marble nkomo
Nqobile Bhebhe, Zimpapers Business Hub
THE City of Bulawayo has urged local suppliers and contractors to engage more actively in its tender processes, cautioning that the hesitance of reputable firms is allowing middlemen to inflate prices and hinder critical service delivery projects.
The appeal was made during a recent stakeholders’ meeting with the business sector as part of the local authority’s strategy to foster inclusive development and enhance collaboration with the private sector.
Officials raised concerns that the low participation of established local suppliers has created a gap increasingly exploited by intermediaries, resulting in inflated procurement costs and delayed project implementation.
The City noted that “middlemen” were taking advantage of the situation by bidding for contracts and charging exorbitant prices for goods and services well above market value, ultimately prejudicing both the local authority and ratepayers.
Chamber Secretary Mrs Sikhangele Zhou said the current trend was unsustainable and undermined value for money in public procurement.
“While the procurement system is frustrating as it is now, we appeal to genuine businesses to also make these presentations. Because what we then get is third parties — middlemen — who buy from reputable businesses and tender with their own mark-up, and we get ridiculous prices,” said Mrs Zhou.
“The classic example we dealt with last year is that of cement. We buy a lot of cement as an organisation, and we get people tendering up to US$18 or US$20 per bag, while at a local supplier, it would be going for US$8 or US$10. We encourage the local suppliers to participate, but when you try to convince them, they are often not interested. That is what we are asking from the business sector: be interested.”
Mrs Zhou added that some tenders end up being unsuccessful because the local authority is aware of prevailing market prices, yet bidders submit inflated quotations that cannot be justified.
The reluctance of credible companies to bid has far-reaching implications, often forcing the municipality to repeatedly re-advertise tenders.
A local supplier, Mr Nkosana Moyo, noted that while businesses are willing to work with the council, there is limited awareness regarding compliance.
“Many of us want to participate, but the truth is that there is little awareness on how the bidding process works and what exactly is required by the council and regulatory authorities such as the Procurement Regulatory Authority of Zimbabwe (Praz),” he said.
“Some suppliers are discouraged by the paperwork and registration processes, which are not always clearly explained, especially for small to medium businesses.”
Business strategist with ConsultWorld Enterprise, Mr Busani Malaba, said a vibrant and competitive bidding process is central to effective public procurement.
“When many qualified bidders participate, it creates natural price competition, which helps drive costs closer to true market value. This is particularly critical for local authorities like the City of Bulawayo, where every dollar saved can be redirected towards essential services such as water, roads, and sanitation,” Mr Malaba explained.
He added that established suppliers bring technical expertise and realistic benchmarks that middlemen lack.
“Unlike intermediaries, established suppliers have direct access to products and supply chains, which allows them to submit competitive and sustainable bids.”
Town Clerk Mr Christopher Dube warned that re-advertising tenders stalls development and affects the City’s ability to meet its targets.
“When we advertise, you will find that very few people respond, and we are forced to re-tender. I can tell you we have some tenders that have been advertised three or four times because they fail to meet the requirements,” he told stakeholders.
“A tender cycle is about three to four months, if you re-tender three or four times, by the end of the year, you have achieved nothing.”
Mr Dube acknowledged that while the Procurement Regulatory Authority of Zimbabwe’s (Praz) e-GP system has faced challenges, the council continues to lobby for improvements to prevent further delays in service delivery.
Despite these hurdles, the Town Clerk emphasised that private sector participation remains central to the city’s growth, particularly through Public-Private Partnerships (PPPs).
“There are so many projects that can be achieved through PPPs. I know the frustration experienced regarding procedures, but please be patient and let us work together. Private sector involvement is key for the development of Bulawayo and I encourage you to come on board,” Mr Dube concluded.
Bongani Ndlovu