Treasury freezes payments outside e-GP system

Treasury has directed all ministries, departments and agencies (MDAs) to conduct 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 effort to tighten financial controls, curb leakages and modernise the State's purchasing framework.

The directive represents one of the strongest enforcement measures 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 confirmed by the chief executive officer of the Procurement Regulatory Authority of Zimbabwe (PRAZ), Clever Ruswa, who said the country was entering a decisive phase in reforming how government 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 drive behavioural change among procurement officers accustomed to manual processes.

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

Ruswa described the rollout as part of a broader governance transition aimed at strengthening transparency and accountability.

"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 small firms that have historically struggled to access State tenders due to limited information and costly intermediaries.

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

However, officials acknowledge that adoption will require 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 roll out sector-specific training programmes this year to equip micro, small and medium enterprises with the skills needed to participate effectively in digital procurement. The initiative aims 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," he 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."

The capacity-building programme is being supported by the African Development Bank, reflecting growing alignment between Zimbabwe's procurement reforms and international standards on transparency and digital governance.

Analysts note that development finance institutions increasingly view electronic procurement systems as essential infrastructure for safeguarding public funds and ensuring accountability in projects they support.

Authorities believe the digitisation drive will ultimately strengthen fiscal discipline while broadening domestic industry participation in government contracts, a key lever for economic growth.

Ruswa linked the reforms to the objectives 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 depend largely on enforcement across a vast public sector where procurement practices have often been slow to evolve. By tying compliance directly to payment authorisation, Treasury has introduced a powerful incentive: without a digital audit trail, there will be no disbursement.

If rigorously implemented, the measure could mark a significant turning point in Zimbabwe's public financial management, transforming procurement from a paper-driven administrative process into a data-driven system anchored in accountability.