FACULTY OF BUSINESS SCIENCES
DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
MODULE: RISK MANAGEMENT LSC 233
TASK: INDIVIDUAL ASSIGNMENT
SUBMITTED BY: DOROTHY CHAGAKA R243054F
LEVEL: 2.1
ACADEMIC YEAR: 2025
LECTURER: MRS MUKUTIRI
ESSAY QUESTION: Examining the Risks Associated with Public Procurement in
Zimbabwe and Suggesting Mitigatory Measures
Introduction
For aspiring supply chain professionals, such as us students of logistics and supply chain
management at MSU, a profound understanding of supply chain risk management goes
beyond a mere academic exercise, it must be ingrained in us as a fundamental skill that
shapes our ability to navigate procurement environments effectively. Risk management in
supply chain management refers to the strategic identification, assessment, and mitigation of
potential threats that could disrupt the flow of goods, services, or financial resources within a
supply chain and it involves proactive planning to minimize vulnerabilities, ensuring
operational continuity and efficiency (Jere, Msipa, and Mazhazhate, 2021). Therefore,
effective risk management in supply chains enhances resilience by addressing uncertainties
such as supplier reliability, regulatory compliance, and financial constraints. According to
Shonhe and Bayat (2017), supply chain disruptions, financial mismanagement, regulatory
non-compliance, and supplier inefficiencies are SCM challenges that can undermine
operational success of organisations requiring professionals to be able to identify the risks
and come up with solutions to mitigate them. This essay aims to give us students the ability to
identify the risks and come up with solutions to mitigate them in the Zimbabwean public
procurement system.
This section at this juncture defines the main term of the essay which is public procurement.
Zinyama and Hamadziripi (2023), constitutes the structured process by which governments
acquire the necessary goods, services, and works to fulfill their societal obligations,
encompassing planning, contract placement, and administration. Zimbabwe's public
procurement framework is primarily legislated through the Public Procurement and Disposal
of Public Assets Act (PPDPA, No. 5 of 2017), which seeks to enshrine principles of cost-
effectiveness, competition, transparency, and fairness, as mandated by Section 315 of the
Constitution of Zimbabwe (2013) (Zinyama & Hamadziripi, 2023). At the apex of this
procurement regulatory system sits the Procurement Regulatory Authority of Zimbabwe
(PRAZ), which was established under Section 5 of the PPDPA, and is an organisation which
wields the mandate to regulate procurement activities, provide legal counsel, issue technical
guidelines, and ensure adherence to the PPDPA and associated legislation (PRAZ, 2018;
Zinyama & Hamadziripi, 2023). PRAZ ostensibly plays a pivotal role in fortifying corporate
governance and accountability within public resource management, striving for a public
procurement milieu characterized by efficiency, equity, effectiveness, and robust
competition. As such, the PPDPA outlines a panoply of procurement methodologies intended
to cater to diverse procurement needs. Despite these seemingly well-articulated mechanisms,
the practical implementation of Zimbabwe's public procurement system has been consistently
undermined by a confluence of exogenous and endogenous factors, particularly during
periods of economic turbulence and crises. The COVID-19 pandemic, for instance, threw into
sharp relief the inherent vulnerabilities within consolidated procurement approaches, as
evidenced by Treasury Circular No. 7 of 2020, which aimed to streamline processes but often
succumbed to opacity and inefficiency (Duri, 2022). Furthermore, the spectre of
hyperinflation has wreaked havoc on procurement thresholds, rendering budgetary planning
and pricing exercises precariously unpredictable, a challenge reflected in the struggles of
Statutory Instrument (S.I.) 49 of 2020 to adapt to the challenging economic climate in
Zimbabwe (Munyede & Mapuva, 2020; Duri, 2022). Subsequent statutory instruments, such
as S.I. 85 of 2020 (aiming for USD payments) and later instruments like S.I. 33 of 2022, S.I.
127 of 2021, and S.I. 299 of 2021, represent attempts to stabilise this volatile framework,
enhance compliance, and address persistent inefficiencies that have long bedevilled the public
procurement landscape in Zimbabwe. The following section outlines the risks in the public
procurement systems of Zimbabwe.
Major Risks in Zimbabwe's Public Procurement System
Zimbabwe’s public procurement system is fraught with challenges that threaten transparency,
efficiency, and financial integrity as outlined in the sections below.
1. Political Interference in Procurement Processes
Procurement decisions in Zimbabwe are frequently skewed by political considerations rather
than economic merit and this is a significant risk in public procurement in Zimbabwe. The
study by Jere, Msipa and Mazhazhate (2021), outlines that government contracts are often
awarded based on political alliances, sidelining competent suppliers and this interference
distorts market competition and undermines procurement efficiency. This is also supported
by Chilunjika et al (2021), who outlined that in most cases, access to public contracts in
developing countries serves as a means of financing political parties and rewarding political
party supporters. Similarly, BPRA (2010) confirms this by noting that, the current dubious
empowerment wave has meant that very few Zimbabweans from one political party have
benefitted from government programmes and tender processes on behalf of all Zimbabweans
and Chilunjika (2021), outlines that the Dema Diesel Power Project confirms that the contract
for such tender was awarded to former president Mugabe’s son-in-law without going to
tender, thereby discounting the country’s laws.
2. Weak Enforcement of Regulatory Frameworks
Despite having structured procurement laws as outlined in the section above, Zimbabwe’s
enforcement mechanisms remain ineffective which poses a significant risk to the country’s
supply chain sector. Regulatory agencies like the PRAZ and ZACC lack adequate resources
and operational independence to enforce compliance (Benviolent & Smallwood, 2016). As
such, many government ministries fail to adhere to procurement policies, leading to
unchecked financial mismanagement and procedural violations. A practical case illustrating
this is the frequent awarding of tenders to companies without due diligence, resulting in non-
delivery of essential services such as road rehabilitation projects.
3. Corruption and Lack of Transparency
A fundamental risk undermining Zimbabwe’s procurement system is corruption, which
pervades bidding processes and contract allocations. Public tenders are often influenced by
bribery, favoritism, and manipulation, leading to inflated costs and compromised service
delivery and the lack of publicly accessible data on tender awards exacerbates secrecy,
fostering an environment where illicit practices thrive unchecked (Shonhe & Bayat, 2017).
Practical evidence of such corruption is observed in politically linked entities such as Intratek
and Sakunda, receiving lucrative contracts without fair competition, resulting in poor
infrastructure development and mismanagement of public funds and these scandals dates
back to the 1990s with the construction of the Robert Mugabe Airport and the Gwanda solar
power station project.
4. Supplier Reliability and Quality Control Challenges
Government procurement in Zimbabwe often suffers from unreliable suppliers delivering
substandard goods or failing to meet contractual obligations which stems from poor vetting
and monitoring mechanisms thereby allowing incompetent suppliers to exploit public funds
without accountability (Chilunjika et al, 2023), for instance, several health-sector
procurement contracts for medical supplies have led to stockouts in hospitals due to
inadequate supplier capacity, severely impacting public healthcare services.
5. Budgetary Constraints and Financial Mismanagement
Limited financial resources and poor budget planning contribute to inefficiencies in
procurement and poses a risk to the ease of doing business in Zimbabwe and this is supported
by Shonhe and Bayat (2017), who outlined that delays in payments to contractors, coupled
with cost overruns, disrupt service delivery and a practical example is the ongoing delays in
key infrastructure projects such as housing schemes due to funding shortages, leaving
incomplete structures despite substantial financial allocations. As such, we obtain that these
financial inefficiencies further diminish public trust in procurement governance.
The procurement risks outlined in this section underscore the systemic weaknesses that
require urgent reform and the next section focuses on addressing these challenges is critical to
ensuring Zimbabwe’s procurement system effectively serves public interests and safeguards
national resources.
Mitigatory Measures for Public Sector Procurement in Zimbabwe
Given the significant risks undermining Zimbabwe’s public procurement system as outlined
above, there is a serious need for implementing mitigation strategies. As such, the following
measures address the key procurement risks outlined earlier and offers a practical solution
that improve the sector's functionality and support sustainable economic development of the
country.
1. Strengthening Regulatory Enforcement
Weak enforcement of procurement laws enables corruption and inefficiencies to thrive as
outlined in the section above. Therefore, there is a need for strengthening the regulatory
oversight by equipping agencies such as the PRAZ and ZACC with adequate resources and
autonomy is essential for improving compliance (Benviolent & Smallwood, 2016).
Moreover, there is need for implementing stricter penalties for non-compliance and ensuring
that procurement audits are conducted regularly to deter fraudulent activities and uphold
accountability in the system.
2. Depoliticising Procurement Processes
The risk outlined above, showed that in the country and other developing countries have
unwarranted political interference in procurement decisions that distorts market competition
and rewards favoritism over merit. The study by Jere et al (2021), outlines that there is need
for establishing independent oversight committees to review tender allocations to reduce
undue political influence. Furthermore, Chilunjika et al (2021), outline that there is need for
mandating open and competitive bidding processes for all high-value contracts ensures that
suppliers are selected based on quality and capacity rather than political affiliations.
3. Enhancing Transparency and Public Access to Information, Supplier Vetting and
Contract Management
From the sections above, we note that a lack of transparency allows corruption to thrive and
the study by Chilunjika et al (2023), outlines that there is need for establishing digital
procurement platforms and e-procurement systems to improve information accessibility and
reduce discretionary decision-making because this public access to procurement data,
including awarded contracts, bid evaluation criteria, and budget allocations, fosters
accountability and deters illicit practices. The study by Shonhe and Bayat (2017) outlines that
the reliability of suppliers is crucial in ensuring quality service delivery such that there is
need for the country to standardise supplier vetting processes through stringent qualification
criteria and due diligence reviews prevents incompetent contractors from exploiting public
funds. Additionally, performance-based contracts can be introduced, ensuring that suppliers
fulfill their obligations before receiving payments, thereby improving procurement efficiency
in sectors such as healthcare and infrastructure development.
4. Strengthening Financial Planning and Budgetary Controls
Budget constraints and financial mismanagement disrupt procurement efficiency and project
execution and were noted to be a significant supply chain risk, therefore, there is a need for
strengthening financial planning mechanisms, including proper forecasting and risk-adjusted
budgeting to minimize delays in payments and cost overruns (Shonhe & Bayat, 2017).
Moreover, they is a serious need for regular financial audits and expenditure tracking to
further enhance fiscal discipline and prevent misallocation of resources by entities which are
awarded public contracts and this prevents shady jobs and supply of sub-standard goods
which stifles the government’s ability to provide seamless service.
Implementing these mitigation strategies, has the potential to make Zimbabwe’s public
procurement system to overcome existing challenges and create a more efficient, transparent,
and accountable supply chain environment.
Conclusion
From the above sections we observe that this essay successfully examined the risks
associated with Zimbabwe’s public procurement system and offered mitigatory measures to
address them. The second section identified five major procurement risks and analysed their
implications and the third question presented clear strategies for managing these challenges,
thereby demonstrating how reforms enhance governance and operational efficiency and this
shows that the discussion in this essay was comprehensive and fulfilled the objective of
evaluating procurement risks and proposing viable solutions. In conclusion, from this essay
we note that immediate and decisive reforms are necessary to restore confidence in public
procurement and ensure the responsible use of national resources and to enhance Zimbabwe's
public procurement system by implementing risk management strategies like depoliticising
tender processes and bolstering transparency and oversight are essential steps for a more
efficient and accountable supply chain environment.
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