Harare – The Procurement Regulatory Authority of Zimbabwe (PRAZ) has issued a directive compelling all government ministries, departments, and public entities to prioritize the procurement of goods and services from local producers and suppliers, in a move aimed at strengthening Zimbabwe’s formal economy and revitalizing domestic industry.
The directive, issued via Circular No. OPS/1 of 2025 dated 10 March, follows the Ministry of Finance’s press statement on 31 January and Cabinet’s endorsement on 11 February, both of which identified local procurement as a critical tool to counter informalisation and promote industrial growth.
Citing its mandate under Section 6(1)(j) of the Public Procurement and Disposal of Public Assets (PPDPA) Act [Chapter 22:23], PRAZ underscored the importance of integrating economic empowerment policies into procurement practices.
“In view of the above, the Authority supports measures to encourage all procuring entities (PEs) to procure works, goods and services from local producers and suppliers in order to support local industry,” read part of the circular signed by PRAZ Chief Executive Officer Dr. Clever Ruswa.
Under the new guidelines:
- Procuring entities may give preference to local suppliers when evaluating bids, in line with Section 29 of the PPDPA Act.
- Domestic preference will allow up to 20% advantage in the procurement of goods and 10% in contractor services, as set out in Section 8 of the General Regulations (S.I. 33 of 2022).
- Exclusive bidding by local suppliers is permitted where the procurement thresholds fall within set limits—for example, goods valued between US$10,000 and US$500,000, and construction works from US$20,000 to US$10 million.
PRAZ also urged the adoption of restricted bidding from pre-qualified local suppliers under Section 32(3a) of the Act, especially where requirements can be met by domestic sources.
The directive is seen as a strategic intervention to stimulate formal business operations and curb reliance on imports amid continued concerns about currency instability and the erosion of local industry capacity.
Dr. Ruswa stressed the importance of compliance:
“Accordingly, the Authority… directs all procuring entities with immediate effect to ensure that bidding documents and the electronic Government Procurement (eGP) system incorporate domestic preference clauses, and to uphold the procurement thresholds for local supplier-only tenders.”
