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They leveraged Paraguay’s high quality, publicly accessible open contracting data to measure the existing participation of these smaller businesses and to understand their challenges in working with government buyers. Fewer than 300 MSMEs participate in a procurement market worth almost US$3 billion annually.
Publicprocurement is like the heartbeat of public spending in most of Africa – by some estimates, it accounts for 17% of the GDP of African Countries. The legal framework as well as the creation of procurement oversight agencies led to more accountability, with a clear set of rules as well as checks and balances.
Since launching their platform in 2020, Diegues and Blanco have built a set of digital tools and data analytics services that have bridged the gap between more than 250 private sector users and publicprocurement buyers in six countries across Latin America. According to the World Bank, public contracts account for 15% of global GDP.
But when it comes to publicprocurement, they represent less than 5% of vendors participating in the system in the last 3 years, according to official data. Perhaps unsurprisingly, we learned that entrepreneurs perceived publicprocurement as closed off to them, both because of legal but also illegal barriers.
Importantly, the top three layers are centralised and the European Commission has responsibility (and funding) for developing them, while the bottom data layer is decentralised, with each Member State retaining responsibility for digitalising its publicprocurementsystems and connecting its data sources to the PPDS.
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