Treasury freezes payments outside e-GP system

LIVINGSTONE MARUFU

Treasury has directed all ministries, departments and agencies (MDAs) to execute public procurement exclusively through the electronic Government Procurement (e-GP) platform, warning that it will not process payments for contracts concluded outside the system in a sweeping move to tighten financial controls, curb leakages and modernise the State’s purchasing architecture.

The directive marks one of the strongest enforcement signals yet in government’s drive to overhaul public sector spending and restore discipline to procurement processes long criticised for opacity and weak oversight.

The development was revealed by the chief executive officer of the Procurement Regulatory Authority of Zimbabwe (PRAZ), Clever Ruswa, who said Zimbabwe was entering a decisive phase in reforming how the State acquires goods and services.

“This directive is not merely a guideline, it is an unequivocal commitment that we must uphold at all costs,” Ruswa said.

“All Public Entities must mandatorily adopt the eGP system when procuring. The Ministry of Finance, Economic Development and Investment Promotion has issued a circular clearly stating that it will not facilitate payments on procurements done outside the eGP system, let us take heed.”

The move signals Treasury’s intention to close procedural loopholes that have historically enabled opaque contracting, delayed payments, and weak audit trails across the public sector.

Under the new framework, PRAZ will enforce strict compliance rules stipulating that Treasury-funded contracts concluded outside the digital system will not be honoured, a measure expected to force behavioural change among procurement officers long accustomed to manual processes.

The eGP platform digitises the entire procurement lifecycle — from supplier registration and e-bidding to contract award and management — creating a centralised, traceable environment intended to improve efficiency while reducing opportunities for manipulation.

Ruswa described the rollout as emblematic of a broader governance transition.

“The implementation of the eGP system symbolises the government’s unwavering commitment to enhancing public procurement processes,” he said. “We must embed a culture of accountability and transparency that is vital for nurturing trust among our citizens and stakeholders.”

Beyond compliance, authorities argue the digital platform lowers entry barriers for businesses, particularly smaller firms historically excluded from State tenders due to limited access to information or costly intermediaries.

The unified online interface is designed to promote openness and accessibility, allowing suppliers to engage directly with government opportunities while standardising documentation and evaluation procedures.

However, officials acknowledge that adoption requires significant technical and institutional adjustment.

“Our commitment does not end with implementation,” Ruswa said. “It extends to the continuous capacity-building of all those involved.”

Ruswa said PRAZ will this year roll out sector-specific training programmes aimed at equipping Micro, Small and Medium Enterprises (MSMEs) with the skills needed to participate effectively in digital procurement.

The initiative seeks to address longstanding capacity gaps that have limited the competitiveness of smaller bidders.

“Through targeted training initiatives, we aim to address the capacity gaps that are often barriers to entry for many MSMEs,” Ruswa said. “This is about equipping our stakeholders — not just the regular users but everyone who touches the public procurement process — with the knowledge to excel.”

Training will focus on improving bid quality, strengthening understanding of procurement regulations, and promoting compliance and ethical standards across supply chains.

The capacity-building programme is being supported by the African Development Bank, underscoring growing alignment between Zimbabwe’s procurement reforms and international expectations around transparency and digital governance.

Analysts say development finance institutions increasingly view e-procurement systems as critical infrastructure for safeguarding public funds and ensuring accountability in projects they support.

Authorities believe the digitisation push will ultimately improve fiscal discipline while stimulating domestic industry participation in government contracts — a key lever for economic growth.

Ruswa linked the reforms to the ambitions of National Development Strategy 2, which prioritises institutional efficiency, private-sector participation and value-for-money public expenditure.

“By investing in our collective capacity, we advance not just the objectives of our organisations but the economic growth of Zimbabwe,” he said.

The success of the directive will now hinge less on policy design and more on enforcement across a sprawling bureaucracy where procurement habits have been slow to change.

By tying compliance directly to payment authorisation, Treasury has introduced a powerful incentive, no digital trail, no disbursement.

If rigorously applied, the measure could mark a watershed in Zimbabwe’s public financial management, transforming procurement from a paper-driven administrative function into a data-anchored system of accountability.