Developing Countries Move To Boost Public Procurement for Women-Owned Businesses

ENA Global 2024-06-20 16:33:19 New Delhi, Jun 20 (KNN) Developing countries are increasingly recognising the importance of promoting women-owned businesses through public procurement policies. Kenya has emerged as a leader in this area through its Access to Government Procurement Opportunities (AGPO) program. Launched in 2015, AGPO reserves 30 per cent of government spending for women-owned enterprises, youth, people with disabilities, and SMEs. As of March 2024, over 107,000 women-owned businesses have registered under AGPO, securing contracts worth around USD 1 billion. Indonesia and several African nations have implemented initiatives to enhance women's participation in bidding for and winning government contracts. A recent study in Indonesia highlighted some key challenges faced by women-owned businesses in accessing public procurement opportunities. The study found low awareness and limited capacity among women entrepreneurs regarding government procurement processes. Access to financing was also identified as a major hurdle, with inadequate support mechanisms for women-owned businesses seeking funds. The Indonesian government has taken note of these findings and aims to develop targeted recommendations to address the identified issues systematically. In Africa's Eastern and Southern regions, countries like Kenya, Tanzania, Uganda, Botswana, and South Africa have anchored preferential public procurement policies for women-owned enterprises in their laws and regulations. Tanzania and Uganda have similar 30 per cent reservation schemes, while Botswana allocates 20 per cent of procurement spending to women-owned enterprises. South Africa's Broad-Based Black Economic Empowerment Act also includes affirmative procurement provisions for women-owned businesses. Despite these progressive policies, implementation remains a challenge across the region. In Tanzania, only a handful of government entities have met the 30 per cent reservation target. Data limitations also make it difficult to assess the true impact of South Africa's policies. To address these issues, African governments are undertaking various interventions, such as sensitisation campaigns, capacity-building programs, enhanced monitoring, and financing support through credit guarantee schemes and dedicated funds. As both Indonesia and African nations strive to increase women's participation in public procurement, continued efforts are needed to raise awareness, build capacity, and provide adequate financing support to unlock the full potential of women-owned businesses in contributing to economic growth and development. (KNN Bureau) 38287 https://knnindia.co.in/news/newsdetails/global/developing-countries-move-to-boost-public-procurement-for-women-owned-businesses 2024-06-20 16:33:19 knnindia.co.in Developing Countries Move To Boost Public Procurement for Women-Owned Businesses