A Strategic Framework for Enhancing Procurement Planning in Ghana’s Public Procurement Institutions

Abstract

Public procurement is a key instrument through which governments deliver development objectives and meet the needs of their citizens. To enhance its effectiveness, various reforms have been implemented globally, particularly in developing countries such as Ghana. Despite these efforts, several challenges continue to impede the public procurement process, especially at the planning stage. Procurement planning covering goods, works, and services involves making strategic decisions that influence future procurement activities. Although it is a critical component for the success of the overall procurement process, procurement planning has often been overlooked by public procurement entities, particularly within the local government sector.

This study aimed to develop a framework to improve procurement planning practices in public procurement entities in Ghana. A qualitative research approach was adopted, with primary data collected through unstructured and semi-structured interviews conducted face-to-face with key stakeholders. These interactions enabled the collection of in-depth data on current procurement planning practices across selected entities. Additionally, a review of relevant literature was conducted to identify existing challenges within procurement planning. The target population for the study comprised procurement officers from all six (6) Metropolitan Assemblies in Ghana. The qualitative data obtained was analysed using thematic analysis, which facilitated the identification of patterns and insights. The findings revealed eleven (11) distinct stages involved in the current procurement planning process used by entities to develop their annual procurement plans. Furthermore, the study identified sixteen (16) challenges associated with procurement planning.

These challenges include, but are not limited to: limited familiarity with procurement regulations, undue influence on procurement methods, poor records management, weak inter-departmental coordination, exclusion of key personnel from the planning process, low ethical standards, small or restrictive procurement thresholds, and legislative loopholes. Interestingly, the study found that some of these challenges are themselves symptoms of underlying root causes. These root causes were categorised into five broad areas: organisational, professional, political, legislative, and economic/market-related conditions.

Moreover, it was observed that essential elements such as sustainable procurement planning and risk management are currently absent from the procurement planning process, further compounding existing challenges. Based on these findings, the study concludes that procurement planning should be undertaken by a multidisciplinary team comprising relevant personnel at the start of every financial year. It is recommended that the Public Procurement Authority intensify its training programmes on procurement processes and ensure that sustainable procurement planning and risk management are systematically integrated into the procurement planning framework.