Government pushes for bigger MSME role in public procurement

Rutendo Nyeve, [email protected]

GOVERNMENT is stepping up efforts to increase the participation of micro, small and medium enterprises (MSMEs) and cooperatives in public procurement, positioning State spending as a key tool for job creation, local industrial growth and inclusive economic development as Zimbabwe moves towards Vision 2030.

Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa said public procurement should not be regarded merely as a purchasing process, but as a strategic instrument capable of driving economic transformation and empowering local businesses.

She made the remarks while addressing the recent Fifth Annual Public Procurement Conference in Victoria Falls, which brought together policymakers, regulators, procurement practitioners, businesses and other stakeholders to discuss ways of strengthening Zimbabwe’s procurement systems.

 Minister Monica Mutsvangwa

The conference, organised by the Procurement Regulatory Authority of Zimbabwe (Praz) in partnership with the Southern Africa Public Procurement Training Academy (Sappta), was held under the theme: “Public Procurement for National Development: Leveraging Digital Innovation,Artificial Intelligence and Strategic Partnerships for Inclusive and Sustainable Economic Growth”.

“The conference theme rightly places emphasis on digital innovation and strategic partnerships. In this regard, our quest to enhance digital procurement must be guided by principles of inclusivity, transparency and accountability to ensure that our public procurement systems remain instruments for creating opportunities for all enterprises,” said Minister Mutsvangwa.

She said MSMEs and cooperatives remain critical to Zimbabwe’s economic development, contributing about 60 percent of the Gross Domestic Product and employing more than 75 percent of the national workforce.

Minister Mutsvangwa noted that Zimbabwe has about 11 000 registered cooperative societies with an estimated three million members, while women own more than 56 percent of MSMEs across the country.

“With over 56 percent of MSMEs being women-owned, it is imperative that our procurement systems promote inclusive participation and create meaningful opportunities for women, youth and other marginalised groups to contribute to and benefit from national development,” said Minister Mutsvangwa.

Despite their significant contribution to the economy, many MSMEs continue to face challenges that limit their ability to secure and retain public-sector contracts, she said.

The recently held MSMEs and Cooperatives Indaba gave Government an opportunity to engage directly with small businesses and cooperatives on the barriers affecting their participation in public procurement processes.

“MSMEs and co-operatives want fair access to public procurement opportunities, not just awareness of tender announcements. Capacity gaps, including compliance, documentation, pricing, quality assurance and contract management, remain key barriers to sustained participation. Many enterprises are ready to supply, but require structured supplier development, mentorship and predictable engagement,” said Minister Mutsvangwa.

She said women-led enterprises and cooperatives often face additional challenges, including limited access to finance, logistics, markets and risk-management support, making it harder for them to compete effectively.

“This is the bridge we must cross today, from policy dialogue to procurement systems that deliberately create opportunities for MSMEs and cooperatives, particularly women and youth, to participate meaningfully in the economy,” she said.

Minister Mutsvangwa called on procurement management units and institutional procurement structures to ensure that public procurement systems become enablers of growth rather than obstacles to MSME and cooperative participation.

She said her ministry would continue strengthening enterprise development programmes, improving governance systems, enhancing business skills and capacity-building initiatives, while also widening access to finance and markets.

Minister Mutsvangwa also commended Praz and Sappta for creating a platform that enables stakeholders to explore practical ways of aligning public procurement with national development priorities.

She further congratulated Praz chief executive officer Dr Clever Ruswa on attaining a PhD from Chinhoyi University of Technology and being named Chartered Institute of Procurement and Supply (CIPS) Africa Leader of the Year.

“These are significant milestones which bring credit not only to him personally, but also to the institution he leads and the important work it continues to undertake in strengthening public procurement in Zimbabwe,” she said.

Participants at the conference also examined how digital innovation and artificial intelligence can modernise public procurement systems, improve efficiency and widen access to opportunities.

Attendees included representatives from Government ministries, departments and agencies, accounting officers, procurement professionals, entrepreneurs, cooperatives and youth-owned businesses.

Minister Mutsvangwa said the adoption of technology must go hand in hand with transparency and accountability to ensure digital procurement systems create more opportunities for smaller enterprises instead of excluding them.

“Together, let us build a modern, transparent, ethical and inclusive public procurement ecosystem that accelerates NDS2 implementation, advances the attainment of Vision 2030,” she said.

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