The World Bank has warned that the prevailing macroeconomic conditions, compounded by climate vulnerability are increasing operational risks and costs for both government and private enterprises, rendering procurement and supply chains vulnerable.
Speaking during the official opening of the 2025 Malawi Institute of Procurement and Supply (Mips) Annual Lakeshore Conference in Mangochi District on Wednesday evening, World Bank country director Firas Raad said aligning rules, processes, digital systems and partnerships with what service delivery needs can convert scarce resources into tangible outcomes at a lower cost.
He said that countries that have embraced digital in government procurement and performance measurement are documenting savings, higher small business enterprises participation and better service delivery, including reduced delays and improved infrastructure quality.
Said Raad: “Around the world, governments purchase at massive scale, procurement can reach 10 to 30 percent of the gross domestic product [GDP] in many countries, financing core investments and essential services.
“Improving planning, tendering and contract management saves time and money and advances wider goals such as small and medium enterprise development and green growth.”
He said digital government procurement has repeatedly delivered savings and reliability, with evidence from multiple countries showing price and transaction-cost reductions, higher competition, fewer delays and in some cases, measurable improvements in road quality and on-time execution.”
Raad said, for instance, the $80 million (about K140 billion) Fiscal Governance Programme for Results that the World Bank Group is financing and seeks to improve the effectiveness of resource mobilisation, uses disbursement linked indicators for e‑procurement and beneficial ownership to drive measurable performance.
He said this ensures faster e-procurement at scale with a 40 percent reduction in the average time from invitation to award for national competitive procurement contracts, directly addressing the delays that slow service delivery and raise costs.
Raad said cross-country evidence suggests efficiency gains from full adoption of e-procurement in the range of 10 to 12 percent.
Public Procurement and Disposal of Assets Authority (PPDA) director general Eddington Chilapondwa said the legal reforms through the enactment of the PPDA Act of 2025 responded to this call as the new law has provisions on digital government procurement through Malawi National Electronic Procurement System.
He said the law formally recognises e-procurement as legitimate and mandates the authority to develop policies and measures to enhance the use of information and communications technology.
Said Chilapondwa: “The adoption of digital public procurement will facilitate the participation of many businesses in public procurement with one part of the Malawi National Electronic Procurement System being e-marketplace, which is specifically targeting the micro, small and medium enterprises.
“This speaks more of the commitment of the government in ensuring that the public funds used for public procurement are accessed by the majority operating as micro, small and medium enterprises.”
Mips board chairperson Tisungeni Kandulu said they embrace the government digital procurement fully because it comes with transparency, adding that they would want to have all public institutions launch their e-procurement strategies.
PPDA data shows that to-date, 32 procuring and disposing entities were onboarded and are expected to wholly be executing their procurement through Malawi National Electronic Procurement System.
Data from the Ministry of Finance and Economic Affairs show that more than 50 percent of government’s budget goes towards procurement of goods and services.
