An investigative study into the impact of the newly introduced procurement policy on the supply chain departments in Namibia

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Date
2022
Journal Title
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Publisher
University of Namibia
Abstract
The study investigated the impact of the newly introduced procurement act on the supply chain departments in Namibia. The Public Procurement Act, 2015 (Act No. 15 of 2015) was enacted and came into effect on 01 April 2017. The act aims to increase transparency and accountability. The Namibian government uses public procurement to achieve socio-economic objectives, which are commonly referred to as horizontal policies. This practice is a widely accepted tool of public procurement and has been around for a long time and includes objectives such as poverty alleviation by reducing the unemployment rate and providing equal opportunities to groups from previously disadvantaged communities such as women and youth through economic empowerment. The mixed methods research design was used in this study. Purposive sampling was used to select employees from finance and procurement departments. The study established that 40% of the respondents were male while 60% were female. In addition, 80% of the participants indicated that the procurement act had improved the processes of selecting suppliers, while 20% of the respondents thought there was no improvement. A total of 40% of the respondents indicated that the effectiveness of the procurement act was high, and 30% indicated that it was just average. Conversely, 15% of the respondents indicated that it was low, 5% indicated that it was very low, and 5% indicated that it was very high. The study also established that the Government should invest in appropriate information and communication technology such as databases on goods and services prices to support procurement officials in their daily work and decisions. A key challenge in Namibia has been the need to define an adequate level of transparency to ensure fair and equal treatment of providers and integrity in public procurement, given that transparency in public procurement bears an immediate cost for government and bidders. The recommendations drawn from the research were that there should be promotion and enhancement of transparency regarding preferential procurement policies, determinants, and related information for the public and promotion of inclusion of new entrants in the supplier value chain
Description
A thesis submitted in partial fulfilment of the requirements of the master of business administration finance degree
Keywords
Procurement policy, Namibia, Public procurement, Supply chain
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