Public Procurement and Disposal of Public Assets (Participation by micro, small and medium enterprises) Order 2020.

This Order applies to participation of- (a) small and medium enterprises in public procurement of goods, works and services; and (b) enterprises other than those specified in subparagraph (a) where identification of a successful bidder which is micro, small or medium enterprise has failed. Enterprises to be eligible for preference and reservation under the order shall be registered as a business entity in Malawi and registered as a micro, small or medium enterprise under this Order. The Order clarifies the form and process for application for a micro, small or medium enterprise status and the discipline of certification. for The Order provides the list of sectors whose procurement if restricted to micro, small and medium enterprises. For goods the order lists: Horticultural products, fish and fish products, milk and milk products, poultry products, veterinary supplies, live stocks, farm implements, etc.
For the purpose of promoting the participation of micro, small of preferences and medium enterprises in the procurement of goods, works and services, a procuring and disposing entity shall (a) submit to the Authority, an annual procurement plan indicating inter alia, the value and percentage of procurement reserved or intended for award to micro, small and medium enterprises; (b) indicate in a bidding document, the margin of preference applicable to micro, small and medium enterprises; (c) where applicable, state clearly in the invitation to bid, the existence of the preferences and reservations for micro, small and medium enterprises in the manner prescribed by the Director General from time to time; (d) comply with preferences and reservations which the Minister may set; and (e) submit to the Authority, quarterly reports on compliance with the preferences and reservations stipulated in the annual procurement plan.
A procuring and disposing entity shall prioritize locally produced goods and services by granting a margin of preference of twenty percent in a procurement where applicable; procuring and disposing entity shall reserve contracts for procurement of goods, works and services listed in the Second Schedule hereto, for bidders which are micro, small and medium enterprises or marginalized group. Offences and enforcement are also regulated. Moreover Second Schedule provides list of sectors (divided by goods, works, consulting and non-consulting services) whose procurement is restricted to micro, small or medium enterprise, the sectors are: horticultural products; fish and fish products; milk and milk products; poultry products; foodstuffs; agricultural equipment; fertilizer; agricultural chemicals; veterinary supplies seeds/seedlings; livestock; farm implement; fish ponds among others.