Minister warns against abuse of procurement price exemptions

Industry and Commerce Minister Nqobizitha Ndhlovu has warned that some public entities are circumventing the National Standard Price List (NSPL) through poorly justified exemptions, undermining government efforts to curb inflated procurement costs and improve accountability.

Speaking at the opening of the 5th Procurement Regulatory Authority of Zimbabwe Symposium in Bulawayo on Thursday, Ndhlovu said the practice threatens the effectiveness of procurement reforms designed to ensure value for money in public spending.

The NSPL was introduced as part of broader reforms aimed at promoting transparency, reducing excessive pricing and strengthening oversight in public procurement. The framework provides benchmark prices for commonly procured goods and services, enabling procuring entities to assess whether supplier quotations reflect prevailing market conditions.

"The National Standard Price List is a transformative reform in our public procurement system. When applied consistently and effectively, it serves as a powerful tool for promoting value for money, eliminating inflated quotations, and disrupting collusive bidding practices that undermine public confidence and waste scarce national resources," Ndhlovu said.

"However, I am aware that some procuring entities continue to circumvent its application by invoking vague or inadequately justified ‘special circumstances'. This practice must come to an end."

The minister announced that any deviation from the price list will now require approval from accounting officers and must be supported by a detailed written economic justification explaining why the exemption is necessary and serves the public interest.

"Accountability for these decisions must be clear, documented, and subject to scrutiny," he said.

Ndhlovu said strengthening pricing discipline in procurement is essential to ensuring prudent management of public funds and maximising the impact of government expenditure.

"Our objective is straightforward. We want procurement outcomes that demonstrate prudent stewardship of public funds. Every procurement dollar saved through transparent and disciplined pricing controls is a dollar that can be redirected towards essential public services, infrastructure development, and economic growth," he said.

The minister also urged government departments, state agencies and PRAZ to prioritise local suppliers under a "Local Manufacturing First" approach.

He argued that public procurement should be leveraged as a strategic tool to support industrialisation, create employment and stimulate economic growth.

"Wherever Zimbabwean industry possesses the capacity, quality standards, and reasonable cost competitiveness to supply goods and services, preference should be accorded to local producers and manufacturers, even where they may not be the absolute lowest-cost option," Ndhlovu said.

He emphasised that the policy is not intended to shield local businesses from competition but rather to use public procurement strategically to strengthen domestic production and value chains.

"This is not a call for protectionism. Rather, it is a call for strategic developmental procurement, the deliberate use of public procurement as a catalyst for industrial growth, employment creation, innovation, and economic transformation," he said.

Public procurement accounts for a substantial share of government spending, making effective pricing controls a critical component of efforts to improve efficiency and ensure resources are directed towards national development priorities.

Zimbabwe's renewed focus on procurement discipline mirrors broader trends across Southern Africa, where governments are tightening oversight mechanisms in response to fiscal pressures and concerns about wasteful expenditure.

Countries such as South Africa, Botswana, Zambia and Namibia have introduced reforms including digital procurement systems, stricter auditing requirements and enhanced disclosure measures aimed at improving transparency and reducing corruption risks.

At the same time, many governments in the region are increasingly using procurement as an industrial policy instrument, introducing local content requirements and preferential procurement programmes to support domestic industries and job creation.

Despite these reforms, procurement authorities continue to face challenges such as bid-rigging, inflated pricing, limited supplier competition and weak regulatory enforcement.

Analysts say striking the right balance between transparency, competition and industrial development remains one of the key challenges facing procurement regulators across the region as governments seek to maximise the developmental impact of public spending.