Local companies stand to generate $900 million through a window created by the new Public Procurement Act and Disposal of Assets Act which provides for 75 percent to be procured locally.
The new Public Procurement Act and Disposal of Assets Act is biased towards promotion of local companies as it has empowered procuring entities to give preference to competitive bids from Zimbabwean suppliers and manufacturers.
Speaking at the third annual national procurement conference Minister of Finance and Economic Development Cde Patrick Chinamasa told delegates at the 33rd indaba that companies stand to generate $900 million as the 2018 national budget has $1.2 billion set aside for capital expenditure.
Buy Zimbabwe general manager Mr Munyaradzi Hwengwere said local companies need to be equipped to exploit the opportunity created by the new law.
Government procurement typically accounts for about 15 to 20 percent of the country’s gross domestic product.
Municipalities and local authorities also spend millions of dollars on capital expenditure and procurement supplies annually.