Revolutionizing Public Procurement: The Rise of GeM and the Power of ICT in Lesotho
September 16, 2024, 11:00 pm
Location: United States, District of Columbia, Washington
Employees: 10001+
Founded date: 1944
Total raised: $530M
In the digital age, public procurement is undergoing a seismic shift. The Government eMarketplace (GeM) in India and the Remote Appraisal, Supervision, Monitoring, and Evaluation (RASME) initiative in Lesotho are two shining examples of how technology is reshaping government operations. These platforms are not just tools; they are catalysts for change, fostering transparency, efficiency, and inclusivity.
GeM, launched in 2016, started as a modest portal with a gross merchandise value (GMV) of INR 422 crore. Fast forward to 2024, and it has exploded into one of the largest Business-to-Government (B2G) procurement portals globally, boasting a staggering cumulative GMV of INR 4 lakh crore, or about USD 50 billion. This transformation is akin to a small seed growing into a mighty tree, providing shade and shelter to countless micro, small, and medium enterprises (MSMEs).
The platform's primary mission is to streamline procurement across all levels of the Indian government—central, state, and local. By focusing on innovation and inclusion, GeM has become a vital bridge between the government and industry. It empowers MSMEs, allowing them to compete for government contracts that were once out of reach. With over 90 lakh registered sellers, 39% of the business value on GeM is now transacted by these small enterprises. This democratization of public procurement is a game-changer, enabling diverse voices to be heard in the marketplace.
Efficiency is another cornerstone of GeM's success. The procurement cycle, which once dragged on for 42 days, has been slashed to just 7 to 10 days. This is not just a reduction in time; it’s a leap into the future. The introduction of various procurement modes, such as direct purchases for orders below INR 50,000 and L1 procurement for larger orders, has simplified the buying process. Government buyers can now make informed decisions quickly, enhancing the overall procurement experience.
Moreover, the integration of Aadhaar and PAN has streamlined the registration process for sellers, eliminating redundancies and reducing costs. A World Bank study highlights that GeM has saved the Indian government nearly 10% of its GMV, amounting to around one lakh crore rupees. This is not just savings; it’s a testament to the power of technology in public finance.
In a parallel narrative, Lesotho is embracing technology through the RASME initiative. Launched by the African Development Bank and the Lesotho government, RASME harnesses the power of information and communications technology (ICT) to collect project data remotely. This initiative is crucial in regions facing instability or logistical challenges. It transforms how data is gathered and analyzed, ensuring that development projects are monitored transparently and effectively.
The RASME project utilizes the Kobo Toolbox platform, an open-source ICT solution developed by the Harvard Humanitarian Initiative. This digital suite allows for real-time data collection, making project management more responsive and evidence-based. The initiative has already been implemented in 34 countries across Africa, training over 1,650 individuals and facilitating more than 6,100 submissions. This collaborative approach reflects a commitment to strengthening the data ecosystem in Lesotho, ensuring that development projects are grounded in reliable information.
Both GeM and RASME share a common thread: they empower stakeholders. GeM supports startups and MSMEs by providing access to government contracts and facilitating collateral-free digital lending through the GEM Sahay initiative. This allows small enterprises to secure loans quickly, fostering innovation and competition. Similarly, RASME enhances accountability among stakeholders, ensuring that development initiatives are reported transparently and effectively.
The impact of these initiatives extends beyond mere numbers. They represent a shift in mindset. Governments are beginning to recognize the importance of data-driven decision-making. In India, GeM is not just a procurement platform; it’s a movement towards inclusivity and efficiency. In Lesotho, RASME is redefining how development projects are monitored, making them more transparent and accountable.
As we look to the future, the potential for these platforms is immense. GeM aims to onboard a majority of the 1.25 lakh DPIIT-registered startups, further expanding its reach and impact. Meanwhile, RASME continues to evolve, enhancing its capabilities to ensure that development projects are executed based on sound evidence.
In conclusion, the stories of GeM and RASME are not just about technology; they are about transformation. They illustrate how digital tools can reshape public procurement and project management, making them more inclusive, efficient, and transparent. As these initiatives continue to grow, they will undoubtedly inspire other nations to follow suit, paving the way for a new era of public governance. The future is bright, and the seeds of change have already been sown.
GeM, launched in 2016, started as a modest portal with a gross merchandise value (GMV) of INR 422 crore. Fast forward to 2024, and it has exploded into one of the largest Business-to-Government (B2G) procurement portals globally, boasting a staggering cumulative GMV of INR 4 lakh crore, or about USD 50 billion. This transformation is akin to a small seed growing into a mighty tree, providing shade and shelter to countless micro, small, and medium enterprises (MSMEs).
The platform's primary mission is to streamline procurement across all levels of the Indian government—central, state, and local. By focusing on innovation and inclusion, GeM has become a vital bridge between the government and industry. It empowers MSMEs, allowing them to compete for government contracts that were once out of reach. With over 90 lakh registered sellers, 39% of the business value on GeM is now transacted by these small enterprises. This democratization of public procurement is a game-changer, enabling diverse voices to be heard in the marketplace.
Efficiency is another cornerstone of GeM's success. The procurement cycle, which once dragged on for 42 days, has been slashed to just 7 to 10 days. This is not just a reduction in time; it’s a leap into the future. The introduction of various procurement modes, such as direct purchases for orders below INR 50,000 and L1 procurement for larger orders, has simplified the buying process. Government buyers can now make informed decisions quickly, enhancing the overall procurement experience.
Moreover, the integration of Aadhaar and PAN has streamlined the registration process for sellers, eliminating redundancies and reducing costs. A World Bank study highlights that GeM has saved the Indian government nearly 10% of its GMV, amounting to around one lakh crore rupees. This is not just savings; it’s a testament to the power of technology in public finance.
In a parallel narrative, Lesotho is embracing technology through the RASME initiative. Launched by the African Development Bank and the Lesotho government, RASME harnesses the power of information and communications technology (ICT) to collect project data remotely. This initiative is crucial in regions facing instability or logistical challenges. It transforms how data is gathered and analyzed, ensuring that development projects are monitored transparently and effectively.
The RASME project utilizes the Kobo Toolbox platform, an open-source ICT solution developed by the Harvard Humanitarian Initiative. This digital suite allows for real-time data collection, making project management more responsive and evidence-based. The initiative has already been implemented in 34 countries across Africa, training over 1,650 individuals and facilitating more than 6,100 submissions. This collaborative approach reflects a commitment to strengthening the data ecosystem in Lesotho, ensuring that development projects are grounded in reliable information.
Both GeM and RASME share a common thread: they empower stakeholders. GeM supports startups and MSMEs by providing access to government contracts and facilitating collateral-free digital lending through the GEM Sahay initiative. This allows small enterprises to secure loans quickly, fostering innovation and competition. Similarly, RASME enhances accountability among stakeholders, ensuring that development initiatives are reported transparently and effectively.
The impact of these initiatives extends beyond mere numbers. They represent a shift in mindset. Governments are beginning to recognize the importance of data-driven decision-making. In India, GeM is not just a procurement platform; it’s a movement towards inclusivity and efficiency. In Lesotho, RASME is redefining how development projects are monitored, making them more transparent and accountable.
As we look to the future, the potential for these platforms is immense. GeM aims to onboard a majority of the 1.25 lakh DPIIT-registered startups, further expanding its reach and impact. Meanwhile, RASME continues to evolve, enhancing its capabilities to ensure that development projects are executed based on sound evidence.
In conclusion, the stories of GeM and RASME are not just about technology; they are about transformation. They illustrate how digital tools can reshape public procurement and project management, making them more inclusive, efficient, and transparent. As these initiatives continue to grow, they will undoubtedly inspire other nations to follow suit, paving the way for a new era of public governance. The future is bright, and the seeds of change have already been sown.