Zimbabwe: Public Procurement Amendment Bill 2025 Passes, Targets Defaulting Contractors

• Zimbabwe is introducing the Public Procurement and Disposal of Public Assets Amendment Bill, 2025, to prevent defaulting contractors from winning new government tenders.
• The Bill mandates all Ministries, Departments, and Agencies (MDAs) to check the PRAZ debarment list before awarding public contracts.
• Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi stated these reforms aim for tighter, more transparent, and accountable public spending.
• PRAZ's role will expand to include evaluating MDA compliance with procurement rules, alongside its regulatory functions.
• The legislation also introduces annual procurement plan approvals and allows the Minister to keep certain procurement information private for national interest.

The core of these changes mandates that all Ministries, Departments, and Agencies (MDAs) must consult the Procurement Regulatory Authority of Zimbabwe (PRAZ)'s debarment list before awarding any public contract, a critical step towards ensuring greater integrity in government dealings.

The Zimbabwean government is implementing significant reforms to its public procurement system, aiming to prevent contractors who have failed to deliver on previous projects from securing new government tenders. This initiative addresses a long-standing issue where entities defaulting in one ministry could simply obtain contracts in another, undermining accountability and efficient public spending. The core of these changes mandates that all Ministries, Departments, and Agencies (MDAs) must consult the Procurement Regulatory Authority of Zimbabwe (PRAZ)'s debarment list before awarding any public contract, a critical step towards ensuring greater integrity in government dealings.

Justice, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi recently presented these proposed amendments to the National Assembly. The changes are encapsulated within the Public Procurement and Disposal of Public Assets Amendment Bill, 2025, which has successfully passed through the National Assembly after thorough debate by Members of Parliament. The legislative proposal now awaits consideration and debate in the Senate before it can be enacted into law, marking a pivotal moment for Zimbabwe's procurement landscape.

Minister Ziyambi emphasized the government's commitment to enhancing the operational effectiveness of the existing debarment system. The primary objective is to ensure that all procuring entities consistently refer to the debarment lists prior to awarding contracts. Furthermore, the reforms aim to facilitate the comprehensive sharing of information regarding Zimbabwe defaulting government contractors across all MDAs, thereby creating a unified approach to identifying and excluding non-performing suppliers from future opportunities.

While the power to ban non-compliant contractors already exists under current procurement regulations, allowing PRAZ to suspend or blacklist companies for improper conduct—such as receiving payment without delivering goods or services—the new Public Procurement and Disposal of Public Assets Amendment Bill, 2025, introduces a crucial mandatory element. This amendment makes it compulsory for every government department to check the PRAZ debarment list Zimbabwe before finalizing any agreement, moving from a discretionary practice to a strict requirement. This ensures that the existing legal provisions are consistently applied across the board, significantly tightening the oversight mechanism.

Minister Ziyambi clarified that these updated legal provisions are designed to complement, rather than replace, existing legal actions for breach of contract. Instead, they work in conjunction to fortify oversight and safeguard public funds. The comprehensive Zimbabwe Public Procurement Amendment Bill 2025 also introduces several other key adjustments to the procurement framework. One notable change grants the Minister the authority to withhold certain procurement information from public disclosure if its release could potentially compromise national interests, while simultaneously obligating bidders to maintain the confidentiality of sensitive details.

Furthermore, the PRAZ debarment list Zimbabwe will play a central role in an expanded mandate for the Procurement Regulatory Authority of Zimbabwe. PRAZ's role is being broadened beyond mere regulation to include the evaluation of how effectively government departments adhere to procurement rules. This shift empowers PRAZ to not only set standards but also actively assess compliance, thereby enhancing accountability. Another significant reform requires government departments to seek approval for their procurement plans annually, rather than biennially. This adjustment is intended to align procurement planning more closely with the annual budget cycle, making it easier to track and manage public spending. Additionally, the Bill removes the necessity for departments to incorporate international standards into their tender documents when such standards are not relevant, a move aimed at reducing unnecessary bureaucratic hurdles and streamlining the tendering process.

The Minister Ziyambi procurement reforms are fundamentally geared towards achieving tighter, more transparent, and ultimately more accountable public spending. This objective is particularly pertinent as the government intensifies its infrastructure development projects under the National Development Strategy 2. By ensuring that information about contractors who violate procurement rules is shared across all government arms, the new legislation aims to prevent any department from inadvertently engaging a previously defaulting entity, thereby protecting public resources and project timelines.

The government's overarching goal with the Zimbabwe Public Procurement Amendment Bill 2025 is to enact legislation that serves the people of Zimbabwe effectively, transparently, and fairly. The parliamentary scrutiny during the Bill's passage through the National Assembly was instrumental in refining its provisions, reflecting a collaborative effort to strengthen governance. The mandatory check of the PRAZ debarment list Zimbabwe, coupled with the expanded role of PRAZ and other procedural adjustments, represents a robust effort to enhance integrity and efficiency in public contracting. This ensures that only reputable and capable entities are awarded government work, fostering greater confidence in the public procurement system.

Companies bidding for government contracts in Zimbabwe must ensure they are not on the PRAZ debarment list, as the Public Procurement and Disposal of Public Assets Amendment Bill, 2025, will make it mandatory for all Ministries, Departments, and Agencies (MDAs) to consult this list before awarding contracts. Legal and compliance teams should prepare for stricter oversight, increased transparency requirements, and the expanded regulatory and evaluative role of PRAZ, advising clients on the implications for tender participation and compliance.

Source: Original reporting via New Zimbabwe