Cabinet approves amendment to strengthen public procurement

SAMANTHA MADE AND ROBIN PHIRI

Cabinet has approved a significant amendment to the Public Procurement and Disposal of Public Assets Act, marking a decisive step toward enhancing transparency, accountability, and efficiency in the country’s procurement system, Business Times can report.

The change, encapsulated in the Public Procurement and Disposal of Public Assets Amendment Bill, 2025, seeks to address critical gaps in the existing legislation while aligning procurement practices with international best standards and the Constitution of Zimbabwe.

The Bill, presented by the Minister of Justice, Legal, and Parliamentary Affairs, Ziyambi Ziyambi, introduces key reforms aimed at fortifying governance structures within the procurement system, reducing opportunities for corruption, and fostering a more competitive and transparent business environment.

One of the most significant provisions in the Bill is the prohibition of public procurement employees and their close relatives from participating in the acquisition of disposed public assets. This measure is designed to mitigate conflicts of interest and prevent undue influence that could undermine fair competition.

“Among other key amendments, the Bill introduces the restriction of employees and their relatives from participating in the procurement of disposed assets, thereby preventing potential conflicts of interest and undue influence. This move aims to promote transparency, fairness, and accountability in public procurement processes for ease of doing business while facilitating the country’s road to rapid industrialisation in pursuit of Vision 2030,” Information Minister Jenfan Muswere said.

This restriction is expected to create a level playing field by ensuring that procurement processes are conducted impartially, eliminating opportunities for insider trading and self-dealing.

By doing so, the government aims to strengthen investor confidence, both locally and internationally, and bolster the credibility of Zimbabwe’s procurement system.

Additionally, the amendment aligns procurement regulations with Zimbabwe’s broader economic development agenda, ensuring that public procurement contributes to the country’s industrialization, economic modernization, and overall ease of doing business.

The Public Procurement and Disposal of Public Assets Act plays a central role in regulating how government institutions procure goods and services, as well as how they dispose of assets. Through this amendment, the government is reinforcing governance structures within the procurement system by enhancing transparency and accountability.
The introduction of tighter regulatory controls will ensure that procurement decisions are subject to greater scrutiny. This will deter corruption, strengthen compliance mechanisms, and build trust in public procurement processes.
The amendment is also expected to eliminate bureaucratic inefficiencies that have hindered smooth procurement operations. By refining regulatory frameworks, the government is paving the way for faster decision-making and more efficient allocation of resources.

The move will also improve competitiveness in public procurement
A fair and open procurement environment will encourage greater participation from businesses, both local and foreign. By reducing opportunities for preferential treatment, Zimbabwe is positioning itself as an attractive destination for investors seeking transparency and predictability in government contracts.

With a focus on Vision 2030, which aims to transform Zimbabwe into an upper-middle-income economy, procurement reforms will support industrial growth by ensuring that contracts are awarded based on merit, rather than personal connections or influence.

Public procurement is a crucial driver of economic activity, influencing both government expenditure and private sector growth. In many developing economies, including Zimbabwe, government procurement accounts for a significant share of GDP, making it a critical tool for economic management.
By strengthening governance structures in procurement, Zimbabwe is sending a strong signal to foreign investors and development partners that the country is committed to good governance and transparency. International financial institutions, such as the World Bank and the African Development Bank (AfDB), often prioritize transparency in procurement as a prerequisite for funding public infrastructure projects.

Furthermore, a more stringent legal framework will curb procurement-related corruption, a longstanding issue that has resulted in financial mismanagement and revenue leakages in the past. By closing loopholes, the government stands to save billions of dollars in misallocated public funds.
With improved procurement regulations, local businesses will have a fairer opportunity to compete for government contracts. This will help in building stronger domestic supply chains, fostering entrepreneurship, and supporting local industries in line with Zimbabwe’s industrialisation and import substitution strategies.

Furthermore, the reforms ensure that public funds are spent judiciously is critical for Zimbabwe’s macroeconomic stability. By enforcing strict procurement rules, the government can reduce inefficiencies, ensuring that resources are directed toward high-priority infrastructure and social development projects.

The Public Procurement and Disposal of Public Assets Authority (PDPAA) remains the primary institution tasked with overseeing and regulating procurement activities across government departments. Under the revised Bill, its mandate will be further strengthened to enhance monitoring and enforcement mechanisms to ensure strict compliance with procurement laws, develop and implement policies that align with regional and international best practices in procurement governance, introduce digitalisation in procurement to increase transparency and reduce manual processes that can be exploited for corruption.

With the adoption of e-procurement systems, Zimbabwe could significantly improve its procurement efficiency, reducing paperwork delays and ensuring that transactions are traceable, auditable, and accessible in real-time.

Public procurement reforms will have a wider ripple effect on Zimbabwe’s overall business and investment climate. A transparent and accountable procurement system is one of the key indicators used by international investors when assessing the ease of doing business in a country.

By reducing procurement-related corruption and inefficiencies, Zimbabwe is likely to improve its standing in global business indices, such as the World Bank’s Ease of Doing Business Index, the Transparency International’s Corruption Perceptions Index and the Global Competitiveness Report.

Moreover, efficient procurement systems will help facilitate the implementation of major infrastructure projects, including roads, energy, water supply, and healthcare systems, which are essential for sustained economic growth.

The approval of the Public Procurement and Disposal of Public Assets Amendment Bill, 2025 marks a critical milestone in Zimbabwe’s ongoing efforts to strengthen governance and transparency in public sector procurement.

By addressing key gaps in the existing legal framework, the amendment is set to enhance fairness, accountability, and competitiveness in public procurement—an essential prerequisite for economic transformation.

With improved oversight mechanisms, digitalisation of procurement processes, and strengthened enforcement measures, the new legal framework will not only curb corruption but also unlock economic opportunities for businesses, promote industrial growth, and align public procurement with Zimbabwe’s Vision 2030 objectives.