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Simplify public procurement for innovation
The Covid pandemic exposed the vulnerabilities of traditional global supply chains and highlighted the need for governments to build resilience and local solutions into their supply chains. Local innovators, startups and SMEs rose to the occasion at the height of the pandemic, when they disrupted global logistics to provide personal protective equipment, digital solutions, medical supplies, and many others. In most African countries, government procurement represents a significant portion of public expenditure. As a result, government products and services, and whom they buy from, are critical demand-side instruments that could stimulate local innovation and entrepreneurship. However, even with this vast opportunity, many startups and SMEs in Africa find it difficult to work with the public sector, as most government processes are steeped in bureaucracy. The time and effort required to get through the application phases can be overwhelming and rarely result in the award of contracts, discouraging startups from applying for tenders. Larger organisations have considerably larger resources at their disposal, in many cases sizeable bid management teams, to locate, track and apply for tenders – startups do not, affecting their ability to compete.
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