Role of Procurement Laws in Facilitation of International Trade in East Africa Community
The size of the public procurement in East African countries (Kenya, Uganda & Tanzania) is quite considerable. The public authorities spend approximately 10 % of the East African countries GDP and thus, public procurement accounts for a significant portion of the overall demand for goods and services and is increasingly seen as an attractive and feasible instrument for developing society and nation. This study conducted a critical review of empirical literature to establish the role of procurement policies and procedures in facilitation of international trade in East Africa. The general objective of the study was to establish the role of procurement laws in facilitation of international trade in East Africa. The specific objectives of the study were to establish the influence of procurement policies and procedures in trade facilitation and to establish the challenges facing implementation of procurement laws in East Africa Countries. The study used a desk study review methodology where relevant empirical literature was reviewed to identify main themes. The study was informed by institutional and resource based theories. The study found that good laws alone cannot deliver the expectations of East African Countries as far as public procurement reforms are concerned. Numerous instances of corruption and exemption in public procurement have been accounted for in spite of the fixing legal regime in the region. Effective public procurement planning prompts the leads to the identification of major investment opportunities that in turn facilitates budgetary and allocation decision-making of procurement practitioners. However, there is a growing appreciation of the linkages between specific public sector objectives and public procurement practice. The outcomes of the research revealed the importance of procurement function to the East Africa region in trade facilitation. The East Africa Countries should evaluate the existing policies and regulations to ascertain whether the rules governing procurement expenditure are fit for purpose. The main challenges encountered in the procurement process was corruption, delays, collusion and bureaucracy. The study recommended that the EAC countries should adopt open contracting principles and data standard of disclosure and public participation and begin to publish and publicize government contracts throughout the procurement cycle, from the pre-tendering to the post award stage. The laws regulating public procurement in East Africa Countries on trade should make it mandatory for all public institutions to undertake regular training of their procurement practitioners on procurement laws, regulations, record-keeping, and other procedures to improve adherence to procurement regulations and facilitate trade.
Keywords: Procurement laws, policies and procedures, International Trade & East Africa.
Arasa, R. M. (2015). Antecedents to successful adoption of e-procurement in textile and apparel firms in Kenya.
Authority, P. P. O. (2016). Assessment of the procurement system in Kenya. Nairobi: PPOA.
Basheka, B. C., & Tumutegyereize, M. (2017). Determinants of public procurement corruption in Uganda: a conceptual framework. Journal of Public Procurement, (2), 33-60.
Chandrasekar Subramaniam, M. J. S. (2016). A study of the value and impact of B2B e-commerce: the case of web-based procurement. International Journal of Electronic Commerce, 6(4), 19-40.
Dello, A., & Yoshida, C. (2017). Online tendering and evaluation for public procurement in Tanzania. In Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing (SNPD), 2017 18th IEEE/ACIS International Conference on (pp. 137-141). IEEE.
Deloitte Consulting, L. L. C. (2016). Energizing the Supply Chain: Trends and Issues in Supply Chain Management.
East Africa Community, EAC, (2017). https://www.eac.int/investment/why-east-africa/trade-information.
Gray, H. S. (2015). The political economy of grand corruption in Tanzania. African Affairs, 114(456), 382-403.
Ivambi, S. S. (2016). Challenges Affecting Procurement Processes in Public Organizations in Tanzania: The Case Study of Parastatal Pensions Fund-Head Quarters-Dar es Salaam (Doctoral dissertation, The Open University of Tanzania).
Karuri, J. (2014). Prevalence of corruption in public procurement (case of Kenya agricultural research institute). Strategic Journal of Business & Change Management, 1(2).
Kenya Ethics & Anti-Corruption Commission (EACC): Country Public Officers’ Experiences 2017.
Kessy, S., & Salema, G. (2017). The Role of Public Procurement Framework in Stimulating SMEs Innovativeness in Tanzania. ORSEA JOURNAL, 4(1).
Kirton, R. M. (2013). Gender, trade and public procurement policy: Kenya, India, Australia, Jamaica. London: The Commonwealth Secretariat.
Mauro, M. P., Joly, M. H., Aisen, M. A., Alper, M. E., Boutin-Dufresne, M. F., Dridi, M. J., & Mira, M. C. (2015). Monitoring and managing fiscal risks in the East African community. International Monetary Fund.
Mazigo, D. (2014). Causes of corruption in construction public procurement in Tanzania: a case of Manyara region (Doctoral dissertation, Mzumbe University).
Merry, S. E., Davis, K. E., & Kingsbury, B. (Eds.). (2015). The quiet power of indicators: measuring governance, corruption, and rule of law. Cambridge University Press.
Muange, E., & Chirchir, M. (2016). Procurement Legislation and Performance of Constituency Development Fund Committees in Kenya. International Journal of Supply Chain Management, 1(1), 19-33.
Muthoka, J., & Iravo, M. (2017). Influence of Information Seeking Behavior on Access to Preferential Government Procurement by Special Groups (Youth and Women) In Nairobi County Kenya. International Journal of Supply Chain and Logistics, 1(3), 46-67.
Ngeno, K., & Kinoti, J. (2017). Effect of E-Procurement on Effective Supply Chain Management Process in Energy Sector in Kenya. International Journal of Supply Chain Management, 2(3), 18-37.
Nyeck, S. N. (Ed.). (2016). Public Procurement Reform and Governance in Africa. Palgrave Macmillan US.
Oromo, F. A., & Mwangangi, P. (2017). Effect of Supplier Development on Procurement Performance in Public Sector in Kenya: A Case of Kenya Electricity Generating Company Limited (Kengen). International Journal of Supply Chain Management, 2(2), 42-59.
PricewaterhouseCoopers, S. (2017). Ecofys (2009): Collection of statistical information on Green Public Procurement in Africa. Report on data collection results.
PricewaterhouseCoopers: Global Economic Crime Survey: Kenya Report 2016.
Shale, N. I. (2015). Role of e-procurement strategy on the performance of state corporations in Kenya (Doctoral dissertation).
Transparency International: East African Bribery Index- Kenya 2016.
World Bank Group: Doing Business 2017.
World Bank: Enterprise Surveys – Kenya 2013.
World Economic Forum: Global Enabling Trade Report.2016.
Zakari, U., Sharifai, M. G., Mubaraka, C. M., & Agaba, L. (2017). E-Procurement and performance of service organizations in Uganda.