By Conrad Mwanawashe
Zimbabwe has taken a bold move to address indiscipline in public procurement by closing gaps of wide price variations for commonly procured goods, plugging forward pricing and speculative behaviour.
This will be achieved through collaboration between the Procurement Regulatory Authority of Zimbabwe (PRAZ) and the National Competitiveness Commission (NCC).
The two organisations have signed a Memorandum of Understanding (MoU) which will result in the development of a National Market Price List for commonly procured goods and services in order to assist procuring entities to make procurement decisions.
“So with this, what we are trying to achieve again is to say whoever is now trying to deviate from those fundamentals, we are saying can you justify, if you want to do public procurement, can you justify where are you getting this kind of pricing. So that’s how we envisage our partnership to go forward, so going forward,” said PRAZ CEO Clever Ruswa.
“As we sign this MOU today, we are doing so to address the gaps of wide price variations commonly procured goods and enhance value for money in accordance with the PPDPA Act and the NCC Act.”
NCC Executive Secretary, Phillip Phiri said the MoU is not just a document but a symbol of mutual trust and a roadmap for future endeavours.
“This partnership is about those people that are exploiting the system, that are forward pricing, that are using very high prices, maybe speculating or seeking behaviour.
“That is what we are trying to address. And from NCC, how we are going to be feeding into prices, for each and every commonly procured good, we will come up with a price index based on evidence. If the cost drivers that are currently existing within the economy want to see a price increase, then we will be able to say to price, take this price because it is not caused by the supplier, it is caused by the environment that we are in,” said Phiri.
He added that the MoU outlines shared goals and the framework within which the partnership will work to achieve them.
The two institutions will;
- Share information with respect to pricing trends so as to identify cost drivers in order to address current and emerging cost challenges;
- Come up with recommendations for reviewing relevant regulations to enhance pricing that achieves value for money; and
- Produce periodic benchmarking price indexes with a view to compare prices within the SADC region.
PRAZ is mandated to regulate public procurement so as to ensure transparency, fairness, honesty, cost-effectiveness and Competitiveness in public procurement and disposal of public assets as required by Section 315 of the Zimbabwean Constitution and more specifically by the Public Procurement and Disposal of Public Assets (PPDPA) Act [Chapter 22:23].
NCC’s mandate is to enable the creation of a competitive environment for Zimbabwean business through development, coordination and implementation of the key policy improvements required for domestic, regional and global competitiveness.
Objectives of the MOU
Collaboration on Market Price List Development
Establish a framework for both PRAZ and NCC to jointly create a comprehensive National Market Price Lists for commonly procured goods and services.
Enhancing Procurement Decisions
Assist procuring entities in making informed procurement decisions that prioritize value for money, thereby improving the efficiency and effectiveness of public procurement.
To produce periodic benchmarking price indexes with a view to give a comparison of prices within the SADC region
To share information with respect to pricing trends so as to identify cost drivers in order to address current and emerging cost challenges
To develop recommendations for reviewing relevant regulations to enhance best pricing that achieves value for money
To produce periodic benchmarking price indexes
Supporting National Development Agenda
Align the efforts of both agencies with the national development agenda, leveraging public procurement as a strategic tool for socio-economic growth.
Fostering Industry Competitiveness
Provide evidence-based policy advice and recommendations that enhance the productivity and competitiveness of Zimbabwean goods and services in both domestic and international markets.
Promoting Transparency and Accountability
Enhance transparency and accountability in public procurement processes through standardized pricing information, reducing opportunities for corruption and inefficiency.
Capacity Building
Develop training and capacity-building initiatives for procuring entities to improve their understanding and application of the National Market Price List.
Monitoring and Evaluation
Establish mechanisms for the ongoing monitoring and evaluation of the National Market Price List’s impact on procurement practices and industry competitiveness.
Stakeholder Engagement
Facilitate engagement with relevant stakeholders, including industry representatives, to ensure the National Market Price Lists reflect current market conditions and needs.
This MOU highlights that we will have a joint technical committee and an operational strategy amongst other issues.
