Public Procurement Challenges in Emerging Markets: Insights from Zambia’s Ministry of Health

Memory Mawini Ntaimo, upe Getrude Mutono-Mwanza and Chikusela Sikazwe
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Memory Mawini Ntaimo: University of Zambia, Zambia
upe Getrude Mutono-Mwanza: University of Zambia, Zambia
Chikusela Sikazwe: University of Zambia, Zambia

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: This paper examines challenges in public procurement in Zambia's health sector. The study employed a desk review approach, utilizing public procurement legislation, policies, and anecdotal evidence as data sources. The study established that although the Public Procurement Act (PPA) No. 8 of 2020 was enacted in repealing and replacing the PPA No. 8 of 2008, there has been no well-documented improvement in the sector to the effect that empirical evidence still indicates rampant prevalent of medicines' and medical supplies' artificial stock-outs, corruption in bidding processes, unwarranted delays in medical supply chain purchases, and pilferages of drugs. As a testament to the challenges, as of July 2024, the Drug Enforcement Commission (DEC) unearthed a scam in which public medicines and medical supplies valued at US$24 million were being kept at a private depot in Lusaka for seven months after being delivered in unlawful circumstances. These daunting challenges have led to the US Government's withdrawal of over ZMW 1.4 billion in annual financing to the sector. The study concludes that supply chain challenges in emerging markets are prevalent and require urgent attention to ensure the health of the masses. The study recommends a paradigm shift in the procurement systems, policies, processes, and supply chains of medicines and medical supplies in the health sector to improve healthcare delivery in the country.

Keywords: Public; Procurement; Emerging Markets; Zambia (search for similar items in EconPapers)
Date: 2025
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