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  1. MAPS Initiative
  2. Assessments
  3. Country cases
  4. Malawi

Quick facts

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Countries: Malawi
Year of assessment: 2017
Procurement value: 1,2 billion EURO (2017)

Principal organisation: Public Procurement and Disposal of Assets Authority (PPDA)

Main partners:

The World Bank (WB), EU, African Development Bank (AfDB)

 

Background

Malawi is a low-income country with an agriculture-based economy, weak economic governance environment, and a Gross National Income (GNI) per capita estimated at US$320 in 2016. Public procurement plays a crucial role in Malawi's economy, accounting for over 14% of GDP, and improving efficiency in this area is a priority for the government.

Because no assessment of the public procurement system had been undertaken since a 2004 CPAR, the government decided to do a MAPS assessment in collaboration with the World Bank. The assessment aimed to provide an up-to-date diagnostic of Malawi's public procurement systems, with the goal of improving value for money, transparency, fairness, and good governance in public procurement. It also served as a basis for engaging development partners in Malawi.

Process

MAPS_Malawi_country-case 

The assessment was initiated in December 2017 and concluded in May 2018, spanning approximately six months.

Apart from legal documents, the assessment relied on interviews with stakeholders and the review of procurement files. It analyzed 91 procurement cases from 13 procuring entities, supplemented by procurement review reports and interviews with government personnel. Additionally, a survey was conducted with 150 respondents from the private sector to gather feedback on various procurement-related issues.

The assessment faced challenges in data collection due to the absence of functioning web portals, e-GP platforms, and open data sources. Obtaining all records of the sample cases posed significant challenges, as did analyzing the legal framework due to recent legislative changes. Despite these challenges, the assessment proceeded with a comprehensive approach to gather relevant information and insights.

 

Key results and impacts

Key Findings:

  • Significant progress has been made in the legal, regulatory, and institutional framework for public procurement, but challenges remain.
  • While Malawi has developed a supportive suite of laws on accountability, integrity, and transparency, enforcement of these laws is weak.
  • The institutional architecture for public procurement is quite developed, but gaps in the legal framework and enforcement weaken the system's efficiency and fairness.
  • Other key challenges include weak professionalisation capacity, low competition in the national market, constraints on private sector participation, and inadequate procurement oversight and integrity.

Key Recommendations:

  • Amend the Procurement and Disposal of Assets Act to address gaps, including conflict-of-interest issues, and streamline procurement processes.
  • Improve operational efficiency through simplifying the clearance system, addressing funding gaps, implementing e-GP, and strengthening professionalisation.
  • Boost private sector participation through outreach seminars, surveys, and initiatives for MSME inclusion.
  • Strengthen oversight and integrity by enhancing collaboration between the National Audit Office and PPDA, as well as engaging civil society.
  • Establish a Public Procurement Technical Advisory Group (PPTAG) to steward and monitor procurement reforms, in order to keep up momentum.