Rwanda’s public procurement system is under heightened scrutiny as authorities intensify sanctions against contractors who fail to deliver on public projects, signaling a tougher stance on accountability amid the country’s ambitious development agenda.
Since 2021, at least 103 companies have been blacklisted for poor performance, contract breaches, and submission of false information, according to data from the Rwanda Public Procurement Authority (RPPA).
Blacklisting—which can range from 12 months to permanent exclusion — bars companies and their directors from participating in all public tenders.
The rising number of sanctions highlights persistent weaknesses in contract execution at a time when Rwanda is investing heavily in infrastructure, ICT, education, and healthcare.
Among the recently sanctioned firms is ARENEX Ltd, which failed to execute a Rwf30 million contract awarded by the University of Rwanda (UR) for the supply of computers and agricultural irrigation drones.
ARENEX Managing Director Jean Nepomscene Hagenimana attributed the failure to unrealistic pricing assumptions during bidding.
“We later realized that the computers and drones required were far beyond what the bid assumed,” Hagenimana said.
“The procurement department set prices without considering real market costs, making it impossible for us to deliver.”
RPPA suspended ARENEX from public procurement for one year and imposed a fine equivalent to 5% of the total contract value.
Harsher Penalties:
In contrast, Extension Engineering Company Ltd and its Managing Director Ritararenga Didace received a five-year ban following poor performance on construction and rehabilitation works under a project by the Institute of Legal Practice and Development (ILPD).
The sanction was issued under Decision No. 589/2021/BD/D, adopted on June 3, 2021, in line with Articles 176 and 178 of Law No. 62/2018 governing public procurement.
Repeat violations attract even stiffer consequences. Bizimana Alphonse and his firm G&B Investment Group Ltd were permanently debarred after a second sanction, as the law provides for lifetime exclusion from public procurement for repeat offenders.
False Information a Major Concern:
RPPA statistics show enforcement has accelerated in recent years. While more than 100 firms have been blacklisted over the past seven years, over 90 were sanctioned in the last four years alone.
Notably, 62 out of the 103 cases—more than 60%—stemmed from contractors submitting false information in their bidding documents, raising concerns about integrity in the procurement process.
Procurement experts warn that the consequences extend far beyond individual firms. Failed contracts delay the delivery of roads, schools, and health facilities, directly affecting citizens and forcing government institutions to spend additional resources restarting stalled projects.
According to Théogène Hakizimana, Managing Director Hakim Ltd , many failures originate from poor bidder judgment.
“Some entrepreneurs focus only on winning the tender without fully understanding the workload involved,” he said, adding that delayed payments and corruption pressures can also undermine project execution.
RPPA Director General, Jimmy Christian Byukusenge, citing Law No. 031/2022 of 21/11/2022, emphasized that all sanctions are grounded in law and follow due process.
Before any penalty is imposed, RPPA conducts investigations and gives accused contractors the opportunity to be heard. Contractors are cleared if failures are proven to result from hindrances caused by procuring entities—though RPPA says no such cases have yet been recorded.
As Rwanda accelerates its development drive, the growing blacklist sends a clear message: winning a public tender is no longer enough—capacity, honesty, and delivery are now non-negotiable.
