NCC, PRAZ partner to tackle procurement price dist...

NCC, PRAZ partner to tackle procurement price distortions

Oscar J Jeke

Zim Now Reporter

The Procurement Regulatory Authority of Zimbabwe and the National Competitiveness Commission have signed a Memorandum of Agreement designed to tackle price distortions and wide variations in the procurement of goods and services.

This partnership will lead to the development of a National Market Price Index for commonly procured items and the creation of periodic benchmarking price indexes.

These initiatives are aimed at addressing challenges such as forward pricing and discrepancies arising from economic volatility.

Speaking at the signing ceremony, PRAZ Chief Executive Officer Clever Ruswa emphasized that this collaboration will help provide detailed market price lists, offer informative advice to procurement entities, and establish regionally acceptable benchmark prices. This will ultimately improve the efficiency of Zimbabwe's public procurement system and processes.

"Both agencies are crucial to driving the national development agenda. Public procurement will serve as a strategic socio-economic policy lever, aligning with NCC’s objective of offering evidence-based policy advice and creating an enabling environment that enhances industry productivity and the competitiveness of Zimbabwean goods and services both locally and globally," Ruswa noted.

His NCC counterpart, Phillip Phiri, also reiterated the will of both agencies to promoting transparency and accountability through the MOA.

"We are looking at price range and not control, we will look to tame forward pricing and distortions through giving comparative pricing from those in the region so as to develop a benchmark on procured goods and services.

“The signing of this MOA represents a significant milestone in our collaborative efforts and a testament to our shared vision and commitment, as we join forces to come up with a market price index for commonly procured goods and services in order to assist procuring entities to make procurement decisions which achieve value for money.”

Permanent secretary in the Ministry of Industry, Dr Tom Ushe Utete applauded the development, noting that seeing it come to realty is a dream, as it will drive the development agenda forward, while imploring the youth and young generation to take serious such development initiatives, that require them to foster continuity for the greater good of the country.

The MOA has set out to enhance market competitiveness and contribute to the overall economic development of the country, with both agencies signing to commit, act and achieve set out goals.