Public Procurement as a Market and Financing Solution for Small and Medium Local Timber Producers and Processors in Tanzania

Abstract

In Tanzania, and across much of Africa, the potential impact of public procurement on sustainable growth of the local timber industry is not well understood. This is due to limited awareness of the local timber industry by government agencies responsible for public procurement, and vice versa. As a result, this existing gap hinders the opportunity for timber-based Small and Medium Enterprises (SMEs) to access the public procurement market to grow sustainably, meet their operational costs, develop effective business skills, or purchase new technology for improved productivity. However, the current domestic timber industry in Tanzania is undermined by timber and furniture imports destined for public funded projects and contracts. This article aims to address the knowledge gap and identify opportunities that might arise, by including the local timber industry, particularly timber-based SMEs, in the public procurement process in Tanzania. The article draws on lessons from the implementation of public procurement processes in Tanzania as they relate to the timber industry, and from the use of globally recognized Timber Procurement Policies (TPP) in Central Africa and Europe. It uses qualitative data derived from existing literature and workshop reports related to public procurement, timber trade and SMEs in Tanzania. The findings suggest that through TPP, public procurement can offer immediate and long-term market opportunities for timber-based SMEs, if a number of crucial policy and regulatory reforms are implemented.