Lloyd Makonya
Correspondent
THE Government’s decision to significantly reduce registration and renewal fees charged by the Procurement Regulatory Authority of Zimbabwe (PRAZ) marks a strategic intervention in the country’s ongoing efforts to improve the ease of doing business and broaden participation in public procurement.
The recent announcement by PRAZ to lower the cost of compliance, particularly for Micro, Small and Medium Enterprises (MSMEs), directly addresses one of the most persistent barriers to formal market participation, affordability. Public procurement is one of the largest markets in the economy, yet for many small enterprises in Zimbabwe, the cost of registration has historically been a deterrent, pushing them either into informality or excluding them altogether from tender opportunities.
The new fee structure, which reduces annual registration for micro enterprises from US$120 to US$50, SMEs to US$60 and larger non-SME entities to US$75, represents a deliberate policy shift towards inclusivity and economic empowerment. From an operational perspective, the reduced fees immediately ease cash-flow pressures on small firms.
Start-ups and growing enterprises typically operate on thin margins, with limited access to affordable finance. By lowering regulatory costs, more resources can be redirected towards productive activities such as purchasing equipment, hiring staff, improving product quality and meeting delivery standards required in government contracts. This enhances their competitiveness and sustainability, while also improving value for money for the State through a broader and more competitive supplier base.
The reform also strengthens regulatory compliance. High entry costs often incentivise informal participation or total disengagement from formal procurement systems. By making registration more affordable, PRAZ lowers the threshold for compliance, encouraging businesses to operate within the legal and regulatory framework. Increased formalisation improves transparency, accountability and data availability, which are critical for effective procurement planning, risk management and policy formulation.
For SMEs in particular, the reduced fees create a more realistic pathway into public tendering. With clearly defined tender value thresholds aligned to enterprise size, small firms can now participate in government contracts with greater confidence, knowing that the cost of remaining registered is proportionate to their scale of operations.
This expands market access, stimulates enterprise growth and supports the development of domestic supply chains, which are essential for industrialisation and local content development.
At a macro level, the policy aligns with President Mnangagwa’s development philosophy of: “leaving no one and no place behind”, and the national aspiration to attain an upper-middle-income economy by 2030. Inclusive economic growth cannot be realised if regulatory systems favour only large, well-capitalised firms.
By deliberately lowering barriers to entry, the Government is enabling micro and small enterprises, including those in rural and peri-urban areas, to participate meaningfully in national economic activity. Furthermore, the move signals to investors and development partners a commitment to reforming the business environment, reducing transaction costs and modernising public institutions. A procurement system that is accessible, competitive and compliant enhances investor confidence and supports the broader ease-of-doing-business agenda.
In essence, the reduction of PRAZ registration fees is more than an administrative adjustment; it is a structural reform that promotes inclusivity, strengthens compliance, deepens competition and unlocks opportunities for SMEs within the public procurement ecosystem. As Zimbabwe implements its new economic and sectoral policies, such targeted interventions demonstrate how regulatory reform can translate Vision 2030 from aspiration into practical, enterprise-level impact.
Source: Herald – https://www.heraldonline.co.zw/lower-praz-fees-open-inclusive-growth-doors/
All Zim News – Bringing you the latest news and updates.
Allzimnews – Bringing you the latest news and updates.
