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Malawi's new procurement procedures to support SMEs

Government, through its office of the director of public procurement (ODPP) has set up new procurement procedures, which will support small-to-medium enterprise (SMEs), other local manufacturers and producers.
Director of Public Procurement Bright Mangulama said the news procedures follows a presidential directive made at the opening ceremony of the 2009 Agriculture Fair in Blantyre stating that public institutions should as far as possible “Buy Malawian”.

Among other things, Mangulama also said all procuring entities have been instructed to apply the current domestic preference margin of 10% on all procurements where local products are in competition with imported products.

In keeping with the “Buy Malawian” initiative , Mangulama said the ODPP believes that the promotion of SMEs shall be the main avenue for promoting locally produced products and services because it is the SMEs that produce and sell a lot of such goods on the local scene.

The office has also ordered that all procuring entities will be prioritising settlement of any dues to the SMEs that have successfully completed their contracts.

“Economic empowerment of SMEs through prompt and priority payments shall enable them venture into production to satisfy the volume requirements of the procuring entities, which will in turn help in limiting their desire to import,” he said.
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About Gregory Gondwe

Gregory Gondwe is a Malawian journalist who started writing in 1993. He is also a media consultant assisting several international journalists pursuing assignments in Malawi. He holds a Diploma and an Intermediate Certificate in Journalism among other media-related certificates. He can be contacted on . Follow him on Twitter at @Kalipochi.