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Public Procurement in Somalia

Public procurement in Somalia is a critical instrument for state-building, service delivery, and economic stabilization. In a post-conflict and fragile institutional environment, government procurement plays a central role in financing public administration, reconstruction activities, and donor-supported development programs.

The procurement system is governed by a national legal framework that establishes standardized procedures, oversight mechanisms, and safeguards to ensure transparency, competition, and value for money. While institutional capacity continues to evolve, procurement remains a key channel through which both domestic and international suppliers engage with the Somali public sector.

For contractors, consultants, and suppliers, government tenders in Somalia offer access to essential public spending in infrastructure, goods, and services - often in coordination with international financial institutions and development partners.

Country & Economic Overview

Public Procurement Governance Framework

• Public Procurement Authority: Department of Public Procurement
• Institutional Host: Ministry of Finance
• Official Website: http://www.mof.gov.so/public-procurement
• Role: Policy implementation, regulatory oversight, and guidance for public procurement activities

The Department of Public Procurement is responsible for administering procurement regulations, issuing standard bidding documents, and supporting procurement implementation across federal institutions.

Legal & Regulatory Framework

Somalia’s public procurement system is governed by a dedicated legal framework that regulates procurement, concessions, and asset disposal for public entities.

• Public Procurement, Concession and Disposal Act (2015)
• Public Procurement Act (2020)
• Public Procurement Regulations

Procurement Procedures & Thresholds

Somalia’s procurement law defines multiple procurement methods, including open competitive bidding, restricted bidding, request for quotations, and direct contracting, depending on contract value and circumstances.

• Tender thresholds and direct contracting limits are defined in Schedule 3 (Thresholds)
• Standstill period applies prior to contract signature (Article 68)
• Bid validity requirements are defined under Article 77
• Complaints are reviewed by an Independent Procurement Review Panel

E-Procurement System Overview

Somalia does not yet operate a fully centralized national eProcurement system. Procurement processes are primarily conducted through manual or semi-digital methods, particularly for donor-funded projects.

• No mandatory national eProcurement platform in operation
• Electronic procurement tools are used selectively in donor-supported programs
• World Bank-funded projects follow donor procurement systems

Procurement Market Characteristics

• Procurement focuses on essential goods, works, and basic public services
• Strong role of donor-funded and development-partner-supported procurement
• Domestic suppliers benefit from statutory domestic preference provisions
• International participation is common in infrastructure and consultancy contracts

Procurement volumes are largely influenced by fiscal capacity and external financing, with significant engagement from international development institutions.

Transparency, Complaints & Oversight

The procurement law establishes review and oversight mechanisms aimed at ensuring fairness and accountability.

• Complaint Review Body: Independent Procurement Review Panel
• Complaint Resolution: Article 165 of the Procurement Act
• Disclosure: Contract award disclosure governed by Schedule 3 thresholds

Sustainability & Green Public Procurement

Sustainability considerations are recognized within the legal framework through provisions related to procurement method selection and contract evaluation. However, Somalia does not currently operate a formal green public procurement strategy or mandatory environmental procurement criteria.

• No national green procurement roadmap in force
• Environmental considerations may be applied on a case-by-case basis
• Donor-funded projects often include environmental safeguards

Social & Ethical Procurement Considerations

• Legal provisions allow for domestic supplier participation and preference
• Procurement law references fairness, equity, and transparency principles
• No dedicated statutory quotas for women-owned or disadvantaged-group-owned businesses
• Labor and ethical standards are typically addressed through contract conditions

Key Challenges & Practical Insights for Bidders

• Institutional capacity and administrative consistency vary across entities
• Many high-value tenders are linked to donor-funded programs
• Understanding Schedule 3 thresholds is essential for bidding strategy
• Local partnerships can significantly improve bid responsiveness
• Advance planning is recommended due to procedural and logistical constraints

Public Procurement in Somalia is evolving within a challenging operating environment, yet it remains a vital mechanism for reconstruction, public service delivery, and development financing. For suppliers and contractors, success depends on regulatory familiarity, donor-aligned compliance, and strong local engagement.