Online Reporter
Nqobile Bhebhe, [email protected]
THE Bulawayo City Council’s deliberate move to award most of its municipal tenders to local companies has been hailed as a breakthrough by the business community, which has for years lobbied for a procurement framework that prioritises firms operating in the city.
Business leaders say the development marks a significant step towards reviving Bulawayo’s industrial base, stimulating economic activity, creating jobs and ensuring that financial resources circulate within the local economy.
However, stakeholders have also urged companies awarded contracts to deliver quality work within agreed timelines, warning that delays and poor workmanship could undermine confidence in local industry capacity and negatively affect service delivery.
According to the procurement report tabled during the May council meeting by Town Clerk Mr Christopher Dube, 71 percent of the 59 tenders awarded between January and March were issued to Bulawayo-based companies.
The contracts covered a wide range of goods and services, including sewer maintenance, water reticulation materials, vehicle repairs, stationery, protective clothing, cleansing materials and fuel supplies.
Mr Dube said in January the city awarded 14 tenders valued at nearly US$2,8 million, with most contracts going to local firms.
“A total of fourteen (14) procurements were awarded during the month of January with a total value of two million seven hundred and ninety-eight thousand four hundred and eighty dollars and nine cent (US$2,798,480.09).
“The bulk of the procurements (11) were for goods, whilst three (3) were for non-consultancy services. Eight (8) of these procurements were awarded to Bulawayo-based companies whilst six (6) went to Harare-based companies,” said Mr Dube.
The goods contracts included procurement of Sulzer maintenance materials, 3-tonne pick-up trucks, 7-tonne trucks, tipper trucks, minibuses, SUVs, utility vehicles, protective clothing and fuel.
Non-consultancy service contracts were mainly for the clearance of blocked sewer lines.
“The method of procurement that was used the most in these procurements was the competitive bidding method (84.41 percent), followed by restricted bidding 6.44 percent, framework agreements (8.81 percent) and request for quotations (0.34 percent).
“The restricted method of procurement was used for the procurement of fuel,” said Mr Dube.
In February, the city awarded 23 bids worth more than US$1,8 million, with Bulawayo companies again securing the majority of the contracts.
“A total of twenty-three (23) procurements were awarded during the month of February for various goods and services with a total value of one million eight hundred and eighty-five thousand and fifty-two dollars and fifty-one cents (US$1,885,052.51).
“Seventeen (17) of these procurements were for goods whilst five (5) were for non-consultancy services and one (1) for consultancy services. Seventeen (17) awards went to Bulawayo-based companies whilst six (6) went to Harare-based companies,” reads part of the report.
The report states that 90 percent of the procurements during February were conducted through competitive bidding, while 9,80 percent were done through framework agreements and 0,25 percent through requests for quotations.
Despite the positive procurement trend, Mr Dube said the city continued to face funding constraints.
“The biggest challenge is the raising of enough funds to finance all the concluded contracts.
“The pricing for goods and services procured is also a challenge as it depends on the currency of payment. This makes it difficult to determine the fairness of the prices charged.
“To mitigate some of these challenges, suppliers/contractors are continuously engaged on the financial status of the organisation and when payments are likely to be done,” reads part of the report.
In March, the municipality awarded 22 procurements valued at over US$4,9 million for goods, works and non-consultancy services.
“These purchases benefited seventeen (17) Bulawayo-based companies, while the remaining five (5) went to Harare-based companies.
“Ninety-two point zero nine percent of these procurements were made through competitive bidding, followed by direct procurements at 2.34 percent, framework agreements at 5.01 percent, and requests for quotations at 0.56 percent,” said Mr Dube.
The development comes amid growing calls by Bulawayo’s business community for local authorities and
Government institutions to prioritise local procurement as part of wider efforts to revive industries in Zimbabwe’s second-largest city.
Several councillors have also raised concern over the awarding of some tenders to companies outside Bulawayo, arguing that local firms should continue receiving greater support.
Entrepreneur Mr Donald Masilela said the business community had consistently advocated for increased participation of local companies in public procurement processes.
“This is a welcome development that the Bulawayo business community has been lobbying for over many years because local procurement has a direct impact on industrial activity, employment creation and circulation of money within the city,” said Mr Masilela.
“What is now important is for companies that have been awarded contracts to deliver quality work and complete projects within agreed timelines because that builds confidence in local industry capacity.”
Construction proprietor Mrs Sinanziwe Gumude said local firms now had an opportunity to prove their capabilities and strengthen the case for broader participation in future projects.
“The opportunity now comes with responsibility. Local companies must demonstrate competitiveness, professionalism and the ability to meet contractual obligations consistently,” she said.
“For years, local companies have argued that they were capable of handling many of these contracts and we are pleased that the City is increasingly recognising local capacity.
“However, businesses that have benefited must avoid delays and poor workmanship because failure to deliver affects not only individual companies but also the reputation of the Bulawayo industry as a whole.”
The city’s procurement thrust is expected to complement broader efforts towards achieving its vision of becoming a “City of Kings, A Smart and Sustainable City by 2030.”
