Malawi's new procurement procedures to support SMEs

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.