The new ministerial order on innovation-driven public procurement is more than a technical adjustment to tendering rules. It is a statement of intent: that national challenges should increasingly be solved by local minds, local enterprises and locally grown ideas. For years, government procurement has been one of the hardest doors for Rwandan innovators to open. Standard tender procedures were designed for established firms with deep pockets, long track records and the capacity to absorb high upfront costs. ALSO READ: Inside look: Some tough love-advice for Rwanda’s startup innovators In practice, this meant that many strategic public projects were executed by foreign companies, not necessarily because local solutions did not exist, but because local innovators could not pass the procedural threshold. By introducing specialised procedures for innovation-based contracts, the new order begins to correct that imbalance. Its most transformative feature is the shift from rigid technical specifications to challenge-based procurement. Instead of telling bidders exactly what to build, institutions can now define a public problem and invite innovators to propose solutions. ALSO READ: How Rwanda’s digital hub project could boost tech startups This recognises a simple truth: innovation thrives when creativity is rewarded, not constrained. Equally important is what the order removes. Local firms will no longer be locked out for lacking international experience or a history of large-scale projects. That requirement, while defensible on paper, effectively punished first movers and forced promising startups into unequal partnerships just to qualify. Allowing local companies to compete on the strength of their ideas and prototypes is a practical way to build national capacity rather than import it. ALSO READ: How far are we from having a Startup Act? The commitment to pay for solutions that meet agreed requirements also matters. For small and creative enterprises, cash-flow uncertainty has long been a deterrent to bidding for public work. Clearer payment assurances and more flexible processes reduce risk and make participation viable, especially for young innovators. This reform aligns with Rwanda’s broader ambition to build a knowledge-based economy driven by homegrown solutions. It sends a signal that innovation is not just encouraged in policy speeches but embedded in how the state spends public money. If implemented with transparency and discipline, the order could turn government procurement into a powerful engine for local innovation, one that nurtures startups, retains talent and ensures that national challenges are met with solutions designed by those who understand them best.
