Use public procurement for development – Hungwe

29 Oct, 2024 - 13:10 0 Views
Use public procurement for development – Hungwe

NewZiana

Public procurement should serve as a catalyst for inclusive growth, ensuring that opportunities are accessible to all regardless of size or sector, an official has said.

Chairman of the Public Service Commission (PSC), Vincent Hungwe, said this on Monday while officiating at a two-day Public Procurement and Corporate Governance Conference in the second-largest city.

The conference, running under the theme, “Collaborative Governance: Building Partnerships for Effective Public Procurement and Corporate Governance,” brought together stakeholders to discuss the critical role of governance in public procurement.

“Effective governance flourishes when principles, systems, structures and agency are harmonised and work in unison.

“Public procurement and corporate governance represent two pivotal pillars that shape the performance of public entities. When synchronised, they can be transformative forces in national development,” he said.

In fostering a robust procurement ecosystem, Hungwe emphasised the importance of equality and equity.

“Equity demands that we not only level the playing field but also provide support to disadvantaged groups, enabling them to compete fairly in the marketplace.

“Furthermore, beneficiaries of public procurement must actively engage in absorbing the wealth of talent being developed in our tertiary institutions,” he added.

By aligning procurement practices with the socio-economic imperative of nurturing local skills, Hungwe noted that a symbiotic relationship is created, balancing functional efficiency with broader development goals.

This approach ensures that the procurement process not only drives immediate outcomes but also contributes to long-term, sustainable growth by supporting the next generation of professionals and entrepreneurs, he added.

“Good corporate governance provides the principles upon which procurement systems must be built, such as accountability, transparency, integrity and efficiency.

“A sound procurement ecosystem relies on principles, systems, structures and agency.

“This framework provides the foundation for understanding the broader discussions around the governance of public entities,” Hungwe explained.

He also highlighted that public procurement is not merely a transactional process but a strategic enabler of economic growth.

“Public procurement accounts for 20 to 25 percent of the country’s annual budget. Zimbabwe’s 2024 budget is approximately US$7 billion.

“As government spending continues to be a significant portion of national economic activity, it is incumbent upon public entities to harness procurement as a driver of development,” he said.

He stressed that strategic procurement that supports local industries, encourages innovation and fosters competition can stimulate growth, create jobs and ultimately contribute to achieving national development aspirations, as articulated in Vision 2030.

Hungwe pointed out that the integration of technology is a key aspect of transforming procurement.

“We live in an era where technology is reshaping how we work, and public procurement is no exception.

 

“Digital platforms can streamline procurement processes, reduce human error, and enhance transparency by providing real-time access to procurement data,” he noted.

However, Hungwe acknowledged that the journey toward digital transformation in public procurement has its own challenges.

“There are concerns around cybersecurity, data protection and the digital divide that we must address to ensure that technology integration achieves its intended outcomes,” he said.

He commended the launch of the Electronic Governance Procurement (e-GP) system by the Procurement Regulatory Authority of Zimbabwe (PRAZ) as a significant step toward addressing longstanding challenges in the sector.

“The global adoption of the system, along with comprehensive capacity building, is essential to ensuring its success.

“This capacity building should be inclusive, considering the government’s commitment to decentralising and devolving services,” Hungwe said.

He also highlighted the importance of the convergence of modernisation, devolution and decentralisation as key pillars of government strategy.

“Effective devolution and decentralisation of government services necessitate that all structures, systems and processes are configured to support the empowerment of sub-national bodies, enabling them to manage procurement independently from central government.”

“In this regard, the Corporate Governance Unit (CGU) should take steps to equip sub-national entities with the skills and capacity needed to develop sound procurement plans, while Treasury ensures these entities have the necessary funding to procure goods and services locally,” he added.

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