In a strategic engagement held recently, the State House Local Content Unit met with officials from the Public Procurement and Disposal of Public Assets Authority (PPDA) to deliberate on the implementation of newly issued reservation schemes aimed at promoting inclusive economic participation through public procurement.

The PPDA team, represented by Mr. Ronald Tumuheirwe and Mr. Abaine Michael, made comprehensive presentations on the Reservation Schemes for Women, Youth, Persons with Disabilities, and Local Providers, officially effective from March 22, 2024. These guidelines are a landmark move towards equitable access to public procurement by marginalized and local groups.

Empowering Special Interest Groups

Under Section 63 of the PPDA Act (Cap 205), the new framework mandates that at least 15% of an entity’s procurement budget be reserved for enterprises owned by women, youth, and persons with disabilities (PWDs). Qualifying businesses must be at least 51% owned and controlled by members of the respective target groups and registered in Uganda.

To foster greater accessibility, the guidelines eliminate traditional
barriers:

• No bid security is required—only a declaration form
• No fees are charged for bidding documents.
• Experience requirements are reduced to just one relevant contract of half the procurement value.
• Annual turnover requirements are capped at 50% of the
• estimated contract value.

Boosting Local Industry Participation

The presentation also emphasized broader local content provisions under Sections 50(2), 59B, and 97 of the PPDA Act. These include reserving:

• Road works up to UGX 15 billion,
• Other public works up to UGX 10 billion, and
• Locally manufactured supplies up to UGX 1 billion to
  National Providers—companies fully owned and controlled
  by Ugandan citizens

For procurements exceeding these thresholds, Resident and EAC providers are next in line, ensuring regional economic integration while maintaining a Ugandan-first approach. Manufacturers based in Uganda also receive preferential treatment for key items such as uniforms, medical supplies, and electrical components.

Mandatory Sub-Contracting and Local Inputs

To further entrench local benefit, all foreign contractors handling major works (e.g., road contracts above UGX 45 billion) must sub-contract at least 30% of the contract value to national or resident providers. Additionally, providers must prioritize local inputs and consultants where available.

In a move aimed at skills transfer, the guidelines require that projects valued above UGX 5 billion attach graduate trainees at a ratio of 1:4 per Registered Engineer or Architect.

Transparency and Accountability

Procuring and Disposing Entities (PDEs) are required to:

• Include reserved procurements in their annual procurement
• plans,
• Submit monthly reports on contracts awarded under
  reservation schemes, and
• Participate in quarterly monitoring and annual
  assessments led by PPDA.

The State House Local Content Unit commended PPDA for this progressive step and reaffirmed its commitment to championing Ugandan participation in the country’s economic development. This collaborative framework will accelerate the realization of inclusive growth, job creation, and sustainable local enterprise development.

For more information, please contact 039 310 3826 / 039 310 3827