The National Social Security Fund (NSSF) has unveiled a Shs 827 billion procurement budget for the 2024/25 financial year.
This budget is expected to drive major investments in infrastructure, services, and innovation and is seen as a strategic economic tool aimed at promoting local businesses and driving national development.
Speaking at the 9th NSSF Suppliers Forum, managing director Patrick Ayota emphasized that every shilling spent must deliver value, not only in cost efficiency and quality services but also in social and economic impact.
According to Ayota, the procurement budget has been strategically distributed across different sectors to maximize impact, Shs 653.9 billion was allocated to construction and infrastructure, Shs 118 billion went to the supply of goods, Shs 39.1 billion was earmarked for non-consultancy services, and Shs 16.1 billion to consultancy services.
“With 79% of the budget dedicated to construction, NSSF is fueling a massive infrastructure drive that will create jobs, boost local businesses, and enhance the country’s physical landscape. This aligns with Uganda’s broader Vision 2040 strategy, which focuses on economic development through infrastructure investment,” Ayota noted.
NSSF’s procurement strategy is not just about spending, it’s about transformation. Ayota revealed that the fund is integrating AI, blockchain, and e-procurement platforms to enhance efficiency, transparency, and accountability.
“These innovations will enhance data-driven decision-making, optimize costs, ensure transparency, reduce fraud in contracts, and enable real-time tracking of bids and contracts to improve supplier engagement,” he explained.
According to the Public Procurement and Disposal of Public Assets Authority (PPDA), 60 per cent of Uganda’s national budget flows through procurement, making it a powerful tool for national development. Benson Tumuramye, executive director of PPDA, emphasized that government policies are designed to prioritize local suppliers.
“Under current laws, any project below Shs 15 billion is reserved for Ugandan contractors, and large projects must subcontract at least 30% of the work to local firms,” he said.
With this in mind, Tumuramye added that NSSF’s Shs 827 billion procurement budget will directly benefit Ugandan businesses, helping them scale up, create employment, and contribute to economic growth. However, Tumuramye urged suppliers to stand against corrupt practices and report any unfair dealings.
“If all suppliers refuse to engage in corruption, the system will change. PPDA has a compliance handling mechanism, so don’t be afraid to report unfair treatment,” he said.
Edward Ssengendo Kkubo, director of Monil Cleaning and Fumigation Services, shared insights from his experience in the sector.
“Ensure all documentation and financial records are in order, and even if you lose a bid, keep refining your proposals. Always engage directly with decision-makers,” he advised.
Kkubo acknowledged the transparency and reliability of NSSF’s procurement process, highlighting that payments are made on time and contracts are awarded fairly.