Business

Procurement spend hits P33.5bn amid reform pressure

Procurement in a Balance- Procurement Act goes under review as spending grows
 
Procurement in a Balance- Procurement Act goes under review as spending grows

It was revealed during the National Public Procurement Pitso that Botswana’s public procurement system processed P33.5 billion in spending over the past year, placing renewed focus on its central role in the economy even as concerns persist over compliance gaps and execution inefficiencies. Public Procurement Regulatory Authority CEO, Tumelo Motsumi, said the procurement function is under increasing pressure to deliver value beyond process compliance, particularly in a constrained fiscal environment. “It is not an easy task to be leading public procurement, particularly during a time when our fiscus is not doing well. This substantial expenditure represents a significant portion of our national budget,” she said at the forum.

Her remarks come at a time when government is tightening spending and seeking greater efficiency in how public funds are deployed, with procurement sitting at the centre of service delivery and infrastructure development. Despite the scale of spending, authorities acknowledge that weaknesses remain within the system, particularly around compliance, project execution and value for money. These gaps have increasingly come into focus as government leans on procurement as both a fiscal tool and an instrument for economic transformation. Motsumi said procurement must play a broader developmental role, particularly in supporting citizen economic participation.

“Public procurement, ladies and gentlemen, must serve as a catalyst for inclusive growth and citizen empowerment. It must not merely serve to the benefit of in society but it must achieve a greater good” she added. According to figures presented at the Pitso, citizen-owned enterprises including youth, women and people with disabilities, secured contracts worth P8.7 billion, representing 26% of total procurement spend. The figure exceeds the 20% threshold set under the local procurement framework, highlighting progress in broadening participation. However, the challenge before policy makers remains to translate spending into tangible economic outcomes. With billions flowing annually through the system, procurement is increasingly viewed as a strategic lever to stimulate local industry, support enterprise development and drive diversification. At the same time, inefficiencies in contract delivery and oversight continue to raise concerns about whether the full value of public spending is being realised.