Year of assessment | 2021-2022 |
Date of publication | April 2024 |
Country procurement volume | 4.2 billion USD (2021) |
Principal organisation | Serviço Nacional de Contratação Pública (SNCP) under the Ministry of Finance |
Main partners | African Development Bank (AfDB), French Development Agency (AFD) |
Angola
Recognizing the central role that public procurement plays in public service delivery, financial management, and sustainable development, this MAPS MAIN assessment and an additional assessment of the health sector resulted in recommendations concerning multi-annual budgeting, regulation of SOEs, sustainable public procurement, expanding e-procurement, professionalising procurement staff, strengthening contract management, and enhancing enforcement of anti-corruption measures.
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Quick facts
Background
Why was a MAPS assessment initiated?
The assessment was initiated to enhance transparency, efficiency, and governance in procurement, particularly in response to economic and social challenges worsened by oil price shocks and the COVID-19 pandemic.
Who initiated the assessment?
It was a collaboration between the Government of Angola (GoA) and international partners, including the IMF, AfDB, and World Bank.
Brief description of the country procurement system
Angola’s procurement system is centrally regulated, governed by a comprehensive legal and regulatory framework, including the Public Procurement Law (PPL), which aligns with international best practices. It emphasizes transparency and competitiveness and includes specific rules for different sectors.
Is there anything else about the country that merits mention?
Since 2017, Angola has undergone significant economic reforms to diversify its economy and reduce dependency on oil. Key strategic documents guiding these reforms include the Macroeconomic Stabilisation Plan (2017) and the National Development Plan (2018-2022). However, challenges such as high inflation, currency devaluation, and inequality persist.
Were there any disruptions?
Yes, economic and social conditions were exacerbated by oil price shocks and the COVID-19 pandemic, affecting the country’s economic stability and procurement system.
Main results and impact
Based on the findings of the assessment for each pillar, the following top recommendations for the Angolan public procurement system in general and for the health sector specifically are:
Public Accessibility of Procurement Laws and Regulations
- Issue: Public procurement laws, regulations, and policies are not easily accessible, making it difficult for stakeholders to understand and comply with procurement rules.
- Recommendations:
- Ensure all procurement laws, regulations, and guidelines are published and regularly updated on the Public Procurement Portal.
- Develop a user-friendly legal framework guide for stakeholders, including procuring entities, suppliers, and civil society.
Multi-Annual Budgeting for Procurement Alignment
- Issue: Procurement planning is hindered by the short-term orientation of Angola’s State General Budget, leading to inefficiencies in financial execution.
- Recommendations:
- Adopt a multi-annual budgetary system to align strategic planning with procurement execution.
- Strengthen the integration of procurement plans with budget allocations.
Regulating Public Procurement for State-Owned Enterprises (SOEs)
- Issue: The legal framework does not provide clear guidance on the participation of SOEs in public procurement, leading to regulatory ambiguities.
- Recommendations:
- Establish specific legal provisions defining the participation rules for SOEs in public procurement.
- Ensure competitive neutrality by setting clear conditions under which SOEs can bid for public contracts.
Developing a Sustainable Public Procurement (SPP) Strategy
- Issue: There is no formal strategy for integrating sustainability criteria into procurement processes.
- Recommendations:
- Develop a national SPP strategy, including environmental, social, and economic sustainability goals.
- Introduce guidelines for lifecycle costing methodologies and environmental award criteria in procurement.
Strengthening the National Public Procurement Service (SNCP)
- Issue: The SNCP lacks full independence and adequate resources, limiting its effectiveness as the central procurement authority.
- Recommendations:
- Grant SNCP the status of an Independent Administrative Authority to ensure autonomy.
- Increase SNCP’s budget, personnel, and technical capacity to improve procurement oversight.
Centralizing Procurement for Efficiency Gains
- Issue: The procurement system is fragmented, with inefficiencies in purchasing and contract management.
- Recommendations:
- Conduct a feasibility study for a central purchasing agency to consolidate procurement functions.
- Pilot central purchasing initiatives in key sectors such as health and infrastructure before full implementation.
Expanding and Enhancing the e-GP System
- Issue: The e-GP (electronic government procurement) system is underutilized, with only a small percentage of contracts processed electronically.
- Recommendations:
- Fully deploy the e-GP system, ensuring all procurement phases (from planning to contract management) are digitized.
- Develop a training program for procurement officers and suppliers to increase adoption of e-GP.
Professionalization of Procurement Personnel
- Issue: There is no structured career path or certification program for procurement officers, leading to skill gaps.
- Recommendations:
- Establish mandatory training and certification programs for procurement professionals.
- Define career development paths with performance indicators and continuous training requirements.
Market Engagement and Supplier Participation
- Issue: Supplier participation in public procurement is low, with only 5% of registered businesses engaging in public tenders.
- Recommendations:
- Conduct sectoral market analysis to identify barriers to supplier participation and increase competition.
- Simplify supplier registration and provide incentives for small and medium-sized enterprises (SMEs) to participate.
Transparency in Procurement Processes
- Issue: Many procurement notices, contract awards, and key procurement documents are not published, reducing transparency.
- Recommendations:
- Ensure mandatory publication of procurement plans, tenders, and contract awards on the e-GP platform.
- Develop a public dashboard to monitor procurement data and performance metrics.
Strengthening Contract Management and Performance Monitoring
- Issue: There is poor tracking of contract execution, leading to delays and lack of accountability.
- Recommendations:
- Fully implement the contract management module of the e-GP system for tracking contract performance.
- Introduce performance-based contracting, linking payments to measurable service delivery outcomes.
Standardizing Procurement Documentation and Training
- Issue: Procuring entities frequently misuse standard bidding documents (SBDs), leading to inconsistencies.
- Recommendations:
- Provide mandatory training on procurement documentation for procuring entities.
- Develop a compliance monitoring mechanism to ensure proper use of standard procurement templates.
Enhancing Anti-Corruption Measures and Integrity Training
- Issue: While anti-corruption laws exist, enforcement is weak, and procurement personnel lack formal training in integrity practices.
- Recommendations:
- Develop anti-corruption training programs for procurement officials and suppliers.
- Implement a whistleblower protection system for reporting procurement fraud.
Improving Audit and Oversight Mechanisms
- Issue: Audit reports on procurement irregularities are not widely published, limiting public oversight.
- Recommendations:
- Mandate the publication of procurement-related audit reports and enforcement actions.
- Establish a tracking system to monitor the implementation of audit recommendations.
Public Engagement and Civil Society Monitoring
- Issue: Civil society and academia are not actively engaged in procurement oversight or policy discussions.
- Recommendations:
- Involve civil society organizations (CSOs) in procurement monitoring and reform discussions.
- Introduce citizen feedback mechanisms on public procurement performance.
Strengthening Procurement Appeals Mechanisms
- Issue: The current appeals process lacks independence and efficiency, discouraging suppliers from challenging unfair procurement decisions.
- Recommendations:
- Establish an independent procurement review body to handle complaints.
- Remove financial barriers (e.g., appeal fees) that discourage suppliers from filing complaints.