Stopping exploitation in supplier listing process

Opinion
Why should businesses be forced to pay to access information that is essential for them to compete for contracts?

AS any calendar year draws to a close, a familiar pattern emerges across various sectors in Zimbabwe.

Companies, schools, non-governmental organisations, and government institutions invite service providers to submit their documentation for inclusion on their supplier lists.

This process, which typically requires a fee ranging from US$20 to US$200, raises serious concerns about transparency and fairness.

It is imperative that the Zimbabwean government takes action to stop this exploitation and establish a more equitable system for 2025 and beyond.

The practice of charging fees for supplier registration is not unique to Zimbabwe. However, the prevalence of such fees, particularly in a country grappling with economic challenges, is alarming.

Organisations justify these fees as administrative costs, suggesting that they are necessary for processing applications and maintaining supplier databases.

Yet, this rationale often masks a more insidious reality, a system that disproportionately burdens smaller businesses and service providers.

In many instances, the fees serve as a barrier to entry, effectively excluding competent suppliers, who may lack the financial resources to pay upfront.

This not only stifles competition but also undermines the quality of goods and services that organisations can access. In an economy where innovation and diverse offerings are crucial, this practice can hinder growth and development.

The situation is compounded in the realm of government tenders, where prospective bidders are required to pay for tender documents.

This practice raises similar questions about fairness and accessibility.

Why should businesses be forced to pay to access information that is essential for them to compete for contracts?

This model creates an environment where only those with sufficient financial backing can participate, further entrenching inequalities.

The rationale provided for charging for tender documents often revolves around the costs associated with preparing and distributing these documents.

However, in a world increasingly driven by digital solutions, these costs should be minimal.

The government should leverage technology to provide open access to tender information, fostering a more inclusive environment for all potential bidders.

It is time the Zimbabwean government takes a stand against these exploitative practices.

A transparent and open process is essential for fostering a fair business environment.

Here are several key reasons why reform is necessary:

  • Promoting fair competition: By eliminating fees for supplier registration and tender documents, the government can level the playing field for all businesses. This will encourage competition, leading to better quality products and services at lower prices.
  • Supporting small businesses: Small and medium-sized enterprises (SMEs) are vital for economic growth and job creation. Removing financial barriers will empower these businesses to participate in government contracts, ultimately benefiting the economy.
  • Enhancing transparency: An open and transparent process will reduce opportunities for corruption and favouritism. When all companies have equal access to information, it fosters trust in the procurement process.
  • Improving service delivery: When organisations can choose from a broader pool of suppliers, they are more likely to find those that meet their specific needs. This can lead to improved service delivery across sectors, from education to healthcare.

As Zimbabwe looks toward 2025, it is crucial to envision a procurement landscape that prioritises transparency, inclusivity, and fairness.

The government should consider implementing the following measures:

  • Waiving registration fees: Organisations should be prohibited from charging fees for supplier registration. Instead, funding for administrative costs could come from government budgets or be absorbed by larger organisations that benefit from a diverse supplier base.
  • Digital access to tender information: The government should create a centralised online platform where all tender documents and supplier registration forms are readily accessible to the public, free of charge.
  • Regular audits and oversight: Establishing an independent body to oversee procurement practices can help ensure compliance with transparency standards and hold organisations accountable for exploitative practices.

The current practices surrounding supplier registration and tender processes in Zimbabwe are not only exploitative but also detrimental to the country's economic development.

By taking decisive action to eliminate these fees and promote transparency, the government can create a more equitable environment for all businesses. This change is not just a moral imperative, it is essential for fostering growth, innovation and sustainable development in Zimbabwe's future.

Opportunities for All!

 

Mutisi is the CEO of Hansole Investments (Pvt) Ltd. He is the current chairperson of Zimbabwe Information & Communication Technology, a division of Zimbabwe Institution of Engineers. — [email protected] or 263 772 278 161.

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