The World Bank is pressing Malawi to accelerate its adoption of digital procurement systems as a critical tool for boosting government efficiency, cutting costs, and enhancing transparency. Speaking at the Malawi Institute of Procurement and Supply (Mips) annual conference, World Bank country director Firas Raad highlighted how e-procurement can convert scarce resources into tangible outcomes.
Raad underscored that procurement in many countries can account for as much as 10% to 30% of their gross domestic product (GDP). He cited evidence from nations that have digitized their procurement processes, showing significant savings and improved service delivery. The World Bank’s $80 million Fiscal Governance Programme for Results in Malawi, for instance, has already demonstrated a 40% reduction in the average time to award competitive procurement contracts, directly addressing delays that inflate costs.
“Improving planning, tendering and contract management saves time and money,” Raad said, adding that digital government procurement has repeatedly delivered savings and reliability, with cross-country evidence suggesting efficiency gains of 10% to 12% from full adoption.
The Public Procurement and Disposal of Assets Authority (PPDA) is already on this path. Director General Eddington Chilapondwa noted that the new PPDA Act of 2025 formally recognizes e-procurement as legitimate and mandates the use of the Malawi National Electronic Procurement System.
Chilapondwa emphasized that the shift to digital platforms will facilitate broader participation, particularly for micro, small, and medium enterprises (MSMEs). A key feature of the new system, the e-marketplace, is specifically designed to support these smaller businesses, ensuring they have greater access to public funds, which account for more than 50% of the government’s budget.
Mips board chairperson Tisungeni Kandulu also voiced support, stating that the organization fully embraces digital procurement for its transparency benefits and wants all public institutions to launch their own e-procurement strategies. As of now, 32 government entities have been onboarded to the new digital system.
