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PPDA Eases Bidding Rules to Help Youth-Owned Firms Win Government Contract

Youth-owned firms in Uganda will be able to use bid security declarations instead of bank guarantees under new reforms unveiled by the Public Procurement and Disposal of Public Assets Authority.

A
Administrator
Editorial Desk
Published 29 Oct 2026
5 min read

he Public Procurement and Disposal of Public Assets Authority (PPDA) has unveiled reforms to make government tendering easier for young entrepreneurs, with a proposed turnover threshold of 50% of a contract's value at the centre of the changes.

The reforms were announced at a youth engagement on public procurement opportunities in Kampala, led by the Executive Director of the PPDA, Benson Turamye.

Under the new approach, eligible youth-owned firms will be allowed to submit bid security declarations in place of bank guarantees, which have long been one of the costliest hurdles for small bidders.

The turnover requirement has also been lowered. A firm bidding for a Shs100 million contract will need to show annual turnover of Shs50 million, opening the door to younger businesses that have not yet built large balance sheets.

The PPDA is also offering a discounted registration fee of Shs50,000 to help young suppliers get onto the government's procurement system.

The reforms are part of a broader push to widen participation in public procurement, positioning young entrepreneurs to compete for a larger share of government spending.

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