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PROMOTION OF LOCAL PRODUCTS IN PUBLIC PROCUREMENT FOR SUSTAINABLE DEVELOPMENT

The promotion of local products was the focus of a meeting recently organized by the Rwanda Public Procurement Authority (RPPA) with a significant number of local manufacturers who produce local products and representatives of various government institutions. The meeting's theme was "Mainstreaming local products in the field of public procurement," and it produced recommendations that will assist RPPA in developing strategies, tools, and guidelines to support and efficiently manage the public procurement process

PROMOTION OF LOCAL PRODUCTS IN PUBLIC PROCUREMENT FOR SUSTAINABLE DEVELOPMENT

The promotion of local products was the focus of a meeting recently organized by the Rwanda Public Procurement Authority (RPPA) with a significant number of local manufacturers who produce local products and representatives of various government institutions. The meeting's theme was "Mainstreaming local products in the field of public procurement," and it produced recommendations that will assist RPPA in developing strategies, tools, and guidelines to support and efficiently manage the public procurement process

The Director General of RPPA, Ms. Joyeuse UWINGENEYE, highlighted the benefits given to local products in public procurement through exclusive and local preferences as specified by the law governing public procurement in Rwanda in her introductory remarks.

One of the recommendations for the sustainability of the "Made in Rwanda" policy and promotion of local suppliers came from the study report on the promotion of local industrial contribution to economic growth and Rwandan made products through public procurement conducted in 2021. It stated that RPPA should organize training and workshops for local manufacturers/suppliers to sensitize them register and upload their products/services (commodity and items) in Umucyo e-Catalog. Article 73 of the law N° 031/2022 of November 21, 2022, governing public procurement, which establishes the exclusive and local preference while purchasing goods, services, and works," she stated.

She stated that there were approximately 263 manufacturers, and many of them created goods that were purchased through public procurement. By registering a large number of products in the UMUCYO system, procurement officials will no longer be need to make the common excuse that they are unaware of which products are made or manufactured in Rwanda and so qualify for exclusive local preferences. We ensure value for money for the government through competition and investor trust by maintaining the procurement of locally created goods. She guarantees that the RPPA staff would instruct them on how to add their items to the Rwandan E-procurement system (Umucyo).

Participants heard from Sibomana P. Celestin, Division Manager for Research, Capacity Development and Monitoring at RPPA, who provided an overview of Rwanda's existing public procurement system, the procurement cycle for goods and works tenders, and consultant" services. He went on to explain: "Fundamental Principles Governing Public Procurement (Art.6 of the Law n°62/2018 of August 25, 2018), Types of Public Procurement Tenders, Methods to be Used in Public Procurement, Exemption of Experience to Small and Medium Companies (Art.29 of M.O), Exclusive and local preference which is applied to international or national tenders according to the threshold indicated in the Art.41 of M.O.

In his presentation, E-Procurement Specialist Vincent NGARAMBE presented the registration procedure in the system UMUCYO, including applying for a digital certificate, registering on the Umucyo E-Procurement System, and submitting bids. He urged the attendees to self-register their goods with Umucyo E-procurement. "This will help to increase the number of bidders and the availability of locally produced goods, enhancing the competitiveness of local manufacturers in public procurement," he said

The Rwanda Standards Board's (RSB) Director of Products Certification Unit, Jean Bosco Mulindi, explained the certification procedure, System and Product Marks Certification. He emphasized the advantages of certification, including: Building the interested party's confidence and trust higher consumer safety and comfort, higher government income, decreased production costs, serving as a marketing tool, and reducing losses to boost profits

Encountered challenges in the promotion of Made in Rwanda policy and some recommendations

The representative of the Rwanda Manufacturers Association (RAM) emphasized some difficulties, including: a lack of specific tools to target locally produced goods, such as the establishment of a preferential margin in public procurement for such goods; and a lack of awareness since the majority of manufacturers are used to private rather than public tendering.

Local manufacturers encouraged RPPA to raise awareness about using locally produced goods in public procurement because the government is their greatest consumer. Local businesses affirm that their goods are of high quality because they meet RSB criteria and, in addition, because their customers are happy with them.  Therefore, the government should prioritize locally produced goods under the RPPA by giving them exclusive local preference

"Establishment of the threshold for Rwandan-made products in public procurement: Setting up a minimum percentage (margin of choice) of locally produced materials for public undertakings like construction. items supply: Locally produced items ought to be prioritized. Promotion of SMEs: "These are some proposals for promoting Made in Rwanda in the procurement of supplies through the establishment threshold in the budget that is dedicated to SMEs," he stated.

Recommendations such as each stakeholder should promote Made in Rwanda so they can support the development of the nation came from fruitful discussions.

Among the suggestions made by the participants are the following:

  • RPPA should disseminate information on local preference through a circular or any other official communication explicitly explaining the policy on exclusive and local preference in public procurement. This will provide clarity to all stakeholders, ensuring consistent understanding and implementation of local preference guidelines.
  • RPPA was requested to develop strategies, tools, and guidelines that will support and effectively monitor the implementation of exclusive and local preferences as outlined in the Made in Rwanda policy through public procurement.
  • RPPA, RAM and RSB were requested to organize training sessions for bidders, manufacturers, and procurement officers. These sessions should focus on educating participants about the registration process for locally manufactured products, certification and providing insights into the application of local and exclusive preferences in public tenders.

Ms. Joyeuse Uwingeneye, the director general of the RPPA, thanked all of the attendees for their contributions, contributions, and commitment to promoting Made in Rwanda in her concluding remarks.

Charlotte Karangwayire

Useful links

  • Government of Rwanda
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  • E-procurement System(UMUCYO)
  • Ministry of Finance
  • List of Blacklisted Companies
  • Suspended companies
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  • eLearning platform
  • Reference price

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