Digital procurement push targets misprocurement

Revitalizing Malawi’s Economy: Tackling Inefficient Spending through Strategic Digital Procurement Reform

Post was last updated: September 12, 2025

Key Business Points

  • The Public Procurement and Disposal of Assets Authority (PPDA) has introduced the Malawi National Electronic Procurement System to increase transparency and access to government contracts for micro, small, and medium enterprises (MSMEs).
  • The system ensures that all procurement is aligned with approved plans, reducing opportunities for abuse, and offers benefits such as a 15 percent preference margin for SMEs on goods and services.
  • To fully utilize the system, SMEs must overcome challenges such as obtaining tax clearance certificates and navigating high Internet costs and weak infrastructure, which can hinder their participation in online procurement processes.

The Public Procurement and Disposal of Assets Authority (PPDA) has taken a significant step towards increasing transparency and access to government contracts for micro, small, and medium enterprises (MSMEs) in Malawi. By introducing the Malawi National Electronic Procurement System, PPDA aims to reduce misprocurement and empower SMEs to participate in government contracting. The system allows procuring entities to upload budgets at the beginning of the financial year, ensuring that every procurement is aligned with approved plans. This alignment with approved plans is crucial in tackling misprocurement, as it prevents government institutions from procuring outside their approved framework.

During a recent orientation meeting with MSMEs in Lilongwe, PPDA director of information and communications technology Paul Katema emphasized the importance of the system in promoting transparency and accountability. He noted that the system allows SMEs to access tenders and compete for government business, which is essential for their growth and development. However, Katema also expressed concern over the low participation of small businesses on the platform, with only one small business operator registered out of 260 suppliers in the past month.

SMEs have commended PPDA for creating the platform, but raised concerns about bottlenecks outside its control, such as the cumbersome process of obtaining tax clearance certificates from the Malawi Revenue Authority. They also highlighted the need for improved inter-agency coordination and investment in infrastructure to support the system. As Sangwani Mkandawire, e-trade specialist at the Digital Financial Inclusion and Competitiveness Project, observed, mistrust, costs, and weak infrastructure remain significant challenges to the adoption of e-commerce platforms in Malawi.

Despite these challenges, the introduction of the Malawi National Electronic Procurement System is a positive development for Malawi’s business community, particularly for SMEs. By providing a transparent and inclusive platform for government contracting, the system has the potential to promote zikomo za uzimu (business growth) and chuma cha mpango (economic development) in Malawi. As SMEs such as Susan Numeri’s GTS and General Supplier navigate the system, they can access new opportunities for growth and development, which can have a positive impact on the country’s economy. With the right support and infrastructure, the Malawi National Electronic Procurement System can help to empower SMEs and promote economic growth in Malawi.

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Vanessa Banda
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