By Diana .N.Kintu
The Ministry of Local Government (MoLG) has intensified efforts to curb unemployment and promote inclusive economic growth by urging local authorities to fully implement government procurement reforms designed to empower vulnerable groups. The ministry is now actively engaging leaders at the district and city levels to ensure that public procurement systems become engines of community-level economic transformation.
This week, a delegation from the Ministry, led by the Assistant Commissioner for Procurement Inspection, Johnson Musinguzi, held strategic meetings with accounting officers, procurement personnel, and community development officers in Masaka District and Mbarara City. The engagements aimed to reinforce the implementation of the government’s reservation scheme, a policy that requires public institutions to ring-fence part of their procurement budgets for youth, women, and persons with disabilities.
Commissioner Musinguzi explained that the initiative is part of broader reforms that have harmonized procurement practices across the country. Under the new framework, both local and central governments now operate within a unified system, creating consistency in the way public contracts are awarded.
“At the heart of these reforms is the reservation scheme, which ensures that special interest groups directly benefit from public spending,” Musinguzi stated. He noted that the policy is not only a legal requirement but also a deliberate tool to improve livelihoods for marginalized communities who often struggle to gain formal employment.
According to the guidelines, all local government contracts valued below UGX 10 million must be reserved for youth, women, or persons with disabilities. This means that routine works such as maintenance, small construction projects, and supply contracts should be awarded to enterprises owned or managed by individuals within these categories.
Musinguzi emphasized that the policy has a dual impact: it strengthens compliance with national procurement regulations while driving economic empowerment at the grassroots. He added that providing targeted economic opportunities is essential for reducing unemployment and fostering stronger, more self-sustaining local economies.
However, he acknowledged that procedural barriers can easily discourage the very groups the policy intends to support. To address this challenge, the ministry is simplifying the requirements for participation. This includes minimizing documentation and clarifying processes to ensure that small enterprises—often without access to legal or administrative support—can still compete effectively for government contracts.
“We do not want to create hurdles for the people we are supposed to uplift,” he noted. “If the process becomes too complicated, then the purpose of the reservation scheme is defeated.”
To enhance implementation, local governments have been guided to organize, identify, and maintain updated databases of eligible groups within their jurisdictions. This database will not only make it easier for procurement units to identify qualified providers but also ensure that opportunities remain within the local economy rather than leaking to established businesses from outside the community.
Musinguzi also called for stronger collaboration between Community Development Officers and Procurement Units, stating that their partnership is crucial in mobilizing, training, and supporting eligible groups to position themselves for available contracts.
Beyond awarding contracts, the Commissioner stressed the importance of timely payment as a non-negotiable component of success. Many small and youth-led businesses operate with limited capital, and delays in payment can easily undermine their growth or push them out of business.
“For this transformation to be realized, we must ensure that those who deliver on these contracts are paid on time,” Musinguzi said. He warned that failure to honor payment obligations not only disrupts business operations but also weakens trust in government programs, making target communities reluctant to participate in the future.
As implementation picks up across the country, the reservation scheme is expected to strengthen local enterprise development, increase employment opportunities, and deepen participation in economic activity—particularly among groups historically excluded from mainstream procurement opportunities.
The Ministry of Local Government has reaffirmed its commitment to monitoring compliance and offering ongoing support to ensure that the reforms translate into long-term economic empowerment and poverty reduction across Uganda.