Agricultural Finance Corporation’s Post

By leveraging the benefits of e-procurement systems we can create transparency, accountability and fairness in Public Procurement, ultimately leading to better public trust and more effective use of public resources. In Tanzania, we have National e-Procurement System of Tanzania (NeST).

📢 New Research on Public Procurement and Firm Growth! 📢 I’m happy to share our latest working paper, "Government Demand and Firm Growth," co-authored with Bernard Hoekman, Marco Sanfilippo, and Filippo Santi. The paper assesses the impact of government demand on private firms, using rich, transaction-level data and survey evidence from Uganda. Key findings reveal that selling to government entities can lead to: 1. Increased overall sales and weak productivity gains. 2. Shifted focus from private buyers, highlighting a “crowding-out” effect. 3. Limited capacity expansion, but access to credit is not an impediment. 4. The unique role of government as a more attractive buyer due to higher prices and long-term contracts. For practitioners, policymakers, and researchers alike, the paper provides a nuanced understanding of the effects of public procurement on firm dynamics, with special relevance for emerging markets. https://lnkd.in/dMfNrNpF

The KAM Lower Eastern Region members held their Annual General Meeting (AGM) last evening, bringing together key stakeholders from the manufacturing sector within the region to reflect on the year’s achievements, address current challenges, and explore future opportunities for growth. The Chair of the Lower Eastern Region, Mr. Jeremiah Nzioka opened the meeting by celebrating significant wins, including KAM's collaboration with the State Department for Industry to streamline county licensing fees through the County Licensing (Uniform Procedures) Act 2024. This effort aims to reduce the regulatory burden on businesses. Additionally, he noted the successful negotiation for a flexible quarterly parking fee system, offering financial relief and improved cash flow for manufacturers. Efforts are also underway with Kenya Power (KPLC) to stabilize power supply in the region, with a call to expedite these installations for reliable manufacturing operations. Joyce Njogu, MCIM, Head of Consulting and Business Development at KAM, addressed the impact of geopolitical shifts, particularly the recent U.S. elections, on trade dynamics, supply chains, and investments. She emphasized the need for Kenyan manufacturers to leverage trade agreements like the AfCFTA and EU Economic Partnership Agreement (EPA) to expand market access and competitiveness. *Members raised several concerns, including* ✅Distribution permit requirements for movement of goods across counties. ✅New Cess Fees in Machakos County: The recent imposition of ‘cess’ fees on commercial vehicles in Machakos County was highlighted as an additional financial burden, impacting logistics and increasing the cost of doing business. ✅Frequent Power Interruptions and connectivity. ✅Clarity on Single Business Permits: Concerns were raised regarding the unclear regulations on single business permits, warehouse, and strorage. In response to these issues, the CECM Trade Machakos County, John Kilonzo, reassured manufacturers of the county’s commitment to fostering a conducive business environment. He emphasized the need for a collaborative approach between the private sector and county authorities to address these challenges. #KAMAdvocacy

Yesterday, the Kenya Association of Manufacturers (KAM) met with Dr Juma Mukhwana, PhD, CBS, Principal Secretary State Department for Industry, to address pressing issues within the country’s manufacturing sector. The meeting centered on presenting and discussing the EAC Post-Budget Proposals, aiming to resolve challenges faced by sectors impacted by the Budget outcome as detailed in the gazette notice of 30th June 2024. Key discussion points included: ✅EAC, Treasury, and budget proposals: Addressing KAM's exclusion from EAC budget deliberations, with a focus on ensuring that the manufacturing sector's concerns are represented in future decisions. ✅Sector verification exercise: Conducting verification exercises across various sectors to inform Kenya's position in upcoming EAC meetings, ensuring that national interests are well-represented. ✅Tariff adjustments: Identifying sectors that require tariff splits to support sound policymaking, creating a conducive environment for manufacturing. ✅Industrial Parks Initiative: Discussing the government's plan to establish industrial parks across counties, each featuring 8 warehouses with essential infrastructure - water, electricity, waste management, and road connectivity. These parks will also include manufacturing facilities and management services to ensure smooth operations. ✅E-commerce Portal: Exploring a new partnership with Posta Kenya to create an e-commerce portal that will enhance manufacturers' access to broader markets. This engagement highlights the importance of public-private collaboration in advancing Kenya's manufacturing sector. KAM remains optimistic about the future and is committed to advocating for a competitive business environment. #KAMAdvocacy

Independently, all the post offices are headed in this direction. If this huge potential was turned into a single Pan-African e-commerce network and the African government aligned their taxation to avoid double taxation it could reach the scale of Amazon. In the spirit of PPP 😅 here is the implementation plan to get started Phase 1: Develop e-commerce platform and integrate with Kenya Posta's systems. Phase 2: Launch the marketplace and onboard businesses. Phase 3: Expand the platform's features and services. Phase 4: Scale the business and explore regional expansion.

In a significant step towards reforming South Africa’s public procurement landscape, the National Assembly recently passed the Public Procurement Bill [B 18D-2023]. In June 2023, the Minister of Finance introduced the Bill that seeks to, amongst others, create a single framework that regulates public procurement (including preferential procurement) by all organs of state. Insights by Rodney Africa, Adriano Esterhuizen, Daveraj Sauls, Gift Shezi and Mpho Moki. Read more: https://bit.ly/3yNaJrH #RegulatoryLaw

This paper examined the effect of Information Systems on revenue collection of Local Authorities in Homa Bay, Kenya. Study objectives included establishing the relationship between internal control systems, Information Systems and revenue collection in Kenyan Local Authorities; determining the levels of quality service offered to the clients by Local Authorities and investigating whether Information Systems relate to effectiveness and efficiency of Revenue Collection. A structured cross-section survey was used to collect data from 2,007 individuals, of which 165 were Local Authorities staff and 1,842 were traders in Homa Bay Municipality. The study found that: there is a relationship between Information Systems and both efficiency and effectiveness in revenue collection, there is a strong positive relationship between Internal Control Systems and revenue collection as reported by 97% of the respondents, and that resistance to change by the council staff was derailing the full implementation of Information Systems. The study is useful in reviewing the institutions’ Act and statutes to cater fully for the integration of IS in the management activities of Homa Bay Municipal Council, to managers at all levels, public sector, policy makers and scholars. https://lnkd.in/dvKb2Drv

As Ecocapp Capital, we have had an opportunity to interact and offer consultancy services to a number of sub-nationals - assignments within Kenya and Africa, on matters Own Source Revenue Generation. There is such a huge opportunity for the sub-nationals to improve their Own Source Revenue but unfortunately, the inherent bottleneck affecting one sub-national/county, seems to be affecting the next. In Kenya, the 47 county government have a potential to collect over KSh 200 billion as Own Source Revenue (study by CRA) but only did about KSh. 50 billion for the last reporting period 9report by OCOB). Automating revenue collection and forming a Revenue board has been seen as the solution towards increased OSR generation but this is far from the fact - counties which have done this are still struggling and re-changing/switching the revenue system and so on. How did Laikipia County improve its collection from KSh. 450 million to over KSh. 1 billion within 4 years? How is Homa Bay able to increase its OSR from less than KSh 300 million to now heading to over KSh. 1 billion? 2024 OSR Growth Conference - is a two days conference to help connect the dots. Venue : The Kenya School of Monetary Studies. Dates: 19th and 20th June, 2024. For more information and registration visit: https://lnkd.in/dGNbpXss

To be able to survive the competitive environment and ensure qualitative progress, a business needs to invest in responsible supply chain management to efficiently and sustainably respond to disruptions.

‼‼📚📚The textbook on "Optimizing Public Procurement Strategies for Efficiencies in Developing Countries" will soon be out for sale. ‼‼‼📚📚 In the landscape of governance and economic development, public procurement stands as a crucial pillar. Efficient procurement processes ensure the effective allocation of resources, the delivery of public services, and the realization of developmental goals. However, the realm of public procurement in developing countries often faces intricate challenges, ranging from bureaucratic red tape to issues of transparency and accountability. "Optimizing Public Procurement Strategies for Efficiency in Developing Countries" endeavors to delve into the intricacies of this critical domain. This textbook serves as a comprehensive guide, offering insights, strategies, and best practices tailored specifically to the context of developing nations. At the heart of this exploration lies the recognition of the transformative potential inherent in streamlined procurement practices. By optimizing procurement strategies, governments can not only enhance operational efficiency but also foster economic growth, improve service delivery, and bolster public trust. Below is Table of Content for the textbook 📚📚📚👇🏼👇🏼👇🏼👇🏼👇🏼👇🏼👇🏼👇🏼