Tanzania is earning praise for its new procurement system NeST, seen as a game changer for procurement in East Africa. Recently, there have been training sessions for SMEs, CSOs, and the private sector to help them use NeST better.
NeST aims to curb revenue loss among other advantages, but this will remain a dream if the knowledge gap isn’t bridged. Studies in Tanzania’s interior reveal that adapting to NeST is hindered by inadequate knowledge among both service providers and government entities.
A 2023 World Bank report suggests a strong link between digital literacy and economic growth, estimating that a 10% improvement in digital literacy can increase a country’s GDP by 2%. This is likely because businesses become more efficient and can reach new customers and markets.
However, digital literacy varies significantly across Tanzania’s regions and sectors. Many SMEs and local suppliers, especially in rural areas, lack the skills to use e-procurement platforms effectively. This digital literacy gap is a major barrier to their participation in NeST.
Small businesses, particularly those outside major urban centers, often lack the necessary infrastructure and expertise to utilize the online platform. Limited internet and computer access in rural areas further hinders businesses, widening the knowledge gap and limiting procurement opportunities.
READ: Tanzania’s New e-Procurement System to Comply with the Open Contracting Data Standard
The government’s control over vendor data within NeST introduces a critical issue of knowledge power. This control results in an information imbalance, which the government could exploit to favor certain businesses, undermining fair competition and disadvantaging smaller firms. There is a lack of clear and readily available information about how NeST functions, the criteria for awarding bids, and how businesses can address any issues they encounter. This manipulation compromises market fairness and inclusivity.
Bridging the Gap
NeST’s design and functionalities are based on Western e-procurement models, potentially overlooking local knowledge and practices regarding public procurement. While NeST prioritizes efficiency, it may overlook the social and cultural aspects of procurement traditionally practiced in Tanzania. Many smaller businesses in Tanzania rely on informal knowledge networks and customary practices for procurement. The success of NeST depends on the knowledge of various actors, from government officials designing the system to businesses navigating the platform.
NeST is more than just technology; it reflects specific knowledge about public procurement processes. Using the platform generates new data, providing valuable insights into procurement patterns and potentially revealing trends or inefficiencies. However, NeST’s true potential lies in becoming a hub for knowledge exchange and collaboration, integrating local procurement practices and knowledge into the system.
Democracy and Participation in NeST
Democracy is essential for public discussion about the social impacts of technology. It focuses on power dynamics within society, not just achieving a specific outcome. Access to information and technical skills are crucial for democratic participation in the digital age. Scholars emphasize that knowledge production and dissemination are inherently political processes, and equitable access to information is fundamental to a functioning democracy.
READ: PPRA and NEEC Signed MOU to Empower Special Groups in Public Procurement
Examining NeST through this lens reveals a potential contradiction. While it promotes transparency through online access, it simultaneously excludes those who lack the necessary knowledge and technical skills to participate effectively. The platform’s emphasis on digital literacy and internet access inadvertently marginalizes smaller businesses and those in less technologically developed areas, creating a democratic deficit.
To ensure NeST lives up to its promise, we must bridge the knowledge gap and explore the deeper connections between knowledge, democracy, and social justice. Increased knowledge within NeST strengthens both democracy and accountability. An informed citizenry, empowered by access to information and the skills to interpret it, fosters a more transparent and equitable procurement process.
Exploring the connections between knowledge, democracy, and social justice provides a broader perspective for improving NeST. Knowledge is not just a tool for empowerment; it is also a lens for exposing and addressing systemic inequities. Examining how knowledge is produced and disseminated within NeST can reveal potential biases that favor certain groups over others.
READ: Tanzania’s Public Procurement Scheme Is Not Empowering Women, Youth. Here’s Why
By recognizing and incorporating diverse perspectives, NeST can become more attuned to the needs of all stakeholders involved in public procurement. This includes government officials, technology developers, small and large businesses, and NGOs experienced in community development. Each group offers unique insights based on their experiences and positions within the procurement landscape. Ensuring that no single perspective dominates will help create a more balanced and inclusive system.
Creating platforms for knowledge exchange among stakeholders can bridge existing knowledge gaps. Workshops, forums, and mentorship programs can facilitate the sharing of ideas. Additionally, conducting local needs assessments to incorporate local procurement practices into NeST’s design can ensure the platform meets the specific needs and challenges of Tanzanian businesses.
Equipping businesses, particularly in rural areas, with digital literacy skills is vital for effective participation in NeST. This can be achieved through targeted training programs on using the platform and understanding bidding procedures. Establishing physical support centers in underserved areas can provide hands-on training and technical assistance, ensuring that smaller businesses have the resources needed to compete on a level playing field.
READ: Tanzania’s New Public Procurement Act: Reforms or Business as Usual?
While Tanzania’s NeST holds promise for a more transparent and efficient public procurement system, the digital divide and knowledge gap exclude smaller, rural businesses. To bridge this gap and ensure equitable participation, NeST must embrace diverse knowledge by valuing the expertise of all stakeholders. Workshops, forums, and mentorship programs can foster knowledge exchange, allowing diverse perspectives to be shared and integrated into the system. Additionally, digital literacy training and support centers can empower rural businesses.
True inclusivity goes beyond access. NeST’s development can be significantly enhanced by adopting a collaborative approach. By fostering cooperation between government, businesses, and civil society throughout NeST’s design, implementation, and evaluation, the platform can organically evolve to reflect the needs and expertise of all participants.
This collaboration not only strengthens the system’s effectiveness and inclusivity but also empowers stakeholders to become active participants in shaping a more transparent and equitable public procurement landscape in Tanzania. Through continuous improvement based on user feedback and fostering interaction among all stakeholders, NeST can integrate local practices and become a dynamic space for a more robust and equitable future.
Nuria Mshare is a Consultant, Board Member of Women Fund Tanzania, and Board Member at Amref Health Africa. She can be reached at nuri.mshare@gmail.com opinions expressed here are the writer’s own and do not necessarily reflect those of The Chanzo. If you are interested in publishing in this space, please contact our edito
One Response
Despite it being a good thing, NeST is still literally very user unfriendly. For instance, filling out some of the forms in the system is way too cumbersome a process for a novice or anyone attempting to fill in them manually . In the Personnel section, for instance, one requires to fill out all personal information manually, something which is tedious and unnecessary in this digital era. Why doesn’t the system provide for a “CV attachment field” for personnel listed as experts or employees.