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PROCUREMENT Enhancing Transparency In Procurement Crucial For SME Growth By Denis Mbau I n Africa and across the world, Small Medium Enterprises (SMEs) play a key role in the economy, contributing significantly to the GDP of the countries they operate in and creating about 80 percent of all job opportunities. However, SMEs face unique challenges in participating in fair processes to win government business due to lack of transparency, capacity to supply the needed services and goods, finance to bid for opportunities and knowledge on existing business opportunities. At the same time, large multi-national companies often have trouble accessing high quality domestic suppliers to meet their operational and contracting needs. In addition, corruption continues to be a blight across Africa inhibiting SMEs from participating in public procurement markets. According to the World Bank, USD $1 trillion is paid out in bribes in Africa while USD $2.6 trillion is lost annually through corruption. This is equivalent to more than 5 percent of the global GDP. Partnerships between public and private sector organisations are increasingly being formed to promote transparency in trade transactions and encourage greater participation, particularly from the SMEs in procurement. The African Partner Pool (APP), launched in April 2017 is an online technology platform that directly connects buyers to a pool of verified suppliers providing diverse products and services. Since its launch, the impact is already being felt with over USD $3,340,000 worth of business opportunities floated for the over 950 SMEs on the platform. APP simplifies the tendering process for companies, generates exposure of tender opportunities and reduces the cost and time spent acquiring suppliers. Lymies Engineering, a female owned company based in Nairobi, Kenya has won three tenders on the platform valued at KES 6.7 million. This has enabled the firm to consider expanding and recruit more staff. “The APP Platform has allowed Partnerships between public and private sector organisations are increasingly being formed to promote transparency in trade transactions and encourage greater participation, particularly from the SMEs in procurement. 76 MAL22/18 ISSUE Public procurement that provided the same level of inbuilt assurance, sys- temic checks and balanc- es and strict measures to ensure transparency, zero tolerance on cor- ruption, due process, zero or minimal fees to participate in tender in- clusion and lower ten- der requirements could grow the SME sector in Africa. us to access business opportunities from large businesses in the country, saving us time and resources and giving us access to business from companies we wouldn’t have accessed through conventional tendering processes,” said Millicent Maina, Director of Lymies Engineering. This increased transparency has enabled more SMEs in Kenya and Ghana access to business opportunities through levelling the procurement playing field and open contracting. The embedded transparency ensures that bids are won through merit and encourages entrepreneurship as opportunities become more accessible.