Uganda tightens public spending

CAPTION: Finance Minister Henry Musasizi after a meeting with PPDA officials on July 3, 2026. (Courtesy photo).

By Our reporter

KAMPALA – The Ugandan government has begun digitally monitoring public projects worth approximately Shs1.2 trillion ($320 million) as authorities step up reforms aimed at improving spending efficiency, strengthening contract oversight and reducing procurement-related losses.

The Public Procurement and Disposal of Public Assets Authority (PPDA) said its Digital Contracts Monitoring System is now tracking 1,296 projects across ministries, departments and agencies, giving officials real-time visibility into contract implementation and enabling earlier intervention in cases of delays, cost overruns or performance risks.

The move reflects a broader shift in Uganda’s fiscal management approach, where procurement is increasingly being treated not only as an administrative function but also as a tool for improving economic outcomes, investor confidence and public investment efficiency.

Currently, the government procurement accounts for about 65% of the national budget, making it one of the largest channels of public expenditure. Officials say improving how contracts are awarded and executed is central to achieving Uganda’s long-term target of expanding the economy to $500 billion by 2040.

Speaking after a meeting with PPDA officials on July 3, 2026 Finance Minister Henry Musasizi said procurement reform will play a central role in supporting the country’s economic transformation agenda.

He urged all government entities to fully migrate to the Electronic Government Procurement (e-GP) system, saying digitisation would reduce opportunities for corruption, improve transparency and speed up procurement processes that have traditionally relied on manual systems.

“The transition to the Electronic Government Procurement system must be embraced by all government entities,” Musasizi said, adding that procurement reforms should support Uganda’s strategy of achieving tenfold economic growth over the coming decades.

The government’s push comes as several African countries intensify efforts to improve the productivity of public investment amid tighter fiscal conditions. While infrastructure spending remains a key driver of development strategies, policymakers are increasingly focused on extracting greater value from existing budgets rather than expanding expenditure.

PPDA Executive Director Canon Benson Turamye said the Digital Contracts Monitoring System is designed to strengthen oversight throughout the implementation phase of government projects, complementing the wider rollout of the e-GP platform.

Unlike traditional procurement reforms that focus mainly on tendering and contract awards, the system allows continuous monitoring after contracts are signed, enabling authorities to track execution against agreed timelines, budgets and performance indicators.

More government institutions

The authority has also introduced a standardised unit-cost framework for road construction projects aimed at improving cost estimation and reducing variations in infrastructure pricing across government entities.

Separately, PPDA issued Guideline No. 1 of 2026 requiring procuring entities to use National Framework Agreements when purchasing commonly used goods and services. Officials say the approach will consolidate government demand, improve bargaining power and reduce procurement costs through bulk purchasing.

Beyond efficiency measures, the reforms also include efforts to widen participation in public contracts. PPDA recently introduced Reservation Guideline No. 11, which sets aside selected procurement opportunities for youth, women and persons with disabilities, as part of efforts to expand inclusion and support local enterprises.

PPDA Board Chairperson Julius Ishungisa said procurement governance has a direct impact on the quality of public investment, given that nearly two-thirds of government spending flows through procurement systems.

He said stronger standards, monitoring and institutional capacity are critical to improving overall economic performance and ensuring value for money in public spending.

Development partners and private investors have also consistently flagged procurement transparency and contract management as key indicators of governance quality. Improved monitoring systems, officials say, could strengthen confidence in Uganda’s ability to deliver large infrastructure projects while reducing risks linked to delays and cost overruns.

Huge investments

Uganda is currently pursuing major investments in transport infrastructure, energy, industrial parks and oil development, all of which depend heavily on efficient procurement and contract execution.

Analysts say the adoption of digital procurement systems reflects a broader trend across emerging markets, where governments are using technology to improve accountability, reduce administrative costs and enhance data-driven decision-making.

However, the effectiveness of Uganda’s reforms will depend on consistent implementation across government institutions and the extent to which agencies fully transition from manual systems to digital platforms in practice.