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

1990s1990s Procurement reforms began Donor action against corruption Procurement market size accounts for c.20% of GDP st African Public Procurement Conference (Abidjan) INTRODUCTION

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? 7 Corruption Free TransparencyAccountabilityFit-for-purpose Proper Resource Management Achieve Developmental Outcomes

COUNTRY PERSPECTIVES  Pre-reform Challenges: incoherent; irregularities; political interference.  Mid-1990s: PFM reforms included procurement.  1999: Public procurement oversight group created.  2003: Public Procurement Act passed.  Creation of new institutions.  New procurement processes. 8 Ghana

 Pre-reform Challenges: multiplicity of regulation, incoherence, irregularities, no enforcement or oversight.  2001: Public Procurement Regulations passed.  2005–2007: Public Procurement & Disposal Act passed and entered into force.  Stringent anti-corruption provisions- public official repays losses! 9 Kenya COUNTRY PERSPECTIVES (2)

 Pre-reform Challenges: procurement used to entrench status quo; lacked transparency.  1652–1910: Procurement regulated since the Dutch settlement in the Cape.  : Interim 10 point plan and Green Paper to use procurement to democratize the economy.  2003: National Procurement Policy developed  2013: Office of the Chief Procurement Officer was created. 10 South Africa COUNTRY PERSPECTIVES (3)

11 COUNTRY PERSPECTIVES (4) CountryNigeriaGhanaKenyaSouth Africa LawUNCITRAL 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 Preferences and local content Yes Capacity requirements BPP CertificationBSc & HND in SCM etc NABSc & HND in SCM etc Administrative review PE & BPPPE & PPBPE & PARBPE & NT Constitutional provisions on procurement No Yes

CROSS-COUNTRY CHALLENGES Capacity Non-compliance Inadequate enforcement Inadequate information Lack of commitment Regulators resources 12

Abidjan, Cameroon 1998: The 1 st regional examination of procurement in Africa Attendance: 30 countries Achievement: Consensus on the importance of public procurement for the promotion of good governance. Abidjan, Cameroon 1998: The 1 st regional examination of procurement in Africa Attendance: 30 countries Achievement: Consensus on the importance of public procurement for the promotion of good governance. REGIONAL INITIATIVES: “The Abidjan Consensus”

Tunis, Tunisia 2009: High Level Conference on Public Procurement Reform. Attendance: 45 countries Achievement: Consolidate reforms and promote multi-sector participatory approach. Tunis, Tunisia 2009: High Level Conference on Public Procurement Reform. Attendance: 45 countries Achievement: Consolidate reforms and promote multi-sector participatory approach. REGIONAL INITIATIVES: “The Tunis Approach”

West African Economic & Monetary Union 1994: WAEMU was created. (8 member franco-phone West African countries) 2000: Regional Public Procurement Enhancement Project was approved. 2005(i): WAEMU Directive on attribution, execution and payment of public procurement contracts. 2005(ii): WAEMU Directive on the control and regulation of public procurement. 2007: WAEMU countries enacted new procurement legislation. West African Economic & Monetary Union 1994: WAEMU was created. (8 member franco-phone West African countries) 2000: Regional Public Procurement Enhancement Project was approved. 2005(i): WAEMU Directive on attribution, execution and payment of public procurement contracts. 2005(ii): WAEMU Directive on the control and regulation of public procurement. 2007: WAEMU countries enacted new procurement legislation. REGIONAL INITIATIVES: WAEMU

Common Market for Eastern and Southern Africa 1994: COMESA was created. (19 member countries) 1998: Procurement harmonisation began. 2003: Principles based procurement directives. 2009: Procurement regulations to open members’ procurement markets to member suppliers. COMESA is Africa’s largest economic zone with an estimated annual public procurement market of US$50 billion. Common Market for Eastern and Southern Africa 1994: COMESA was created. (19 member countries) 1998: Procurement harmonisation began. 2003: Principles based procurement directives. 2009: Procurement regulations to open members’ procurement markets to member suppliers. COMESA is Africa’s largest economic zone with an estimated annual public procurement market of US$50 billion. REGIONAL INITIATIVES: COMESA

CommunityWAEMUCOMESA ObjectiveRegional integration ApproachEquivalence with WAEMU directives Principles based adherence PreferencesYesYes- mandatory Regional oversight mechanism Yes – Public procurement observatory No Regional review mechanism Yes (proposed)No 17 REGIONAL INITIATIVES: WAEMU vs. COMESA

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 PROCUREMENT HARMONISATION Economic development National and regional industries Govt. spending multiplier effect Trade facilitation Market deepening Capacity building Procurement systems development

CHALLENGES TO REGIONAL HARMONIZATION 20 Is it a priority? Funding Which modelworks best? Power Plays E arly stage ofprocurementdevelopment& tied aid

SOME LESSONS FROM OTHER JURISDICTIONS 21 Top-Down Approach i.e. through the AU Bottom-Up Approach i.e. through regional trading communities Collaborative Engagement Support from LGs, States, Regional Govts Enhance Supplier Capacity Transparent Opportunities

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