The Procurement and Disposal Unit’s core responsibility in the Fund is to streamline, mitigate and reduce process risks and costs associated with the acquisition of goods, works and services.

The department contributes to fulfilling the Fund’s strategic objectives by sourcing quality products and complying with the established procurement regulations.

Reliance is placed on data analytics, market research and automation to predict and fulfill stakeholder requirements while incorporating sustainability initiatives in the processes.

Sustainability, as a global trend has gained increasing traction. In broad terms, sustainability is categorised into three key aspects namely; Environment, Society and Economy. Sustainability has been an integral part of procurement.

We partner with suppliers to incorporate sustainable practices in their processes to reduce carbon footprint, ensure efficient use of sources of energy and utilisation of recyclable and reusable products

Gerald Mugabi, Head of Procurement and Disposal Unit

Engaging with our suppliers

This year, the Fund organised a Supplier Forum under the theme “Adapting to Global Trends” to emphasise its commitment to sustainability. The Supplier’s Forum was well attended, and it attained a satisfaction rating of 99%. We hope to continue to inspire the supplier community and other institutions to incorporate sustainable practices in their operations.

  • Achieved significant cost savings of UGX 1.97Bn through strategic negotiations, process optimisations, and effective supplier management
  • Engaged some 430 suppliers
  • Procurement proficiency is rated at 93%

  • Savings directly contributed to the Fund’s financial health
  • Projects of UGX 191Bn awarded to local contractors (including design and build of Yusuf Lule project and its supervision at UGX 180Bn and UGX 3.7Bn respectively). Framework agreements with some 81 local suppliers; number continues to grow
  • Streamlined procurement processes, leveraging technology, and making data-driven decisions

We held our annual Supplier Forum in July 2023.

Procurement governance

From a governance perspective, we continue to adhere to the PPDA law, regulations, and internal policies.

This has been demonstrated by the department ratings of 90% and 94% from the Internal Audit and Enterprise Risk Department respectively. PPDA recognised the Procurement Department for its excellency in transparency and accountability while handling procurement and disposal processes.

Outlook for the year ahead

Currently we lack adequate contract monitoring visibility, and we need to strengthen supplier performance appraisals. We need to effectively track contracts from the drafting stage to performance evaluation and final delivery of the output. A contract management solution has been developed to address the issues on contract expiry, delayed delivery of goods and services and contract deliverables.

Our focus in FY2023/24 will be to deliver on the Fund’s strategic projects, mitigate procurement risks - especially contract management risks - reduce procurement acquisition costs, strengthen supplier relationships, and continue to drive sustainability in our processes.

We also commit to support the Fund with the implementation of new products and provide innovative solutions.