Dar es Salaam. Tanzania’s public procurement system has taken a significant step towards full digital transformation following the launch of a new service enabling real-time verification of bank guarantees submitted by bidders for government tenders.
The initiative, introduced through a partnership between the Public Procurement Regulatory Authority (PPRA) and NMB Bank, integrates the bank’s systems with the National e-Procurement System of Tanzania (NeST), allowing procurement entities to confirm the authenticity of guarantees instantly through the online platform.
Speaking during the launch event in Dar es Salaam on March 5, 2026, PPRA Director General, Dennis Simba, said the move reflects the government’s broader push to strengthen transparency, efficiency and accountability in the management of public resources through digital technology.
He said the development aligns with President Samia Suluhu Hassan’s vision of building an inclusive economy by ensuring public systems are modernised and capable of delivering services efficiently.
“Public procurement is far more than a transaction between a buyer and a supplier. It is a strategic economic instrument that influences national development and the growth of businesses,” Mr Simba said.
“For this reason, the process must be managed with the highest standards of transparency, efficiency and technological innovation.”
He explained that the government had directed public institutions to ensure that their digital systems are interconnected in order to simplify service delivery and improve the business environment.
In response to that directive, PPRA has continued upgrading the NeST platform and expanding its integration with systems operated by other institutions, including banks.
The latest integration allows bank guarantees submitted by bidders to be verified digitally through NeST, eliminating the need for manual confirmation processes that previously involved exchanging documents and formal letters between banks and public entities.
“Today we are witnessing the official integration of the NeST platform with NMB Bank’s system, enabling the digital submission and verification of bank guarantees without the administrative hurdles that characterised earlier processes,” Mr Simba said.
Under the new arrangement, bidders participating in government tenders will only need to enter the guarantee number issued by their bank into the NeST platform.
The system will automatically retrieve the guarantee details from the issuing bank and transmit them to the procuring entity for verification.
Mr Simba said this mechanism allows procurement officers to confirm critical information, including the authenticity of the guarantee, its value, validity period and its linkage to a specific tender.
He noted that the change will significantly reduce the risk of document forgery while improving the credibility of procurement processes.
“For many years, bank guarantees were issued and handled in paper form, which created several challenges, including delays in verification, additional administrative costs and vulnerability to fraud,” he said.
“The digital verification system addresses these challenges by providing an efficient and secure mechanism for confirming guarantees within the procurement process.”
He added that all government procurement procedures are currently conducted through the NeST platform, which is already connected with more than 20 institutions across the public and private sectors.
Beginning in March 2026, bidders who are customers of NMB Bank and are using the NeST system will be able to submit bank guarantees digitally through the platform.
In the initial phase, the service will cover tender security guarantees, performance guarantees and advance payment guarantees.
Mr Simba said the innovation will reduce the need for procurement entities to contact banks individually to verify submitted guarantees, a process that previously consumed considerable time and resources.
“This reform will shorten verification timelines, strengthen compliance with procurement regulations and reinforce confidence in the public procurement system,” he said.
NMB Bank Managing Director and Chief Executive Officer Ruth Zaipuna said the partnership demonstrates how financial institutions can support national development by introducing technology-driven financial solutions.
She explained that the verification of guarantees previously took several days because it required physical documentation and correspondence between institutions and banks.
She said through the integrated system, verification will now be completed within minutes instead of several days.
She added that public procurement remains a key pillar of economic activity in Tanzania, involving corporations, contractors, suppliers and small and medium-sized enterprises competing for government projects.
By introducing digital guarantee verification, she said, the system will accelerate tender participation, reduce paperwork and minimise compliance risks for businesses.
The bank has also invested heavily in modern information technology systems to ensure that financial transactions and sensitive data remain secure while supporting the country’s transition towards a digital economy.
Ms Zaipuna noted that the new service is expected to benefit businesses in sectors such as construction, supply and services by enabling faster tender processing and reducing administrative burdens.
She said NMB is honoured to be the first bank in Tanzania to integrate its systems with NeST for digital verification of bank guarantees.
