This policy brief examines the impact of public procurement on domestic firms in Uganda, conducting a survey of firms which have won procurement contracts to test different hypothesis for why firms fail to scale up production when they win a procurement contract.

Findings suggest that the government may not be realizing value for money, a key goal of public procurement, nor promoting private sector development, as reflected in the absence of productivity improvements in firms accorded contracts. Higher prices for government contracts may be a consequence of a focus on seeking to increase local content, or reflect features of the procurement process, such as lengthy payment delays.

For more insights about the brief, please visit:

https://www.theigc.org/publications/public-procurement-and-firm-performance-uganda