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Djibouti seeks to open public contracts to more small businesses

By , based on Adi

Djibouti seeks to open public contracts to more small businessesITU Pictures from Geneva, Switzerland · CC BY 2.0

Acting Prime Minister Ali Hassan Bahdon announced a reform of Djibouti’s public procurement system aimed at strengthening transparency, digitalisation and small businesses’ access. At the opening of the National Symposium on Public Procurement, he also outlined regulatory progress and the start of operations of the Dispute Resolution Committee, according to ADI.

The Djiboutian government wants to change public procurement rules to increase transparency, make greater use of digital tools and facilitate access for small businesses. Acting Prime Minister Ali Hassan Bahdon set out these priorities on Wednesday 21 October at the opening of the National Symposium on Public Procurement, the Djiboutian Information Agency (ADI) reports.

The average time to award a contract fell from 35 days in 2021 to 26 days in 2023. In 2024, more than 71% of public contracts were awarded to Djiboutian companies, Ali Hassan Bahdon said. He described these results as encouraging but insufficient.

The announced measures include splitting contracts into lots, tailoring requirements to small businesses, supporting first-time bidders and reducing payment times. The government is also due to consider a draft decree on bank guarantees shortly.

The reform is part of the National Public Procurement Strategy to 2030, incorporated into Djibouti Vision 2035. The acting prime minister presented public procurement as a lever for development and called for poorly planned spending and procedures with little competition to be limited.

Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.

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