New Public Procurement Fee Structure : PRAZ

In Zimbabwe, the landscape of public procurement is undergoing a significant transformation. As of January 2026, the Procurement Regulatory Authority of Zimbabwe (PRAZ) has introduced a revised fee structure and transitioned fully to the electronic Government Procurement (eGP) System.

These changes are designed to enhance transparency and ensure that the cost of participating in government tenders is proportional to the size of the business.

1. 2026 Supplier Registration Fees

The most notable change in the new structure is the categorization of local suppliers. Fees are now tiered based on the size of the enterprise to encourage Small to Medium Enterprises (SMEs) to participate in public public tenders.

Note: Local bidders have the option to pay in local currency (ZiG) at the prevailing interbank exchange rate on the date of payment.

 

2. Administration Fees for Bid Reviews

When a tender is subject to a formal review under Section 54 of the Act, administration fees are payable by the bidders. This fee ensures that the regulatory oversight of high-value contracts is funded and managed efficiently.

• Domestic Goods & Services: $350 per bid.

• Domestic Construction Works: $400 per bid.

• International Goods & Services: $400 per bid.

• International Construction Works: $500 per bid.

3. Challenging a Contract Award

If a bidder feels the procurement process was unfair, they can lodge a challenge. The 2026 fee structure for these appeals is based on the total value of the contract being contested:

1. Awards below $10,000: A fee of $500 applies.

2. Awards between $10,000 and $50,000: A fee of $1,000 applies.

3. High-Value Awards: Challenges for contracts exceeding $50,000 typically require a higher security deposit or fee as prescribed in the latest Statutory Instruments (S.I. 9 of 2026).

4. Key Procedural Changes in 2026

The fee structure isn’t the only thing that has changed. The Public Procurement and Disposal of Public Assets Amendment Act of 2025 brought in several efficiency-focused rules:

• Shortened Standstill Period: The “waiting period” between notifying bidders of an award and signing the contract has been reduced from 14 days to 10 days.

• Mandatory eGP Registration: All registrations must now be done via the online portal. Manual submissions are largely phased out to reduce corruption risks.

• Validity of Authority: For Procuring Entities (Government Ministries/Parastatals), the authority to conduct independent procurement is now renewable annually instead of every two years, ensuring stricter compliance checks.

Why the New Structure Matters

The shift toward a more affordable entry point for Micro and Small enterprises is a strategic move to formalize the “informal sector” and ensure that government spending reaches a wider net of Zimbabwean business owners. By lowering the annual registration fee to as little as $50 for micro-businesses, PRAZ is removing the financial barrier to entry that previously locked out many innovators.