Limited access to government contracts among youth, women, and persons with disabilities remains a major barrier to economic empowerment, prompting calls for local governments to fully implement procurement reservation schemes aimed at creating jobs and expanding business opportunities.
The Ministry of Local Government has completed sensitization workshops in Rukungiri District, Rukungiri Municipal Council, and Kanungu District to strengthen the implementation of reservation and preference schemes under the Public Procurement and Disposal of Public Assets (PPDA) Act, Cap 205.
The engagements brought together procurement officials, Contracts Committees, accounting officers, and technical staff to discuss how public procurement can be used as a tool to address unemployment and improve livelihoods among Special Interest Groups.
Speaking during the workshops, the Assistant Commissioner for Procurement Inspection and Coordination, Johnson Musinguzi, said public procurement presents a significant opportunity for local governments to create jobs and support local enterprise development.
He noted that over 60 percent of local government budgets are spent through procurement, but many youth, women, and persons with disabilities continue to miss out on these opportunities due to low awareness and weak implementation of reservation schemes.
“Public procurement is one of Government’s strongest tools for promoting decent employment, growing local enterprises, and improving livelihoods,” Musinguzi said.
He explained that the PPDA reservation scheme was designed to ensure Special Interest Groups benefit directly from government business opportunities.
Under the arrangement, women-owned enterprises must have at least 51 percent ownership and control by women, while youth-owned enterprises must have at least 51 percent youth membership and full youth leadership.
Musinguzi said the government, through President Yoweri Kaguta Museveni’s industrial hubs initiative, has already equipped many young people with practical skills, but stressed that local governments must also create procurement opportunities for them to participate meaningfully in economic development.
Under the reservation schemes, at least 15 percent of procurement budgets are set aside for Special Interest Groups. In addition, contracts worth UGX 30 million and below for Central Government entities and UGX 10 million and below for Local Governments are specifically reserved for these groups.
To address barriers to participation, enterprises owned by youth, women, and persons with disabilities are exempted from bidding fees and allowed to submit a Bid Securing Declaration instead of bid security.
Musinguzi also tasked Community Development Officers with sensitizing communities, particularly women, youth, and persons with disabilities involved in business, to take advantage of the available opportunities.
He urged procurement officers to incorporate reservation schemes into procurement plans before the start of the new financial year to ensure effective implementation and broader economic inclusion.
