Supplier development in public and private procurement systems: pathways to local market strengthening and inclusive value chains in Zambia

Abstract

This research thoroughly investigates the strategic significance of Supplier Development (SD) within the public and private procurement frameworks in Zambia, aiming to enhance local market resilience and promote inclusive value chains. The Government of the Republic of Zambia (GRZ) implements Institutionalised supplier development initiatives (ISDIs), which include preferential schemes and training programs, to incorporate local Small and Medium-sized Enterprises (SMEs) into public contracts. Conversely, the private sector, especially large-scale industries, utilizes business linkage initiatives to bolster local capacity. This dual strategy underscores the potential of procurement as a catalyst for socio-economic transformation. Nevertheless, the effective realization of policy into practice is considerably obstructed by institutional challenges. In the public sector, the implementation of SD is frequently undermined by political interference and corruption. along with contract management issues that reduce the positive effects on performance. In the private sector, local SMEs face significant obstacles, including inadequate technological and supply capabilities, which are further aggravated by a deficient enabling environment. This study adopts a qualitative, multi-stakeholder methodology to analyze these systemic barriers and suggests a comprehensive framework for SD that capitalizes on the synergistic strengths of both public policy and private commercial incentives. The outcomes are intended to guide procurement policy reforms that promote equitable, effective, and sustainable integration of local enterprises, thereby establishing a foundation of inclusive growth for the Zambian economy.

Key terms: Supplier development (SD); public and private procurement systems; local market strengthening; inclusive value chains; institutionalised supplier development initiatives (ISDIs))

DOI: 10.7176/EJBM/18-2-05

Publication date: February 28^th 2026