“Government demand and domestic firm growth: Evidence from Uganda”, Bernard Hoekman (RSCAS-EUI, Italy)

Private sector development is a central pillar of Uganda’s national development strategy. One policy instrument employed by the government to support the private sector is public procurement. In Uganda, public procurement represents an important share of government spending – accounting for almost 60% of the government budget. The 2014 Buy Uganda Build Uganda policy aimed at expanding the share of public procurement contracts that are awarded to national companies. The policy complements the Public Procurement and Disposal of Public Assets (PPDA) law, which provides for the application of preference and reservation schemes to encourage supply from local firms when procuring goods, works or services, by calling for measures to raise awareness of local products, support development and marketing of local brands, and encourage local firms to participate in procurement opportunities. In the 2020/2021 period some 42% of the value of public contracts were awarded to local contractors.

This article published on International Growth Centre studies the impact of participation in public procurement on firm performance in Uganda.

Read more here.