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Government Advances With Central Public Procurement Unit to Strengthen Spending Control

Government Advances With Central Public Procurement Unit to Strengthen Spending Control

The Government has approved the creation of the State Procurement Centre (CAE), a structure that will centralize public procurement processes with the aim of making government purchasing more efficient, predictable, and transparent, the Mozambique News Agency reported on Tuesday, May 19.

The new entity arises within the scope of reforms aimed at modernizing the Public Administration and reducing weaknesses associated with decentralized procurement management, which is often identified as one of the sources of resource waste and corruption practices.

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On the sidelines of the Council of Ministers meeting, government spokesperson Inocêncio Impissa explained that “the model will allow the State to monitor more rigorously the prices practiced in the market, facilitating the definition of benchmarks for future contracts and improving the ability to negotiate with suppliers.”

With centralization, the Government also intends to avoid duplication of purchases among institutions, reduce operational costs, and strengthen coordination between the different sectors of the State apparatus.

The CAE will operate with an integrated digital procurement management system, including mechanisms for inventory control, contracts, and accounting processes, enabling greater traceability of public expenditure.

“The model will allow the State to more closely monitor market prices, facilitating the establishment of benchmarks for future contracts and improving its ability to negotiate with suppliers”

According to the Government, the measure may also contribute to economies of scale, particularly in the procurement of commonly used goods and services, as well as strengthen mechanisms for oversight and auditing of public accounts.

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The creation of this institution is part of the commitment made by the President of the Republic, Daniel Chapo, to strengthen transparency in state management and improve the efficiency of public procurement.

In parallel, the Council of Ministers approved amendments to the regulation on public works contracting, goods supply, and provision of services to the State, aiming to adapt the current legal framework to the new centralized procurement model.

The Government believes that these changes will allow for better rationalization of public expenditure and improved planning of procurement processes, in a context of pressure on public finances and the need for greater control over public resources.

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