During fiscal deficits and recessions, when the pressure on the economy is profound, governments face budget shortfalls. The negative impact of a recession can also be amplified when a country, like Zimbabwe, faces overvalued exchange rates that mask the extent of underlying price pressures. Furthermore, a recently elected government has created substantial public expectations of change, and demand for greater transparency and accountability.
The public procurement reform program, supported by a two-million grant from the World Bank’s Zimbabwe Reconstruction Fund, has made significant progress in advancing reforms through a variety of actions : the enactment of a new Public Procurement Act as the anchor instrument of the legal framework; the development of practical tools for implementing the law, including standard bidding and contract documents; and the development of an Electronic Government Procurement strategy, also known as e-GP.
The old legal and institutional arrangements for Zimbabwe’s public procurement had a very high risk of encountering corruption in Zimbabwe’s public procurement sector. For example, irregular payments and governance issues in connection with the awarding of public contracts, as well as favoritism in the decisions of government officials are common, and public funds are often diverted for other purposes. (See the Global Competitiveness Report 2016).
The good news, however, is that the procurement reforms in Zimbabwe are making transformational changes by replacing the country’s old public procurement framework with a modern system that is more efficient, accountable, and transparent.
To date, specific accomplishments in modernizing the public procurement system in Zimbabwe include the following:
To ensure the proper implementation of the new public procurement system, the World Bank supported the establishment of the Procurement Regulatory Authority of Zimbabwe (PRAZ), including a plan for developing quick wins during the first 100 days and a five-year Strategic Plan (2019-2023) that identifies five objectives:
It is significant how Zimbabwe is succeeding in reforming its public procurement system while simultaneously facing multi-faceted challenges marked by a series of political, economic, and financial shocks. The adoption of the new procurement legal framework and the establishment of PRAZ with a board of directors representing all regions in the country, as well as from the public and private sectors, with a majority of women representation, clearly demonstrate the cultural changes in institutional arrangements in Zimbabwe’s public sector.
These reforms are trendsetters for broader governance reforms in Zimbabwe but can also be a model to follow by other countries in the region, or the world.