Abstract:
During the financial years 2019/20 and 2020/21, audited public entities did not set aside the mandatory 30% annual procurement volume for preferential procurement for minority-owned businesses. Thus, the study investigated the factors that influence the adoption of preferential procurement by public entities in Tanzania. The study adopted a descriptive cross-sectional design to explain the factors that influence the adoption of the preferential procurement scheme. Data was collected using a questionnaire from 122 procurement practitioners in public entities. The collected data were quantitatively analyzed. The results show that all aspects under perceptions of performance ability, internal facilitating conditions, and legislative framework clarity were significantly [p 0.05] influencing the adoption of the preferential procurement scheme. In light of the findings, the study concludes that the country isn’t exploiting the full advantages of preferential procurement in solving unemployment issues and alleviating poverty. Thus, public entities must develop a sound internal culture of commitment to social responsibility as a prerequisite to the effective adoption of preferential procurement. Also, the quality of legislative frameworks (Procurement Act, regulations, and implementation guidelines) should be improved with a focus on clarity on the implementation of preferential procurement.
