Uganda’s youth, women and people with disabilities secured 4,124 government procurement contracts worth Sh84 billion ($23.5 million) in the financial year 2025/26, as authorities seek to use public spending to widen access to business opportunities for disadvantaged groups.
The contracts, awarded across various government entities, were part of measures introduced by the Public Procurement and Disposal of Public Assets Authority (PPDA) to increase the participation of vulnerable groups in public procurement.
Of the total contracts, 2,847 went to youth-owned enterprises, according to Ronald Tumuhairwe, PPDA’s manager for local content.
The beneficiaries included companies, associations, community-based organisations and other legally established youth enterprises.
“The opportunities are there, but the key issue is ensuring that young people understand how to access them and that government entities comply with the reservation requirements,” he said in an interview.
The Sh84 billion awarded during the year, however, remained below the PPDA’s target that government entities reserve at least 15% of their annual procurement budgets for youth and other marginalised Ugandans.
The reservation scheme was introduced in 2024 as part of efforts to make public procurement more accessible to groups that have traditionally faced barriers when competing for government contracts.
Under the guidelines, procurements valued at Sh30 million or less in central government entities are reserved for youth and other marginalised groups. In local governments, procurements valued at Sh10 million or less are similarly reserved.
Youth entrepreneurs participating under the scheme are also exempted from paying bid securities and bidding fees when obtaining tender documents.
PPDA has also sought to simplify bidding documents and established an advisory unit to provide free guidance to young entrepreneurs on tendering and preparing responsive bids.
The push reflects the growing importance of public procurement to Uganda’s private sector. A large share of government expenditure is channelled through the purchase of goods and services needed to deliver public programmes, creating a potentially significant market for local businesses.
For young Ugandans, who make up a substantial share of the country’s population, access to that market can provide an avenue for businesses to grow beyond informal or small-scale operations.
Tumuhairwe said PPDA was also working to address some of the financing and capacity constraints that can prevent young enterprises from competing effectively for contracts.
The authority is encouraging partnerships between large, experienced contractors and youth enterprises to facilitate skills development, technology transfer and innovation. It is also pushing for greater awareness among government entities about their obligations under the reservation schemes.
Another proposal is the establishment of a Youth LPO Fund, which would provide financial support to young businesses that win government contracts but face difficulties financing orders before receiving payment.
PPDA’s mandate extends beyond promoting participation by disadvantaged groups. Established under the PPDA Act, the authority regulates Uganda’s public procurement and disposal system, monitors procurement practices and develops standards and legal frameworks governing the sector.
Tumuhairwe said implementation of the reservation schemes remained a major priority, with PPDA monitoring procurement plans and contracts awarded by government entities on a quarterly and annual basis.
The authority’s broader strategy is to align public procurement with Uganda’s development ambitions by ensuring government spending delivers not only goods and services but also wider economic benefits.
For youth-owned businesses and enterprises run by people with disabilities, the challenge now is to turn the access created by the reservation schemes into sustainable businesses, while ensuring government entities consistently comply with the rules governing preferential procurement.
PPDA says it will continue working with government officials, political leaders and youth representatives as it seeks to place young entrepreneurs at the centre of Uganda’s wider economic transformation agenda.
