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Praz toughens stance on govt procurement

Local News

THE Procurement Regulatory Authority of Zimbabwe (Praz) has moved to enforce compulsory use of the electronic Government Procurement (e-GP) system for all Treasury-funded procurement. 

The decision comes amid concerns over low utilisation and capacity gaps among procuring entities and bidders.  

The e-GP system, introduced in October 2023, aims to reduce human interference in public procurement, curb corruption, enhance transparency, and improve efficiency by digitising tender publication, bid submission, evaluation, and contract award processes. 

Speaking at a nationwide stakeholder engagement and training programme on Monday, Praz chief executive officer Clever Ruswa said the government would not process payments for procurement done outside the e-GP platform, citing low uptake among public institutions. 

“Out of the 372 procuring entities, less than 50% are fully utilising the electronic government procurement platform, despite its advantages in terms of transparency and efficiency,” Ruswa said. 

“That feedback compelled us to engage directly with stakeholders and roll out hands-on training so that both procuring entities and bidders are comfortable using the system. Going forward, Treasury will not entertain payments for procurement conducted outside the electronic government procurement system.” 

He also said the authority had launched a comprehensive assessment of Zimbabwe’s public procurement framework. 

“We have passed the halfway mark of a decade since the Act was promulgated, and it is necessary to assess whether our systems are still contemporary,” Ruswa said. 

In a related development, Praz has reduced annual bidder registration fees, particularly for micro, small, and medium enterprises (MSMEs).  

Fees for MSMEs have been cut from US$120 to US$50 per year, while small and medium enterprises (SMEs) will now pay US$60. Registration fees for large corporates were also reduced to US$75 per annum. 

Ruswa said the fee reductions were intended to lower barriers to entry, encourage youth participation, and enable bidders to register for multiple procurement categories. 

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