Prior to the reforms of 2008, Seychelles had no specific procurement legislation. Instead, there was a set of Ministerial Circulars and financial instructions with a component relating to public procurement, which was the basis to guide procurement. However this approach to procurement was inadequate.

Public procurement process was not defined by law and as a result, public resources were not necessarily being used optimally. In addition, there was lack of accountability, efficiency and transparency in the procurement process.

The Public Procurement Act was enacted in December 2008, However the office of the  Procurement Oversight Unit (POU) was setup in March 2009. It is a procurement policy making and monitoring body to oversee that the Ministries, Agencies and Authorities are properly carrying out procurement procedures in a fair and transparent manner with the aim of obtaining value for money.

Amendments to the act are being proposed to transform the Unit into an independent Authority with full delegation of powers, vested into a Board.