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Home News Business

Local Governments urged to use procurement to create jobs

by Ugnewsline Reporter
May 22, 2026
in Business, News, Politics
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The Ministry of Local Government has completed sensitization workshops in Rukungiri District, Rukungiri Municipal Council and Kanungu District aimed at strengthening implementation of reservation and preference schemes under the Public Procurement and Disposal of Public Assets (PPDA) Act Cap 205.

The workshops brought together procurement officials, Contracts Committees, accounting officers and technical staff to strengthen understanding of how public procurement can empower youth, women and people with disabilities through Government business opportunities.

Speaking during the engagements, the Assistant Commissioner for Procurement Inspection and Coordination, Johnson Musinguzi, said public procurement remains one of Government’s strongest tools for promoting decent employment, local enterprise growth and improving livelihoods.


He noted that more than 60 percent of Local Government budgets are spent through procurement, making reservation schemes an important avenue for creating jobs and empowering Special Interest Groups including Women-Owned Enterprises, Youth-Owned Enterprises and enterprises owned by people who are enabled differently.

Musinguzi explained that under the PPDA reservation scheme, women-owned enterprises must have at least 51 percent women ownership and control, while youth-owned enterprises must have at least 51 percent youth membership and full youth leadership.

He said that H.E The President Yoweri Museveni introduced industrial hubs to equip young people with practical skills, adding that Local Governments should create procurement opportunities that allow skilled youth to participate in economic development.

Under the reservation schemes, at least 15 percent of procurement budgets is reserved for Special Interest Groups, while procurements worth Shs30 million and below for Central Government and Shs10 million and below for Local Governments are specifically reserved for them.

He added that enterprises owned by Special Interest Groups are exempted from bidding fees and allowed to submit a Bid Securing Declaration instead of bid security to encourage wider participation in public procurement.

Musinguzi also encouraged Community Development Officers to sensitize communities, especially women, youth and people who are enabled differently to engaged in business, to take advantage of the available opportunities.

He further urged procurement officers to integrate reservation schemes into their procurement plans before the start of the new financial year to ensure full implementation.

Ugnewsline Reporter

Ugnewsline Reporter

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