PRAZ works to plug procurement capacity deficiencies among MMSEs

Judith Phiri, [email protected]

THE Procurement Regulatory Authority of Zimbabwe (PRAZ) has reaffirmed its commitment to conduct training programmes in order to address capacity gaps that hinder many micro, small and medium enterprises (MSMEs) participation in public procurement.

This comes at a time when the Government has also significantly reviewed the registration and renewal fees charged by PRAZ to improve the ease of doing business and broaden participation in public procurement.

MSMEs in Zimbabwe are the backbone of the economy, comprising over 3,4 million entities that account for 70 to 76 percent of total employment and contribute approximately US$8,6 billion to the gross domestic product (GDP).

Speaking at the Public Procurement: Bidders Workshop in Bulawayo, PRAZ chief executive officer Dr Clever Ruswa, said forging a path towards a transformative era in public procurement for Zimbabwe was critical for an era defined by transparency, efficiency and inclusivity.

“The electronic Government Procurement (eGP) system provides us with a unified online platform that promotes openness and accessibility in procurement processes, enhancing the ability of all stakeholders to participate effectively.

“As we are already operating in this digital framework, we must embed a culture of accountability and transparency that is vital for nurturing trust among our citizens and stakeholders,” he said.

“But our commitment does not end with implementation; it extends to the continuous capacity-building of all those involved. In 2026, as we did in the past two years, PRAZ will continue with sector-specific training programmes designed to equip MSMEs and other participants with the necessary skills to navigate the eGP system.”

He said these training sessions will empower MSMEs to harness the potential of the eGP system effectively and confidently, a vital step towards ensuring meaningful participation in public procurement.

Dr Ruswa said the implementation of the eGP system symbolises the Government’s unwavering commitment to enhancing public procurement processes.

“As mandated by the authorities, all public entities must mandatorily adopt the eGP system when procuring. This directive is not merely a guideline; it is an unequivocal commitment that we must uphold at all costs.

“Equally, the Ministry of Finance, Economic Development and Investment Promotion issued a circular stating that they will not facilitate payments on procurements done outside the eGP system; let us take heed,” he added.

Dr Ruswa said that through targeted training initiatives, they aim to address the capacity gaps that are often barriers to the participation of MSMEs in public procurement.

He said the training centred on equipping not just the regular users but everyone who touches the public procurement process.

“We will focus on enhancing understanding of procurement regulations, improving bid quality and promoting compliance and ethical practices throughout our procurement processes. Our goal is clear, to promote not only participation but also the quality and competitiveness of bids from all sectors,” he said.

“We have adopted ‘Knowledge Sharing’ to be our 2026 PRAZ theme and we can enhance self-service capabilities on the eGP platform, minimising reliance on intermediaries and ultimately expanding opportunities for all who wish to engage in public procurement.”

Dr Ruswa said PRAZ’s recent announcement of lower compliance costs, particularly for MSMEs, directly addresses one of the most persistent barriers to formal market participation which is affordability.

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.

PRAZ corporate services director, Mr Terence Machawira, said the reduction of fees through statutory instrument (SI) 9 of 2026 was critical.

“So, in keeping with the Small and Medium Enterprises Act, we categorised our bidders into three which are micro enterprises, which are the very small enterprises and then we have the small to medium enterprises as well as non-micro small and medium enterprises, which are basically the corporates. The fees were reduced using these categories and we should applaud the Government for this,” he said.

To align PRAZ functions with the Sustainable Development Goals (SDGs) and aspirations of the National Development Strategy 2 (NDS2), Mr Machawira said they were ensuring that previously marginalised groups are economically empowered and able to share the national capital.

On gender equality, Mr Machawira said they have been trying hard to push for gender mainstreaming by ensuring that women participate in public procurement.

Officially launched by President Mnangagwa in October 2023, the eGP system became operational on January 1, 2024 and enables all public entities and bidders to conduct procurement activities electronically.