PRAZ registration: Gateway to tenders

SINCE the Government is the biggest customer in any economy, transacting with the public without some form of standardisation of procedure and conduct will be disastrous. The relationship between the buyer and the supplier in this case need to be in black and white for the benefit of all the parties concerned. In light of this, the Procurement Regulatory Authority (PRAZ) was constituted. This body was popularly known as the State Procurement Board (SPB) before the new act came into place.

PRAZ was birthed out of the Public Procurement and Disposal of Assets Act [Chapter 22:23] on part two (2) section five (5) and it got its functions in the same part but on section number six (6). So, the PPDPA Act was enacted mainly to provide for the control and regulation of public procurement and the disposal of public assets so as to ensure that such procurement and disposal is effected in a manner that is transparent, fair, honest, cost-effective and competitive and as mentioned earlier on to establish the Procurement Regulatory Authority of Zimbabwe (PRAZ) and to provide for its functions

Entrepreneurs maximises on opportunities that avails themselves in the market.

Everyone who gets into business wants to grow their customer base as they seek relevance and growth. Among the various customers one can think about, the government stands taller as having numerous business opportunities that serious and organised entrepreneurs can benefit from.

This article will focus on the PRAZ Registration process including the requirements and the benefits that comes with registration.

The PRAZ Registration Process (PRP) At the beginning of every year, the Procurement Regulatory Authority of Zimbabwe produces and distributes through various media platforms a CALL FOR SUPPLIER REGISTRATION AND OR RENEWALS in terms of Section 6 of the Public Procurement and Disposal of Public Assets Act (PPDPA) as read with of the same act.

This call is targeted at new suppliers of goods, works and services to the public sector as well as current suppliers published in the Government Gazettes of the previous year who wish to renew their registrations in the current year.

This is an unrestricted call to which every upfront entrepreneur and business person in general is free to participate as long as they have all the required documentation.

There are a number of categories within which one can register. So, if you deal in many lines or activities, it means you will have more than one PRAZ Certificate.

Cost of PRAZ Registration

PRAZ registration is done online at a non-refundable annual registration fee of $16000.00 or US$120.00 for local companies and US$850 for foreign companies per category. You may choose to register on a quarterly basis and an option has been provided for that.

For that option, there is a non-refundable fee of $4000 or US$30 for both new and renewals for local companies.

Required Documentation

As shared in my last week article that if you’re operating a company that do not have a Certificate of Incorporation, which is the conclusive evidence that a company has been dully incorporated within the Zimbabwean laws you stand to lose a lot.

The reason why I am reiterating the point is that, all the documents that you get from the registrar of companies are an input into the PRAZ registration process. The following documents are needed for the PRAZ registration process.

1. Certificate of Incorporation

2. CR6 formerly CR14

3. CR5

4. Memorandum of Association

5. Articles of Association

6. Company Profile

7. Copies of directors IDs

If you have these documents, then you are eligible to register with the Procurement Regulatory Authority of Zimbabwe (PRAZ). All these documents are submitted online together with the proof of payment. Once the documents are verified, you will receive your PRAZ Certificate online which you are expected to attach to your company documents as you respond to tenders which are publicly advertised.

Unlike other companies which can accept your documents without a valid tax clearance certificate, for tenders you are expected to have it. If you don’t have a tax clearance certificate you risk losing 30 percent through withholding tax.

You also need to have your NSSA Certificate as you submit your tender documents. All these seek to check your level of compliance with the laws governing operating entities in the country.

Benefits of PRAZ Registration

The major objective of most businesses is to make a profit by reaching as many customers as possible among other strategies. As mentioned earlier on that the government in any economy is the largest buyer or consumer of products and services and as such relating to such an institution offers robust business opportunities. The benefits of PRAZ registration are;

1. Participation in government tenders

2. Opportunity to grow your customer base

3. You are automatically included in the government data base of suppliers of such products and services as you would have chosen.

4. You’re better off than your unregistered counter parts.

5. Exposure to competition from other bidders which will enhance the quality of your products and services.

6. Having your PRAZ registration boost customer confidence as they also know that you are not just a fly by night supplier.

Having your PRAZ registration in place positions your organisation for unlimited business opportunities with the government which includes, local authorities, schools and other parastatals

Entrepreneurs seizes opportunities as they come. PRAZ registration opens doors to vast business opportunities with the government you cannot afford to miss. Always be compliant and enjoy a good market share.

◆ The writer, Dr. Kudzanai Vere is an entrepreneur, author of four books, business and personal development, multiple award winning entrepreneurship and business coach. Dr. Vere has coached more than 5000 entrepreneurs globally and continues to impact people in the areas of entrepreneurship, business and personal development. He is the CEO of Kudfort Group.

Contact Dr Kudzanai Vere for transformational entrepreneurship and business coaching and training on kudzanai@kudfort.co.zw or +263 719 592232