Online Reporter
Tapiwanashe Mangwiro
Buy Zimbabwe has called for changes to the country’s public procurement framework, warning that the current model is fuelling arbitrage instead of building domestic production.
Speaking during the third strategic meeting between business membership organisations (BMOs) and the Ministry of Industry and Commerce in Harare, Buy Zimbabwe chairman and chief executive Munyaradzi Hwengwere said while Government policy rightly prioritises local companies in tenders, loopholes were undermining the intent.
“Public procurement has done very well to say you must prioritise Zimbabwean entities,” Mr Hwengwere said.
“However, what we have is an open-ended programme. It is not linked to local manufacturers and that is a problem. If we restructure our procurement and anchor it on industry, we can triple manufacturing growth.”
Under current regulations, a local company can still win a Government contract if its bid is up to 30 percent higher than that of a foreign supplier. Mr Hwengwere said this has created opportunities for firms that import products and resell them under a Zimbabwean registration.
“What has happened is that we have essentially gone to China via a local person,” he said. “A Zimbabwean-registered company imports the very same products, slaps on a margin, and wins the contract. That is not building industry, it is fuelling arbitrage.”
Industry and Commerce Minister Mangaliso Ndlovu, who chaired the meeting, said the concerns would be taken forward with the Procurement Regulatory Authority of Zimbabwe (PRAZ).
“We have always had positive reactions from PRAZ,” he said. “Last time you raised an issue, they acted swiftly. We are going to invite them to the next meeting so that you can engage directly.”
He added, “Ours is a listening Government, one that responds to your grievances.”
Industrialist Dr Nxaba Ndiweni sees procurement as a powerful lever for industrial renewal. “If Government procurement is directly linked to local industry, you unlock consistent demand,” he said. “This in turn gives manufacturers predictable volumes, which is the basis for investment in new machinery and skills.”
Dr Ndiweni added that Zimbabwe’s manufacturing sector has long been constrained by erratic demand and competition from imports.
“Public procurement can change that equation. If industry knows that every tender for uniforms, pharmaceuticals or fertiliser will be met locally, you create economies of scale. It becomes rational for firms to expand, hire more people and innovate,” he added.
Economist Gladys Shumbambiri-Mutsopotsi framed the issue in fiscal terms. Linking procurement to local industry, she argued, has a multiplier effect on public finances.
“When local firms produce and supply, tax revenue accrues domestically, not offshore,” she explained. “That boosts the fiscus, supports social spending, and reduces the current account deficit. It is a virtuous cycle.”
She also flagged the dangers of shelf companies exploiting the current model. “Procurement that rewards only the registration of a company without checking manufacturing capacity invites rent-seeking,” she said.
“We need mechanisms that eliminate briefcase businesses which simply import and resell. That way, the system supports genuine producers, not intermediaries.”
The Buy Zimbabwe lobby insists that the solution lies not in abandoning preferential procurement, but in sharpening it. That could mean requiring firms to demonstrate actual production capacity, setting thresholds for local content, or even weighting tenders towards firms that show strong value addition.
Mr Hwengwere is optimistic that such a recalibration could deliver measurable growth. “If we anchor procurement on industry, manufacturing can multiply by three times,” he said.
Industry players believe this is not just about economics but national resilience. A stronger domestic industrial base reduces reliance on volatile global supply chains, insulates jobs, and aligns procurement with the country’s industrialisation agenda.
The Government spends billions of dollars annually through pub-lic procurement, making it a key instrument for driving industrialisation under Zimbabwe’s Vision 2030 strategy.
