Inclusive procurement and value for money can co-exist, say experts

Nqobile Bhebhe Zimpapers Business Hub

GROWING consensus is emerging among policymakers, regulators and industry stakeholders that broadening participation in Government contracts need not come at the expense of value for money.

Experts say inclusive procurement can unlock opportunities for women, small and medium enterprises (SMEs) and other marginalised groups, while maintaining competitiveness, transparency, accountability and efficient use of public resources.

The issue took centre stage at the Fifth Annual Public Procurement Symposium organised by the Procurement Regulatory Authority of Zimbabwe (Praz).

A panel discussion on “Inclusive Public Procurement for Broad-Based Economic Participation” examined strategies to enhance SME and special interest group involvement without compromising procurement principles.

Public procurement is the process through which Government entities acquire goods, services and infrastructure from private suppliers.

Beyond purchasing, it is increasingly recognised as a strategic tool to stimulate industrial growth, create employment, support local businesses and advance development objectives.

Participants agreed that inclusive procurement is not about lowering standards or creating unfair advantages.
Rather, it removes structural barriers that prevent capable businesses from competing on equal terms.

Women entrepreneurs at the symposium argued that public procurement remains one of the Government’s most powerful instruments for economic inclusion.

Director in the Ministry of Women Affairs Mrs Julia Mapungwana said women must be adequately represented within procurement structures.

“As we do our recruitment in public entities, we should also ensure gender equity. Women must participate at the procurement table to effectively represent other women entrepreneurs,” she said.

She further said increasing the number of women in procurement departments would help shape policies that reflect realities facing women-owned enterprises.

One key proposal was the introduction of quota systems for women-led businesses.

“Another key issue is setting aside a quota system for women, as they might find it difficult to compete with large corporates,” she said.

Stakeholders emphasised that targeted interventions must preserve fairness, competition and quality.
Capacity constraints remain a major obstacle.

“As women, we think the greatest challenge is lack of adequate capacity. We lack understanding of procedures, requirements, compliance, supplying products and taxation issues such as tax clearance,” she said.

Mrs Mapungwana noted that many women-owned enterprises remain informal.

“Women-owned enterprises remain largely informal. A lot of work is needed to capacitate women. One strategy is formalisation, including registration, training, compliance, marketing and other aspects,” she said.

Delegates proposed contract unbundling, simplified application procedures and collective bidding models.

“Another aspect Praz is working on is breaking down barriers for women-owned enterprises. Break contracts into smaller nodes, simplify application procedures without compromising value for money,” she said.

“Also, allow smaller women enterprises to aggregate their products and participate in tenders. If Praz can allow that and recognise it, women can make use of their associations. It can be a policy and enforceable.”

Such proposals mirror international best practice.

Access to finance emerged as another critical concern.

Director in the Ministry of Public Works and Local Government Mrs Alerta Masvutu said financial institutions should equip women entrepreneurs with the financial skills required to compete effectively.

She proposed using artificial intelligence (AI) to improve procurement oversight and reduce contract concentration.

“There should be a limit on tenders one can get in local authorities. That’s where AI can come in. We can effectively use AI in data collection,” she said.

While there was overwhelming support for empowering women and SMEs, Praz warned that some individuals abuse empowerment programmes by using women-owned enterprises as fronts to secure contracts.

Praz chief executive officer Dr Clever Ruswa said the authority was strengthening monitoring systems.

“There are people using fronts by claiming to be ultimate beneficiaries. Since January last year, we have been compiling a database of procurement participants,” he said.

Dr Ruswa said the database would improve transparency and compliance.

“Time will come when we will be having one-on-one discussions (with culprits),” he said.

Praz has introduced a formal definition of a women-owned enterprise.

“We now have a definition of women-owned businesses. Let’s desist from abusing the tender process,” he said.

The authority is also embracing technology.

“From July to September, we will be enhancing the e-GP system by incorporating AI for gathering specifications,” he said.

The upgrades are expected to improve data collection, trend analysis and detection of irregularities.

At the same time, Praz insists inclusivity must remain anchored in prudent management of public resources.

Dr Ruswa defended the National Standard Price List (NSPL), saying it is designed to improve transparency and support value-for-money procurement, not impose price controls.

 

“There was pushback on the price list. Some said it is impeding us from achieving certain goals. But this is not a price control; it is a guide,” he said.
The framework will continue evolving through stakeholder consultations.
“When we came out with those 44 divisions, the list is not exhaustive. At the end of this month, we will work with ZimStat (Zimbabwe National Statistics Agency) again to include other categories. This is a flexible document you can use as a guide,” he said.
According to Dr Ruswa, effective procurement creates jobs, supports local industry, improves service delivery and safeguards public resources.
“Praz will not only push inclusion but will also continue to strengthen enforcement and guidance,” he said.
The discussions in Bulawayo highlighted that inclusive procurement is not a choice between empowerment and efficiency.
Rather, it widens participation, removes unnecessary barriers and unlocks opportunities for women, SMEs and other disadvantaged groups while preserving competition, accountability and value for money.
As Zimbabwe advances its procurement reform agenda, delegates said the challenge is ensuring empowerment initiatives genuinely benefit intended groups, while strong oversight prevents abuse and protects public funds.
For policymakers, the message was clear: Inclusion works best when supported by transparency, robust enforcement and sound procurement practices.
Those principles, delegates agreed, remain essential to building a modern procurement system capable of driving broad-based economic development.

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