For the first time, public contracts driven by innovation in Rwanda will be governed by specialised procedures rather than the standard public procurement framework, a shift that could significantly change how government institutions engage innovators and award solution-based tenders. The reform is set out in a ministerial order issued by the Ministry of Finance and Economic Planning on February 13, which establishes the modalities for awarding public tenders related to innovation. ALSO READ: Inside look: Some tough love-advice for Rwanda’s startup innovators The move is intended to help local innovators develop solutions to national challenges while easing their access to government procurement opportunities. Under the order, innovation is defined as a new idea, product, process, or service transformed into a solution that creates value for citizens and the country. Stakeholders in Rwanda’s start-up and innovation ecosystem have welcomed the change, saying it could accelerate innovation-led development and reduce dependence on foreign solutions. They argue that the new framework addresses longstanding challenges such as rigid procurement rules, limited access for local firms, and competition from large international companies. A key feature of the order is the introduction of the design contest method, outlined in Article 8. Under this approach, government institutions can define a public challenge and invite innovators to submit solution-based proposals, including technical designs, prototypes and financial offers. ALSO READ: How Rwanda’s digital hub project could boost tech startups Contracts are no longer awarded solely on predefined technical specifications but on the quality and effectiveness of proposed solutions. Angelo Gitego, chief executive of Xanahealth (formerly IvuliroTech), said local innovators have long struggled to access government contracts due to strict tender requirements that favoured foreign firms. As a result, he noted, many large government projects—including multi-million-dollar initiatives such as the Integrated Electronic Case Management System (IECMS) for the Ministry of Justice have been implemented almost exclusively by foreign companies. ALSO READ: How far are we from having a Startup Act? “The previous tendering system required huge investments and resources,” Gitego said. “You would see a government tender, and very few local companies could meet the requirements. Because of that, most government projects ended up being executed by foreign firms, simply because they were the only ones meeting the technical and material standards.” He pointed to a pilot by the Ministry of Health, which used the design contest approach to invite local innovators to develop a platform for licensing new clinics. “The pilot showed that when given the opportunity, local companies can deliver high-quality and effective solutions,” Gitego said. “This order is a significant step toward removing barriers that have long held back Rwanda’s tech and innovation sector and opening doors for young innovators.” The order allows procuring entities to adopt competitive and innovative procurement processes aimed at securing the most effective solution to a defined challenge. A central element is the commitment by procuring institutions to pay for an innovative solution once it meets the requirements outlined in the request for solutions. Jack Butera, chief executive of JaBu Clothing & Art Brand, said the new approach could unlock opportunities for creative and small enterprises that have traditionally been excluded from public tenders due to high financial and technical thresholds. “Winning public tenders has traditionally been expensive, and payments often took a long time, which discouraged many small businesses,” Butera said. “In the past, I would not even consider bidding, especially when tenders required large quantities like thousands of T-shirts, which demand significant upfront capital.” He added that assurances of earlier payments and more flexible procedures could change that dynamic. “With payments likely to be made earlier and processes becoming more accessible, I am now more confident to participate,” he said. “It gives small brands like ours a chance to compete, grow, and continue refining our creative and production capacity.” The order further requires that selection criteria for innovators be clearly defined to ensure transparency and fairness. Importantly, it allows local companies to compete even without prior international project experience, a major shift from previous rules that often required proof of delivering large-scale projects, forcing local firms to partner with foreign companies to qualify. Overall, stakeholders say the new framework could mark a turning point in how Rwanda harnesses local innovation to meet public needs.
