An evaluation of the role of electronic payment systems in reducing procurement cycle time in Ugandan institutions
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Date
2026-05-06
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Uganda Christian University
Abstract
This paper discusses how electronic payment systems (EPS) can help to reduce the procurement cycle time in the Ugandan public institutions, with particular reference to the Ministry of Works and Transport. The study also conceptualizes EPS in terms of strategic technological resources that require complementary organizational capabilities including digital literacy, system integration and ICT infrastructure. The qualitative single-case study design was selected, where purposive and snowball sampling were used to select 17 participants who are involved in procurement and financial processes.
The data was gathered by use of an open ended online questionnaire which was supplemented by analysis of documents, and analyzed using thematic analysis.
The results indicate that the use of electronic payment systems and, specifically, the Integrated Financial Management System (IFMS) can greatly improve the efficiency of the procurement process through accelerating the speed of the payments processing, increasing the level of transparency, and providing the opportunity to track the transactions in real-time. Nonetheless, these advantages are not always achieved because of entrenched challenges, including; system downtimes, poor internet connectivity, low digital skills, and low level of integration between procurement and financial systems.
The paper also determines the major enablers of effective use of EPS including staff training, sound ICT infrastructure and powerful management support and identifies critical gaps in capability that hinder system performance.
The research finds that, even though EPS have a high potential of reducing the procurement cycle time, their effects are highly contingent with the existence of complementary capabilities within institutions. It suggests ongoing investment in digital skills building, developing ICT infrastructure, improving system integration and enhancing interdepartmental coordination. In applying RBV to a public sector setting, the study not only adds to the body of theoretical and practical understanding of the topic, but also provides context-specific information on how the topic can be effectively
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applied to the procurement process in Uganda (and similar developing economies).
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Undergraduate