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PUBLIC PROCUREMENT REFORMS: AN ANALYSIS OF EXAMPLES FROM THE AFRICAN REGION Dr. Sope Williams-Elegbe Deputy 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 Introduction What Does Procurement Reform Look Like? What Should Procurement Reforms Achieve? Country Perspectives of Procurement Reforms Cross-Country Challenges Regional Initiatives in Procurement Reforms The Future of Procurement Reform in Africa Conclusion 3 INTRODUCTION 1st African Public Procurement Conference (Abidjan) 1998 Procurement reforms began Donor action against corruption 1995 1990s Procurement market size accounts for c.20% of GDP 1999 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. 5 WHAT DOES PROCUREMENT REFORM LOOK LIKE? (2) 6 WHAT SHOULD PROCUREMENT REFORMS ACHIEVE? Transparency Corruption Free Proper Resource Management Accountability Achieve Developmental Outcomes Fit-for-purpose 7 COUNTRY PERSPECTIVES Pre-reform Challenges: incoherent; irregularities; political interference. Mid-1990s: procurement. Ghana PFM reforms included 1999: Public procurement oversight group created. 2003: Public Procurement Act passed. Creation of new institutions. New procurement processes. 8 COUNTRY PERSPECTIVES (2) Pre-reform Challenges: multiplicity of regulation, incoherence, irregularities, no enforcement or oversight. 2001: Public passed. Kenya Procurement Regulations 2005–2007: Public Procurement & Disposal Act passed and entered into force. Stringent anti-corruption public official repays losses! 9 provisions- COUNTRY PERSPECTIVES (3) Pre-reform Challenges: procurement used to entrench status quo; lacked transparency. 1652–1910: Procurement regulated since the Dutch settlement in the Cape. South Africa 1995-1997: Interim 10 point plan and Green Paper to use procurement to democratize the economy. 2003: National developed Procurement Policy 2013: Office of the Chief Procurement Officer was created. 10 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 11 CROSS-COUNTRY CHALLENGES Capacity Non-compliance Inadequate enforcement Inadequate information 12 Lack of commitment Regulators resources REGIONAL INITIATIVES: “The Abidjan Consensus” REGIONAL INITIATIVES: “The Tunis Approach” REGIONAL INITIATIVES: WAEMU REGIONAL INITIATIVES: COMESA REGIONAL INITIATIVES: WAEMU vs. 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 17 THE FUTURE OF PROCUREMENT REFORM IN AFRICA • The future of procurement in Africa is bright and regional. 18 THE FUTURE OF PROCUREMENT REFORM IN AFRICA 19 CHALLENGES TO REGIONAL HARMONIZATION Early stage of procurement development & tied aid Power Plays Which model works best? 20 Funding Is it a priority? SOME LESSONS FROM OTHER JURISDICTIONS Top-Down Approach Bottom-Up Approach i.e. through the AU i.e. through regional trading communities Collaborative Engagement Support from LGs, States, Regional Govts 21 Enhance Supplier Capacity Transparent Opportunities THANK YOU [email protected]