90 percent of NSSF contracts executed by local companies – Byarugaba
What you need to know:
Speaking during the NSSF Sixth Suppliers Forum in Kampala, Mr Byarugaba said, only 10 percent of the Fund’s contracts are executed by foreign firms with majority of the contracts going to Ugandans suppliers
At least 90 percent of National Social Security Fund (NSSF) contracts are executed by local suppliers, according to managing director Richard Byarugaba.
Speaking during the NSSF Sixth Suppliers Forum in Kampala, Mr Byarugaba said, only 10 percent of the Fund’s contracts are executed by foreign firms with majority of the contracts going to Ugandans suppliers.
“Our procurement report for the 2021/22 financial year indicates that local firms receive 90 percent of business from the Fund while only 10 percent goes to international firms,” he said.
However, he said, that whereas Ugandan suppliers receive the largest percentage, there was low uptake of high value contracts by local firms because of inadequate financing capacity, low technological adoption, price fluctuations of materials and inadequate skills, among others.
Therefore, Mr Byarugaba noted, there was need for local suppliers to develop long term business strategies that go beyond just participating in tendering to skilling workforces and enhancing management of complex projects.
This, he noted, could be achieved in the short term by establishing partnerships that will help supplier understand why they failed to win a bid.
NSSF, he further reveled, in its 10-year strategic plan will leverage on innovation to grow the Fund, key among which will involve extending coverage of the Fund across the country at a low cost and improving member experience.
NSSF will during the 2022/23 have a budget of more than Shs1 trillion, for which Mr Byarugaba said, local suppliers must compete to tap in.
The Fund will during the period spend Shs546.9b on real estate, Shs21.1b on IT systems and computer equipment, Shs2.4b furniture fixtures office equipment and Shs0.051b on motor vehicles.
Mr Byarugaba also indicated that NSSF had put in place initiatives that will support local firms to build capacity and competitiveness for better business opportunities.
The Forum is a platform through which NSSF updates suppliers on its programmes and business opportunities at the Fund.
Ms Catharine Tumusiime, the Uganda National Oil Company chief human resource officer, said local suppliers must develop capacity given the increase in opportunities in the oil sector.
For instance, she said investment opportunities for the local suppliers stood at up to $8b in Kingfisher under CNOOC, with at least 17 projects reserved for the local suppliers.