Unsung Heroes: Recognizing the Vital Role of Procurement Professionals in the Public Sector in Tanzania

Much of the Government’s spending in Tanzania goes into procuring goods, works and services for its operations and developing projects. In his opening remarks at a six-day training about the use of the National e-Procurement System of Tanzania (NeST) in Iringa on 26 June 2023, the Permanent Secretary to the Ministry of Information, Mohammed Abdulla , said that 70%? of the government budget is spent on procurement. Again, the Parliamentary Budget Committee Chairman, Mr Daniel Sillo, when he commended the system’s development using young Tanzanian professionals , said that 70 % of the government’s budget is allocated to procurements.

This significant spending makes the procurement professionals responsible for managing the procurement processes and procedures essential for their immeasurable contributions to the country’s development.

This article highlights the importance of recognizing their contribution.

?Despite their indispensable contributions, procurement professionals often go unnoticed in their organizations’ success stories. Behind the scenes, these architects ensure that routine operations and development projects keep moving even though they are sometimes not as smooth as expected. While their work is vital for the success of their organizations and the nation, it is a lamentable truth that they seldom receive the recognition or celebration they genuinely deserve.

?You might have heard how these professionals are condemned for bureaucracy, unprofessionalism, unfairness and bribery (famously called “ten per cent”). When these allegations are made, it is usually painted as if procurement professionals handle the whole process/circle alone. In reality, these professionals are just custodians who manage the processes. If you know or understand the procurement workflow in the Tanzania public sector, you must know that other significant players exist.

?A single procurement transaction moves from the User Department and goes through the Procurement Management Unit to the Tender Board. Before a contract is awarded, tenders must be evaluated by the Evaluation Committee and negotiated by the Negotiation Team, as the case may be. Part VI of the Public Procurement Act 2023: Institutional Arrangements details each player’s functions mentioned herein.

?At this point, you may wish to pause and ask yourself these two questions:

1.???????? When did you last hear a procurement professional commended for a completed project or services rendered?

2.???????? When did you last hear other players being mentioned when a project is said to be unsuccessful?

Procurement professionals are always mentioned when there is a delay in the completion of a project, substandard delivered materials or when a project does not meet the expected objectives.

It should be noted that the intention of this article is not to clear the corrupt and dishonest procurement professionals or try to earn them the recognition they do not deserve.

Importance of Procurement Professionals

?1. Cost Savings and Efficiency

Procurement professionals are masters of negotiation, wielding their expertise to secure the best deals and prices from suppliers. Strategically managing contracts and relationships drives significant cost savings for their organizations.

Procurement professionals can secure lower prices for goods and services by consolidating purchases and negotiating bulk discounts. For example, the Tanzania Electric Supply Company Limited (TANESCO) has leveraged its large-scale purchasing power to negotiate better rates for fuel and equipment, leading to significant cost savings in power generation.

Again, open and competitive tendering processes help organizations obtain the best prices for goods and services. The Tanzania National Roads Agency (TANROADS) conducts competitive bidding for road construction projects, which has led to cost reductions and improved quality of road infrastructure.

Regularly monitoring supplier performance and contract compliance helps identify and address issues before they escalate. For instance, the Tanzania Railways Corporation (TRC) closely monitors its contracts with suppliers of railway equipment to ensure timely delivery and adherence to quality standards, thereby avoiding additional costs associated with delays and repairs.

2. Risk Management

Risk management has become a critical aspect of procurement in today’s volatile business environment. Procurement professionals diligently assess and mitigate various risks, including supply chain disruptions, regulatory compliance issues, and supplier instability.

Risk management involves identifying, assessing, and mitigating risks associated with the procurement process to ensure continuity, compliance, and value for money. These risks can be financial, operational, legal, or reputational.

During the COVID-19 pandemic, the Ministry of Health faced significant risks in procuring medical supplies. By diversifying suppliers and working closely with international organizations, the Ministry managed to mitigate supply chain disruptions and ensure the availability of essential medical supplies.??

Procurement professionals proactively identify potential risks and develop contingency plans to mitigate their impact, enhancing organizational resilience.?

3. Quality Assurance

Quality assurance in procurement involves establishing and maintaining standards to ensure that the goods and services procured meet the specified requirements and contribute to the organization's overall objectives.

Setting clear and detailed quality standards is the first step in ensuring that procured goods and services meet organizational requirements.

Developing comprehensive and precise specifications for goods and services to be procured. For example, to ensure high-quality outcomes, the Tanzania Electric Supply Company Limited (TANESCO) specifies detailed technical requirements for power generation equipment, including performance criteria, materials, and safety standards.

Selecting the right suppliers is crucial for ensuring the quality of procured goods and services. This involves conducting rigorous prequalification processes to assess potential suppliers' capability and reliability and evaluating their past performance to ensure they have a proven track record of delivering high-quality products.

Conducting inspections and tests of goods upon delivery to verify that they meet the specified quality standards. Quality goods can also be obtained by requiring suppliers to provide third-party certification or compliance reports for products such as the Tanzania Bureau of Standards (TBS).

Challenges Faced by Procurement Professionals

1. Perception

The procurement profession, particularly in many developing countries, including Tanzania, is often perceived as corrupt, bureaucratic, ineffective, and inefficient. These perceptions stem from various factors and significantly affect the profession and its stakeholders.

Corruption perception is particularly strong in public procurement due to the large sums of money involved and the complexity of procurement processes. In Tanzania, several high-profile cases have fueled this perception. The Richmond/Dowans scandal is one of the most notable examples. It involved a controversial contract for emergency power generation, where allegations of irregularities and corruption marred the procurement process. This scandal led to the resignation of senior government officials and eroded public trust in the procurement system.

To address these perceptions, a multifaceted approach is required, including strengthening regulatory frameworks, enhancing the capacity and resources of procurement units, and promoting a culture of transparency and accountability. Efforts such as establishing the Public Procurement Regulatory Authority (PPRA) aim to improve the procurement process by providing oversight and ensuring compliance with procurement laws.

?However, continuous improvement and vigilance are necessary to overcome these challenges and restore public trust in the procurement profession.

?2. Lack of Recognition

Despite their instrumental role in driving organizational success, procurement professionals often find themselves overlooked or undervalued. Their contributions are frequently overshadowed by more visible departments, such as marketing or sales, leading to a need for more recognition and appreciation for their efforts

This lack of recognition can demoralize procurement professionals, impacting morale and job satisfaction.

3. Internal Interferences

Procurement professionals often face internal interferences that can significantly affect their ability to perform their duties efficiently and effectively. Here are some of the internal interferences and their effects:

• Organizational politics can lead to biased decision-making, favouritism, and conflicts of interest. This can undermine the fairness and transparency of the procurement process, leading to suboptimal procurement outcomes and potentially damaging the organization's reputation.
• Poor communication between procurement and other departments can lead to misunderstandings, misaligned goals, and missed opportunities. Effective procurement relies on clear, timely, and accurate communication to ensure all stakeholders are on the same page and working towards common objectives.
• Lack of support from top management can result in inadequate resources, such as budget, personnel, and technology, which are essential for effective procurement. It can also lead to a lack of strategic alignment between procurement activities and organizational goals.
• Resistance to change from within the organization can hinder the implementation of new procurement strategies, technologies, or processes.

4. External Interferences

Procurement professionals often face a variety of external interferences that can significantly impact their work and the overall procurement process. These interferences can stem from economic, political, social, technological, environmental, and legal factors. Here's a detailed explanation of how these interferences affect procurement professionals:

• Politicians may pressure procurement officials to award contracts to specific companies, often those with political connections. This can lead to favouritism, cronyism, and the selection of less qualified or more expensive contractors.
• Politicians may pressure procurement officials to bypass or bend procurement rules and regulations, such as competitive bidding requirements. Succumbing to this pressure undermines the integrity of the procurement process and can lead to corruption.
• Politicians' threat of reassignment or retaliation can make procurement officials feel beholden to political interests rather than their professional obligations. This reduces their ability to make impartial, merit-based decisions.

Reasons for Appreciation

1. Strategic Business Impact

Procurement professionals are not mere cost-cutters but strategic partners contributing to achieving organizational goals. By leveraging their market insights and supplier relationships, they identify opportunities for innovation, growth, and competitive advantage.

2. Innovation and Creativity

Procurement is no longer confined to transactional activities; it drives organizational innovation and creativity. Procurement professionals seek new technologies, trends, and best practices to optimize procurement processes and drive continuous improvement. Consider the adoption of digital procurement platforms, which streamline sourcing, contract management, and supplier collaboration, thereby enhancing efficiency and agility.

3. Adaptability and Resilience

Procurement professionals exemplify resilience in adversity. Whether navigating supply chain disruptions, economic downturns, or geopolitical uncertainties, they remain steadfast in their commitment to delivering value for their organizations. Their ability to pivot quickly, forge new partnerships, and identify alternative sourcing strategies is a testament to their resilience and resourcefulness.

?Conclusion

?Procurement professionals are the unsung heroes, working tirelessly behind the scenes to drive cost savings, mitigate risks, and uphold quality standards. Despite their challenges and the lack of recognition they often receive, their contributions are indispensable for organizational success.

Disclaimer: The information provided herein is for general information purposes only. None of it constitutes legal advice. For more information about Public Procurement in Tanzania, please get in touch with the Author.