The Tanzanian government has made significant strides in digitalizing its procurement processes through the National e-Procurement System of Tanzania (NeST). Since its inception in September 2023, the system has processed 430,643 tenders worth Sh42.6 trillion. This development is expected to reduce the cost of doing business with the public sector and widen market access for local companies. According to the Public Procurement Regulatory Authority (PPRA) director general, Mr. Dennis Simba, the digital platform has revolutionized how public procurement is conducted.
The NeST system has enabled suppliers to submit bids remotely, contracts to be signed electronically, and tender securities to be verified through connected banking systems. This shift aims to improve transparency, competition, and accountability while reducing the time and costs associated with government tendering. With approximately 70 percent of the government budget spent through public procurement, the scale of the system is significant for the private sector. The digital platform creates a central channel for businesses to access opportunities across public institutions.
The Public Procurement Act of 2023 and its 2024 regulations require procurement processes to be conducted through NeST, which has become the main channel for advertising and processing government tenders. The system has eliminated the need for suppliers to travel to procuring entities to deliver physical tender documents, allowing businesses to participate from anywhere. This has reduced the cost and time required to participate in public procurement processes. Currently, a supplier can apply for a tender from anywhere, increasing accessibility and convenience.
Compliance with procurement laws has shown improvement, rising from 65 percent in the 2023/24 financial year to 76 percent in 2024/25 and 79 percent in 2025/26. This progress indicates adherence to procurement procedures, although full compliance remains a challenge. The transition to the digital system has also generated administrative savings, with PPRA estimating that the system has prevented the printing of more than 288.57 million pages of tender documents, saving approximately Sh27.64 billion.
The NeST system is connected to over 30 other platforms, including banking, payment, licensing, and professional registration systems, to facilitate document verification and reduce the risk of forged submissions. NMB Bank is already directly connected to the system for verifying tender securities, while CRDB Bank and Tanzania Commercial Bank are in the final stages of integration. A separate Bank Security Portal, introduced on October 1, 2026, has connected over 36 banks, allowing them to issue and verify tender securities through NeST.
The digital platform is being used to implement policies aimed at increasing domestic participation in government procurement. Tenders worth up to Sh50 billion are reserved for local suppliers, while domestic bidders can receive a price preference of up to 10 percent in internationally competitive tenders. Locally produced goods can also receive a preference of up to 15 percent over imported products. These provisions aim to ensure that government spending supports domestic businesses.
PPRA is using NeST to expand procurement opportunities for special groups, including youth, women, older people, and people with disabilities. Public institutions are required to allocate 30 percent of their procurement budgets to these groups. According to PPRA, 33,659 special groups have registered on the platform and secured tenders worth a combined Sh82.34 billion. The authority aims to increase the number of procurement-ready special groups to approximately 300,000 in line with Tanzania’s Development Vision 2050.
Key points
- The National e-Procurement System of Tanzania has processed 430,643 tenders worth Sh42.6 trillion in three years.
- The digital system aims to improve transparency, competition, and accountability in public procurement.
- The system has generated administrative savings, including preventing the printing of over 288.57 million pages of tender documents.
