Bulawayo councillors have raised concern over the growing number of council tenders being awarded to companies from outside the city warning that the trend is crippling local businesses and weakening the city’s economy.
This emerged during a recent finance and development committee meeting where councillors called for urgent measures to help local small-to-medium enterprises (SMEs) access public contracts.
According to council minutes, councillor Mxolisi Mahlangu said there was a need for a “deliberate effort” by council to educate local SMEs on how to secure tenders and participate in public procurement processes.
“He highlighted that the circulation flow of money within the city was critical, this would make the city economically viable,” the minutes read.
Councillor Dumisani Nkomo proposed that council should set timelines for implementing recommendations aimed at improving local participation in procurement processes.
He also stressed the need to involve the Procurement Regulatory Authority of Zimbabwe (Praz).
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Another councillor, Meli Thobeka Moyo, supported the proposal.
Finance and development committee chairperson councillor Mpumelelo Moyo said awarding tenders to companies from other cities was “hindering economic progress in the City of Bulawayo”.
The committee heard that many local businesses were struggling to navigate the electronic government procurement (eGP) system, which is now used for all public procurement processes.
“The eGP is a secure, web-based platform that automated the entire public procurement cycle.”
Chamber secretary, Sikhangele Zhou, said local companies required training and skills development to improve competitiveness and access tender opportunities.
“Local businesses had to be accustomed to using this system as most of them had indicated challenges in operating the system,” Zhou said.
Council officials also recommended working with organisations such as the Bulawayo Progressive Residents Association, which had previously attempted to assist local companies in procurement processes.
Bulawayo firms are battling liquidity challenges, company closures and shrinking industrial activity, with stakeholders increasingly calling for procurement policies that prioritise local economic development and keep money circulating within the city.