Eight ways new procurement policy seeks to green Rwanda’s economy

A Sustainable Public Procurement Policy Framework for Rwanda, which the Cabinet approved last week, seeks to promote green growth across all sectors of the country’s economy, according to the document. Sustainable public procurement means a process whereby public entities meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to them, but also to society and the economy while minimising damage to the environment. The policy introduces a comprehensive principle of sustainability in public procurement, which integrates environmental, social, and economic considerations throughout the procurement process to achieve value for money on a whole-life basis. ALSO READ: Rwanda implements comprehensive reforms to enhance transparency, combat corruption in public procurement In the foreword to the policy, Prime Minister Edouard Ngirente described it as a ground-breaking initiative that aims to integrate environmental, social, and economic considerations into public procurement processes. “This policy represents a significant milestone in our journey towards sustainable development and demonstrates our unwavering commitment to responsible and efficient use of public resources,” he said. “By giving preference to goods, services, and works that minimise negative environmental impacts, foster social equity, and support economic growth, we aim to create a ripple effect that encourages sustainable production and consumption patterns throughout our economy,” he said. He also expressed confidence that it “will serve as a catalyst for positive change, inspiring innovation, and setting a new standard for public procurement in Rwanda and beyond.” The development of Rwanda's SPP Policy was a collaborative effort involving various stakeholders to create a framework for integrating sustainability considerations into public procurement processes, according to the document. The policy was drafted by a team of international and local experts led by the consultancy firm Arkatay Consulting AB in Sweden, a company that offers consulting services with the aim of realising strategies and ensuring sustainable success in changes and projects. 1. Compliance with purpose and scope – covering all public procurement entities The policy aims to integrate sustainability considerations into public procurement processes while aligning them with the country's long-term vision for sustainable development and the Rwanda Public Procurement Authority's (RPPA) ambition to become a regional leader in public procurement. It applies to all public procurement entities at the national and sub-national levels, making sure that sustainability considerations are integrated throughout the Rwandan society. 2. Leveraging public sector as a significant purchaser of goods and services The rationale for implementing SPP Policy in Rwanda is grounded in six key arguments, including economic impact, environmental and social sustainability, economic opportunities, support for small and medium enterprises (SMES), social benefits, and long-term benefits. Regarding economic impact, it indicated that public procurement accounts for approximately 13.5 per cent of Rwanda's GDP (citing World Bank data as of 2020). Leveraging this significant purchasing power through SPP can drive sustainable practices and stimulate markets for sustainable products and services without requiring additional financial resources, according to the blueprint. It indicated that as an important purchaser of goods, services, and works, the public sector has a crucial role to play in driving the transition towards more sustainable patterns of consumption and production. ALSO READ: MPs urge for inclusion of under four-star hotels in public tenders 3. Environmental and social sustainability SPP Policy is a critical tool for achieving Rwanda's environmental sustainability goals and promoting social equity. By prioritising the procurement of low-carbon, energy-efficient, and socially responsible goods and services, SPP directly contributes to national targets for reducing greenhouse gas emissions, such as Rwanda's commitment to reduce emissions by 38% compared to business-as-usual by 2030 (Republic of Rwanda, 2020). 4. Green economic opportunities As per the document, SPP can generate significant economic benefits by supporting the growth of local sustainable businesses, stimulating innovation, creating green jobs, and enhancing the competitiveness of Rwandan businesses in both domestic and international markets. 5. Long-term benefits Implementing SPP is expected to yield significant long-term benefits for Rwanda, including reduced environmental impact, waste reduction, stimulation of sustainable markets, promotion of social equity, and sustainable economic development, aligning with Rwanda's Vision 2050 (MINECOFIN, 2020). 6. Alignment with Rwanda's sustainable development priorities The SPP Policy is aligned with and supports the implementation of Rwanda's key sustainable development policies and strategies, including Vision 2050. Vision 2050 (MINECOFIN, 2020) outlines Rwanda's aspirations to become an upper-middle-income country by 2035 and a high-income country by 2050, with a focus on sustainable and inclusive growth. The SPP Policy supports Vision 2050's goal of developing a green and resilient economy. Vision 2050 states that growth and development will follow a sustainable path in terms of use and management of natural resources while building resilience to cope with climate change impacts. It is intended to promote the sustainable management of natural resources by prioritising the procurement of environmentally friendly goods, services, and works that minimise negative impacts on ecosystems, biodiversity, and resource availability. By encouraging the adoption of circular procurement practices, such as the use of recycled materials, the reduction of waste, and the improvement of end-of-life management, the policy helps to conserve natural resources and reduce the environmental footprint of public procurement activities. Furthermore, by stimulating market demand for sustainable products and services, the SPP Policy incentivises businesses to adopt more resource-efficient and environmentally responsible practices. This, in turn, drives innovation and investment in sustainable technologies and solutions that contribute to the long-term sustainability of Rwanda's natural capital. Another key strategy is the Revised Green Growth and Climate Resilience National Strategy for climate change and low carbon development (GGCRS) (Republic of Rwanda, 2022), which outlines Rwanda's approach to achieving sustainable economic growth while addressing climate change and environmental challenges. ALSO READ: Rwanda revises green growth strategy The SPP Policy directly supports the implementation of several key programmes and targets in the GGCRS, including through green industrialisation and trade. To this end, the policy encourages the procurement of low-carbon goods, services, and infrastructure, contributing to the GGCRS objective of resource-efficient infrastructure and physical capital to drive green industrial and trade growth. 7. Prioritised product categories based on Market Readiness Analysis The development of Rwanda's SPP Policy was informed by a comprehensive Market Readiness Analysis (MRA) conducted from January to August 2024, which aimed to assess the capacity of the market to supply sustainable goods and services to respond to the government's SPP objectives and to identify opportunities and challenges for implementing SPP in Rwanda. Based on the findings of the MRA, the SPP Action Plan identifies eight prioritised product categories. Of these categories, four have been selected as initial products for the pilot phase of SPP implementation, a pilot phase [expected from October 2024 to June 2025]. They are computers; water dispensing solutions; eco-friendly vehicles, including hybrid and electric vehicles; and sustainable paper, including recycled and forest-certified paper supplies. The initial products have been selected based on their potential for rapid implementation and the availability of relevant guidelines at international and continental levels. The other four product categories are strong candidates for SPP, recommended by leading institutions and shall be considered for the next sequence of products in the SPP implementation plan and shall be supported by a second round of market analysis, where necessary. They are organic fertilisers, including waste management within agriculture; energy-efficient electrical devices, including LED lighting, air conditioning units, and electrical transformers; sustainable construction and building management, including green housing initiatives; and sustainable furniture, sourced from sustainably managed forests. 8. Integrating SPP performance criteria and indicators into Imihigo performance contracts The SPP performance criteria and indicators will be integrated into Imihigo performance contracts at national and district levels. Each entity's progress towards these targets will be monitored through the Imihigo process, and results will be factored into the national evaluation of government performance. This ensures that SPP objectives are included in the annual performance targets of procuring entities, promoting accountability and enhancing stakeholder commitment, as per the policy.

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Eight ways new procurement policy seeks to green Rwanda’s economy