Ghana is entering a new era of digitization with the adoption of an electronic government procurement (e-GP) system known as GHANEPS. The system, developed with input from five pilot government entities, was launched by Vice President Dr. Mahamudu Bawumia in April 2019 and is being rolled out in phases with the goal of being fully implemented by the end of this year.
Improved Transparency and Efficiency
e-GP is a comprehensive process in which governments use information communication technology (ICT) to establish agreements for the acquisition of goods, works, and services. In Ghana, the implementation of GHANEPS is part of a wider Public Financial Management Reforms (PFMR) Programme. The system is expected to generate benefits for both government and the private sector, including increased transparency in government procurement, improved efficiency and effectiveness, and value for money.
By using real-time data analysis and the Open Data Contracting System, the e-GP system allows the government to improve its ability to analyze performance in capital budget spending, thus increasing transparency in procurement. The system also helps to streamline the procurement processes, leading to a reduction in the public procurement space. Additionally, the use of digital signatures for procurement documents, automated procurement systems, and other tools helps to eliminate fraud and corruption in the procurement process.
Lower Prices and Increased Opportunities
Another major benefit of e-GP is that it leads to lower prices of goods, works, and services due to increased competition. The system creates opportunities for small businesses that were previously unavailable in the manual public procurement process. Increased competition also improves efficiency and effectiveness, subsequently leading to achieving value for money and the detection of corruptive, collusive, fraudulent, and coherent practices.
Ghana is not the only African country adopting e-GP systems to improve public sector governance. Tanzania, Zambia, Zimbabwe, Kenya, Rwanda, and Tunisia are some of the countries that have adopted and implemented e-GP in Africa. Ghana, however, became the first country within the West Africa Sub Region to establish e-GP in 2019.
The adoption of e-GP in Ghana is a positive step towards improving transparency, efficiency, and value for money in government procurement. As the system continues to be rolled out and more entities are trained and supported in its use, it is expected to have a significant impact on the country’s public financial management and economic growth.
