee requirements.
To promote domestic participation, Rwandan companies are granted fixed quotas in certain markets, provided their pricing remains competitive with foreign competitors. This move seeks to bolster local businesses and stimulate economic activity within the country.
"If a Rwandan company competes in a market at a price higher than that of a foreign company, it is not automatically disqualified as long as the difference is not more than 15%. A Rwandan company is granted a fixed quota if the price difference does not exceed 15% in goods markets, consultancy, and it does not request consultancy at 10% in labour markets."
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Moreover, the reforms aim to diversify market participants. Cooperatives, individuals, and professional bodies are encouraged to engage in government markets, with university lecturers receiving capacity-building opportunities to compete alongside research markets.
"To enhance the capacity of other competitors who are not companies but cooperatives or individuals, a provision was made for university lecturers to be given capacity-building opportunities to compete in markets alongside the research market."
Uwingeneye said that in a bid to expedite market entry, the issuance of trading licenses has been streamlined. Licenses will now be granted within six to 24 months, depending on market size, facilitating smoother market access for traders and efficient government oversight.
"For all markets that reach one hundred million Rwandan francs, it will take six months, and for five billion Rwandan francs market, this period was extended to between 12 and 24 months, and this was done to assist both the government and traders."
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Additional measures have been implemented to combat contract manipulation and ensure timely payment to workers. Companies found in violation of regulations may face penalties such as exclusion from public markets for up to one year and substitute fines.
"The contractor has 45 days to complete the payment if this time is surpassed, the company that issued the tender will deduct the amount that was supposed to be paid to the employees and make the payment themselves," she said.
"For business owners that buy things but don't pay for the suppliers, this is also carried out for the suppliers of the government contractor's equipment. One of the penalties imposed on entrepreneurs was a seven-year ban from public marketplaces, however, this is shifted to a year, but long-term replacement fines will be in place."
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Uwingeneye emphasised the commitment of RPPA and relevant agencies to uphold these reforms, stressing the importance of transparency, corruption eradication, and economic development.
She called upon the media to assist in disseminating information about the new regulations, underlining Rwanda's collective effort to elevate the standard of public procurement and drive sustainable growth for the benefit of all citizens.
"Transparency, fighting corruption, and developing the people are what our country prioritises."
Uwingeneye stressed that RPPA and other relevant agencies will continue to do everything possible to ensure that the delivery of public procurement reaches a high level. She also asked the media to take part in publicising the new law and regulations to work together to improve the country.
