Government Demand and Domestic Firms Growth: Evidence from Uganda research project

Government Demand and Domestic Firms Growth: Evidence from Uganda

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CompletedPublic Procurement

This project examines how participation in public procurement influences the growth, investment decisions, and market behaviour of domestic firms in Uganda.

Government Demand and Domestic Firms Growth: Evidence from Uganda research project

Project overview

Building on evidence that firms supplying goods and services to government agencies often experience sustained growth, the study investigates how increased government demand affects firms' production capacity, investment decisions, pricing strategies, and access to finance.

Using survey data collected from firms participating in public procurement across Kampala, Wakiso, and Mukono, the research explores the broader role of government contracting in promoting private sector development. Particular attention is given to understanding why firms awarded government contracts often reduce sales to private-sector customers and whether public procurement serves as a catalyst for increased competitiveness, innovation, export participation, and long-term business expansion.

Research impact

The study provides important evidence on how public procurement can stimulate enterprise growth and industrial development. Its findings inform policies aimed at leveraging government purchasing to strengthen domestic firms, improve competitiveness, promote investment, and accelerate private sector development in Uganda.