Namibian developers are building impressive technical solutions that could modernise government services and boost our digital economy.
Instead of embracing these innovations, our procurement framework forces them into bureaucratic mazes designed for buying office supplies, not fostering technological advancement.
The problem starts with a shockingly low threshold: any technical solution worth more than N$15 000 must go through competitive tender processes. That’s barely enough to buy a decent laptop, yet it’s the ceiling for direct procurement without formal competition.
Above this minimal amount, even the most innovative, purpose-built solution must compete against generic alternatives in processes designed for “readily available goods” rather than bespoke innovations.
Consider this scenario: A local developer creates software that perfectly addresses a ministry’s data management challenges.
Implementation costs N$50 000, reasonable for custom software.
Under current rules, that developer cannot simply demonstrate the solution and negotiate a direct contract.
Instead, the ministry must advertise for quotations, inviting competitors who may offer inferior, off-the-shelf products at lower prices.
The original innovator, despite solving the exact problem, faces uncertainty about whether their tailored solution will survive a process that prioritises cost over innovation.
This isn’t just theoretical.
DEEPER ISSUES
The Public Procurement Act allows direct procurement only in narrow circumstances: when goods can be supplied by one source only, for interoperability with existing systems, or when a supplier has unique qualifications.
But these exceptions require documented justifications that public entities are often reluctant to make, fearing later scrutiny.
The regulatory architecture reveals deeper issues.
The 2015 Act created central oversight through the Central Procurement Board and Procurement Policy Unit, improving transparency and reducing corruption.
However, implementation has struggled with capacity constraints and rigid adherence to competitive processes that work well for commodity purchases but poorly for innovation procurement.
Solutions costing between N$15 000 and N$2 million face Request for Quotations processes. Above N$2 million, they encounter even more complex tender requirements.
At every level, the system treats innovation as an exception rather than an opportunity.
This matters because technical solutions rarely fit neat procurement categories.
Innovators offer integrated packages combining software, hardware, professional services, and ongoing refinement.
The procurement framework’s focus on predefined specifications and standardised evaluation criteria struggles with solutions that create value through customisation and iterative improvement.
SMART SOLUTIONS
International practice shows better approaches.
Organisation for Economic Co-operation and Development (OECD) countries use innovation procurement procedures that allow competitive calls for solutions rather than fully specified products.
Innovation partnerships enable staged procurement where government selects partners to co-develop solutions.
Outcome-based specifications let bidders propose innovative means to meet functional requirements rather than rigid technical specifications.
Namibia could adopt similar reforms without sacrificing transparency or value for money.
Practical steps include introducing “innovation procurement” procedures in regulations that permit competitive calls for solutions while maintaining fair competition.
The Central Procurement Board could run structured “calls for solutions” with transparent evaluation criteria focused on outcomes rather than specifications.
Pilot innovation partnerships could demonstrate how the government can co-develop solutions with local providers while maintaining competitive selection processes.
Accelerating e-procurement would help innovators identify opportunities faster and reduce administrative barriers.
THE CHALLENGE
The current system’s unintended consequences extend beyond individual procurement decisions.
Promising developers may redirect their efforts toward international markets or abandon innovation for easier commodity businesses.
The government misses opportunities to modernise services while the local tech ecosystem loses momentum.
This isn’t about weakening procurement oversight or returning to discretionary purchasing.
Strong procurement systems can embrace innovation while maintaining transparency and preventing corruption.
The challenge is creating pathways for innovative solutions within structured, accountable processes.
The solution requires modest regulatory changes backed by clear guidance to procurement officers.
With pilot projects demonstrating successful innovation procurement, Namibia could transform its approach within months rather than years.
THE CHOICE
The government faces a choice: maintain a system designed for predictable purchases while innovation happens elsewhere, or adapt procurement to become a tool for technological advancement and economic development.
The current framework, focused on preventing past problems, risks creating new ones by stifling the very innovation needed for Namibia’s digital future.
The country’s entrepreneurial talent deserves procurement policies that reward problem-solving rather than penalise it.
That means raising thresholds for direct procurement of innovative solutions, creating structured pathways for custom development, and training procurement officers to evaluate outcomes rather than just specifications.
A smart procurement policy can simultaneously protect public resources and catalyse innovation. It’s time for Namibia’s framework to do both.
– Timo Neisho is an information technology practitioner with over 15 years of experience in software development, enterprise systems and digitalisation. The views expressed in this article are entirely his own.
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