Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has raised alarm over what he calls “procurement chaos” in government ministries, warning that it is draining the Treasury and putting the country’s fragile fiscal stability at risk.
Speaking recently, Prof. Ncube said the biggest problem facing the government’s finances is “over-contracting” — where ministries sign large contracts without informing or seeking approval from the Treasury.
“Ministries sign contracts on their own, and we only find out later as the Treasury,” he stated. “No government ministry should sign a major contract without Treasury’s consent.”
The minister explained that the situation is similar to how ministries cannot hire staff such as nurses or teachers without approval. The same rule, he said, should apply to contracts.
Under Zimbabwe’s public finance system, government procurement is meant to ensure that spending stays within the national budget and matches available resources. However, many ministries have been bypassing this process, committing to projects such as infrastructure works, goods supply, and service delivery without Treasury oversight.
The result is a growing number of unpaid bills to contractors and suppliers, delays in project completion, and reduced trust between the government and private sector partners. “Over-contracting is causing delays or non-payment to hardworking contractors,” Ncube said, noting that the problem also threatens public services and development plans.
Economists warn that these practices are dangerous for Zimbabwe’s already fragile economy, which has been struggling with inflation, limited fiscal space, and high debt. Extra spending from unapproved contracts often leads to more borrowing, higher public debt, and less funding for essential services like education, health, and welfare.
Eddie Cross, an economist and former member of the Monetary Policy Committee, said the Ministry of Finance is moving to stop the problem by issuing a clear Treasury instruction to all ministries, banning the signing of contracts without written approval. But he cautioned that past commitments will still need to be cleared, which could take time and strain resources.
Another economist, Professor Gift Mugano, described the minister’s admission as “a wake-up call.” He said ministries acting outside the Treasury’s control violates the Public Finance Management Act, creates room for corruption, and locks the government into obligations it cannot immediately fund.
He urged the government to consider penalties under the Act and invest in digitised, e-procurement platforms to improve efficiency, transparency, and data accuracy.
In response, Ncube announced that the Treasury will enforce stricter rules, monitor procurement activities more closely, set clear approval limits, and integrate procurement data into its systems for real-time oversight. Ministries will also be trained to manage procurement in line with regulations.
“This is not about bureaucracy but about safeguarding public resources,” the minister said. “By tightening controls, we will show contractors, partners, and the public that the government is serious about fiscal discipline.”
Experts agree that if reforms are properly implemented, they could restore order to public procurement, speed up project delivery, and help rebuild trust in Zimbabwe’s financial management. But they also warn that until existing debts are cleared, the Treasury will remain under pressure.
The government now faces a test of willpower: whether it can close loopholes, punish breaches, and ensure that every contract signed serves the people’s needs without pushing the nation deeper into financial crisis.
