This “procurement chaos,” as Ncube describes it, is bleeding government coffers dry.
The consequences are tangible.
Ministries often fail to honour payment schedules, leading to delayed or missed payments to contractors and suppliers.
Such bottlenecks erode trust between government and the private sector and threaten the continuity of public services and development initiatives. “This over-contracting is causing delays or non-payment to our hardworking contractors and partners,” the minister noted, warning that these bottlenecks risk undermining the entire public procurement ecosystem.
Zimbabwe’s economy remains fragile after years of macroeconomic instability, inflationary pressures, and limited fiscal space.
Unchecked government spending directly threatens economic recovery and growth.
Budget overruns from procurement chaos translate into higher borrowing, increased public debt, or the crowding out of essential expenditures such as health, education, and social welfare programs. “Unchecked contracting inflates our liabilities, and these are not just numbers on paper.
They represent real financial risks that could push the country towards fiscal collapse,” Ncube warned.
Fiscal mismanagement also undermines investor confidence, a critical factor as Zimbabwe seeks foreign direct investment and aims to rebuild productive capacity.
International financial institutions increasingly scrutinize governance frameworks, with public procurement a key area of concern.
Procurement chaos also stalls essential development projects.
Infrastructure upgrades, rural development programs, and public service expansions are delayed or shelved due to financial uncertainty.
To address these challenges, Ncube announced reforms to tighten Treasury controls and restore fiscal order. “The Treasury will enforce stricter controls and require ministries to seek approval before signing major contracts,” he said. “This is not about bureaucracy but about safeguarding public resources and ensuring accountability. ” Measures include enhanced monitoring of procurement activities, establishing clear thresholds for contract approvals, and integrating procurement data into Treasury management systems for real-time oversight.
The government also plans to strengthen ministry capacity for effective procurement while promoting transparency and compliance with financial regulations. “Over-contracting is not just a technical issue; it reflects on our ability as a government to manage resources responsibly,” Ncube said. “By tightening controls and improving accountability, we will send a clear signal to contractors, partners, and the public that the government is serious about fiscal discipline. ” Successful procurement reforms, he added, could enable smoother project implementation and improved delivery of public services, benefiting communities across Zimbabwe.
Economist and former Monetary Policy Committee member Eddie Cross weighed in:“This is true.
What the Ministry of Finance has discovered is that permanent secretaries, while they have restrictions on who they can employ without Ministry of Finance approval, they don’t have the same restrictions in respect to contracts.
And permanent secretaries have been entering into contractual obligations without the permission of the Ministry of Finance. “I understand that the permanent secretary in the ministry is now going to issue a Treasury instruction to all ministries that this has to stop immediately, that no contracts can be entered into without prior approval from the Ministry of Finance in writing.
And I think that will correct the problem. “But the legacy goes on because there are very substantial commitments which have been made in the name of government to contractors and others which are not supported by budgetary allocations.
And this will be a problem for some time until the ministry has the resources to clear these obligations. ” Another economist, Professor Gift Mugano,told Business Times, a market leader in business, financial and economic reportage:“I think the admission by the Minister of Finance that we are over-contracting is one of the biggest challenges facing the country.
We are trying to push as much infrastructure backlog as possible with limited fiscal space, but it drains resources and reduces flexibility to fund areas of pressing need, such as education, health, salaries, and production-enhancing projects. “Ministries independently contracting jobs without Treasury involvement is wrong because it violates the Public Finance Management Act.
The government must invoke penalties under the Act.
It creates room for corruption and binds the government into contractual obligations without the paymaster’s approval, leading to delayed or failed payments. ” Professor Mugano added that digitization and e-procurement platforms could enhance efficiency, reduce delays, and improve data accuracy, helping close loopholes that enable over-contracting.
Professor Ncube remains optimistic: “Things will improve going forward,” reflecting a renewed government commitment to financial discipline and reform.
Zimbabwe’s fiscal future depends heavily on curbing procurement chaos.
Over-contracting threatens fiscal discipline, undermines economic stability, and stalls critical development projects.
Professor Ncube’s warning is a clarion call: restoring Treasury oversight, tightening contract approvals, and promoting accountability are urgent priorities.
This moment presents an opportunity to build stronger institutions, safeguard public resources, and lay a firmer foundation for sustainable growth.
Related Source link
All Zim News
All Zim News is a central hub for all things Zimbabwean, curating news from across the country so no story is missed.
Alongside aggregation, our team of nationwide reporters provides real-time, on-the-ground coverage.
Stay informed and connected — reach us at admin@allzimnews. com. 🔗 Read Full Article
All Zim News is a central hub for all things Zimbabwean, curating news from across the country so no story is missed.
Stay informed and connected — reach us at admin@allzimnews. com.
