Local companies domestic tender limit raised to US$10m
LOCAL companies will now be able to bid for domestic tenders of up to US$10 million procurement value for public construction works after Government increased the threshold from US$5 million.
Previously, domestic tenders were invited for procurement values of between US$20 000 and US$5 million for construction works, US$10 000 and US$300 000 for goods and US$5 000 and US$200 000 for services.
International tenders are invited for procurement values above US$5 million for construction works, US$300 000 for goods and US$200 000 for services.
Addressing delegates during the Zimbabwe International Trade Fair (ZITF) International Business Conference in Bulawayo yesterday, Vice-President Constantino Chiwenga said although Government decided to revise the threshold for domestic tenders, there should be no room for poor workmanship.
“We have just finished incentivising local companies and as from this week going forward, we have lifted the US$5 million threshold for domestic tenders. Zimbabwean firms will now be able to bid and do works of up to US$10 million procurement value without international companies,” he said.
VP Chiwenga said local firms must be able to compete against international bidders in public procurement.
“We have provided for domestic preference in the evaluation of bids in our public procurement law. However, the policy is not designed to shield inefficient domestic production from international competition,” he said.
“Thus, above certain procurement value financial thresholds defined in our statutes, domestic firms must be able to compete against international bidders in public procurement.”
The Vice-President challenged domestic firms to continue upgrading their business technologies to increase efficiencies.
“There is no room for protection of inefficient producers. Before the entire nation can become internationally competitive, domestic firms must be competitive at the micro level,” he said.
VP Chiwenga warned citizens against bias and preferences for foreign goods and services over the country’s own production, saying it had a negative effect on Zimbabwe’s economic growth.
“Covid-19 came and left us in no doubt that the ability to locally produce most of what we require in our economy is the best way to chart the course to our shared vision of a future without poverty in our population. At the height of the pandemic-induced lockdown, even if one wanted to import, one could not do so because most countries
around the world had totally closed their borders,” he said.
“One of the key lessons which we should therefore, never forget from our Covid-19 experience is that a nation is more secure if it is willing and able to rely more on its own than foreign production.” — The Chronicle
