On 25 July 2025, the Public Procurement and Disposal of Public Assets Amendment Bill 2025 was published in the Government Gazette, with some proposed changes to the existing Act. In short we highlight these new proposed changes to the Act;
DEFINITIONS- Section 2
The most significant proposed amendment in this section is the introduction of a definition for “disposal” within the Act—a term that was previously undefined. Under the amendment, “disposal” is defined as “the disposal or divesting of the asset by the State or public entity in which the asset is vested, whether the disposal or divesting is effected by sale, lease, franchising or any other means.”
This definition enhances legal clarity and ensures consistency in interpretation. Notably, it confirms that any form of divestment including leasing or franchising of public property must be conducted through a public procurement process. This reinforces transparency and accountability in the management of public assets.
MINISTERIAL POWERS- Section 3
This amendment repeals the provision that empowered the President to withhold public disclosure of procurement information on the grounds of public security, defence, or national interest. In its place, the authority to make such declarations is proposed to be vested in the Minister of Finance and Economic Development.
This shift from presidential to ministerial discretion is aimed at improving administrative efficiency, governance, and the overall functioning of the Procurement Regulatory Authority of Zimbabwe (PRAZ). It reflects a move toward a more decentralized and responsive decision making framework within the procurement system.
Additionally, the amendment introduces a requirement that when PRAZ exempts a procuring entity from publicly disclosing procurement details, the entity must inform all bidders of this exemption and instruct them not to disclose any details related to the exempted procurement. This promotes procedural transparency among participants while maintaining necessary confidentiality.
AUTHORIZATION TO CONDUCT PROCUREMENT- Section 15
Section 15 of the Act requires that any procuring entity initiating procurement proceedings involving a value at or above a prescribed threshold must obtain prior authorization from the Procurement Regulatory Authority of Zimbabwe (PRAZ). This authorization is valid for a period of two years from the date of issuance and was renewable every two years.
The proposed amendment seeks to reduce the validity period of such authorization from two years to one year. This change is likely intended to strengthen oversight and ensure that high-value procurement activities remain subject to more frequent review and updated compliance with evolving procurement standards and priorities.
PARTICIPATION BY BIDDERS- Section 28
This section proposes to align the procurement legislation with Section 56(3) of the Constitution by amending the current non-discrimination clause. The existing provision states that “except as prescribed under this Act or any other enactment, bidders shall be permitted to participate in procurement proceedings without regard to nationality.”
The proposed amendment seeks to replace this with:
“Except as prescribed under this Act or any other enactment, bidders shall be permitted to participate in procurement proceedings without unfair discrimination on any ground specified in Section 56(3) of the Constitution.”
Section 56(3) of the Constitution prohibits discrimination on various grounds, including nationality, race, place of birth, ethnic or social origin, language, class, religion, belief, political affiliation, opinion, custom, culture, sex, gender, marital status, age, pregnancy, disability, or economic or social status.
This amendment broadens the scope of protection against discrimination in procurement processes and brings the legislation into closer conformity with constitutional guarantees of equality and non-discrimination.
DOMESTIC PREFERENCE- Section 29
There is a significant change to this Section, which previously provided that a procuring entity may give preference to bids from Zimbabwean or local suppliers and manufacturers.
The new amendment now adds a qualification that “a procuring entity shall give preference to bids from Zimbabweans or local suppliers and manufacturers provided their bids meet the requirements of the procurement”.
The reference to the Indigenisation and Economic Empowerment Act (Chapter 14;33) has now been repealed.
There are new proposed amendments which make reference to the requirement to take into account local suppliers and manufacturers who are Veterans of the liberation struggle or entities controlled predominantly by Veterans of the liberation struggle, as well as the requirement to take into account local suppliers who are youths or entities controlled predominantly by youths. Although the bill does not define the word “youth”. There is also a requirement to take into account local suppliers or manufacturers who are persons with disabilities or entities controlled predominantly by people with disabilities.
The amendment further proposes an inclusion to the effect that “with regard to the procurement of construction work, ensure that where a foreign supplier is awarded the procurement contract, the foreign supplier engages one or more local subcontractors and transfers to them the technology and skills necessary to carry out the procurement contract”. This proposed new inclusion is critical for knowledge and skills transfer within the country.
SPECIAL PROCUREMENT OVERSIGHT COMMITTEE- Section 54
A proposed amendment seeks to alter the composition and quorum requirements of the Special Procurement Oversight Committee (SPOC).
Currently, the SPOC comprises the following members (or their authorised delegates, each at the level of Director or above):
- The Attorney General,
- The Auditor General,
- The Accountant General, and
- The Principal Director of Public Works.
The amendment proposes two key changes:
(a) Composition Change
The Auditor General (or delegate) is to be removed from the Committee and replaced by the Chief Director or equivalent from the Ministry responsible for Information Communication Technology, or their authorised delegate. This change likely reflects a shift toward incorporating ICT expertise in oversight of procurement, possibly due to the increasing digitalisation of procurement systems.
(b) Quorum Adjustment
A new provision is introduced stating that “two members of the SPOC shall form a quorum at any meeting of the Committee.”
Previously, all four members were required to be present for the Committee to convene, meaning this amendment significantly lowers the threshold for decision making and may enhance the efficiency and responsiveness of the SPOC, albeit potentially at the expense of broader oversight.
CONTRACT AWARD, INFORMATION TO BE GIVEN TO REJECTED BIDDERS, CHALLENGE TO PROCUREMENT PROCEEDINGS, REVIEW BY REVIEW PANEL – (Section 55, Section 67, Section 73, Section 76)
The Bill proposes amendments to several procedural timelines within the procurement process, reducing the current 14-day periods to 10 days across multiple provisions. These changes affect the following key areas:
(a) Contract Award
Under the current Act, a contract may not be signed until at least 14 days have passed following the notification of award to all bidders. The amendment reduces this waiting period to 10 days, thereby shortening the standstill period before contract execution.
(b) Information to Rejected Bidders
Presently, a rejected bidder may request information related to the outcome of the procurement process, and the procuring entity must respond within 14 days of the notification of award. This response period is proposed to be shortened to 10 days.
(c) Challenge to Procurement Proceedings
The Act currently allows any party to lodge a challenge within 14 days of the issuance of a notice of award. The amendment proposes to reduce this challenge period to 10 days from the date of notification.
(d) Review Panel Proceedings
The review panel is currently required to conduct investigations, hold hearings, and issue a written decision with reasons within 14 days of receiving a challenge application. The proposed change reduces this period to 10 days.
The primary objective of these amendments is to promote efficiency and expedite the resolution of procurement processes, thereby reducing delays in contract finalisation and enhancing the responsiveness of both the procuring entities and the Procurement Regulatory Authority of Zimbabwe (PRAZ).
NOTIFICATION OF CONTRACT AWARD- Section 68
There is a proposed amendment by insertion of a new provision in this Section, which states that a procuring entity shall within one month of awarding contract, publish a Notice of Award, regardless of whether such procurement was done through direct procurement, restricted bidding, framework agreements or consultancy agreements. This ensures transparency, especially where procurement was done by way of direct procurement, entities will now be required to publish a Notice of Award.
CONDUCT OF BIDDERS AND CONTRACTORS- Section 72
This new proposed amendment seeks to include a duty on the bidders and contractors to act in good faith, and not provide false or misleading information in any documents submitted to procuring entity, if they become aware of such false, incorrect or misleading statement in a document, they must notify the procuring entity and take steps to rectify such statement.
Penalties with respect to providing such false and misleading information are contained in Section 49 of the Act which entitles the procuring entity to reject such bids.
PAYMENT OF SECURITY FOR COSTS- Section 74 (4) (b)
Amendment of Section 73(4) (b) which requires payment of security for costs by challenger to the procuring entity, will now be amended to payment of such security for costs to the Authority, instead of to the procuring entity.
DISPOSAL OF ASSETS TO EMPLOYEES ETC- Section 92
There is a proposed amendment to section 93 of the Act which restricts disposal of assets to employees, members of Board, Council or any of its Committees, to include a relative of any such person.
FIRST SCHEDULE
Appointment of Corporate Secretary
There is a proposed amendment by inclusion of 12A , being the appointment of a Corporate Secretary with specified qualifications. The functions of the Corporate Secretary largely currently vest in the Chief Executive Officer of the Authority.
GENERAL COMMENTS
The proposed amendment gives seeks to enhance functions of the procuring entity as well as the Authority by imposing shorter and stricter timelines as well as delegation of powers and functions within the Authority. The provisions are very crucial in the administration process to ensure transparency and accountability within the public procurement space in Zimbabwe.
For assistance on matters related to the proposed amendments or procurement law in general, kindly contact Muvingi Mugadza's Corporate Law Practice Group on info@mmmlawfirm.co.zw
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