Boosting private sector investment in Zambia’s infrastructure
The role of an improved PPP Department
One of Zambia’s ambitions is to become a hub of economic development in the Southern Africa region. The government is, however, keenly aware that its infrastructure and service delivery need major improvements to make it possible for business and enterprise to thrive and boost economic growth. Like most countries around the world, the Zambian Government recognises that complete reliance on its own financial resources is inadequate to meet the country’s infrastructure needs. In light of this, the government sees the private sector as a critical partner to achieve its economic development objectives, thereby acknowledging public-private partnerships (PPPs), as a possible way to finance essential public infrastructure development. In addition to providing an alternative source of financing, PPPs also offer a means to reduce fiscal pressure on the country’s treasury and leverage private sector innovation, expertise and efficiency.
A critical success factor in the implementation of PPPs is the need to put in place an effective regulatory framework, which is fit for purpose and boosts investor confidence. An effective regulatory framework is critical to establish governance standards and ensure transparency in the PPP project procurement and implementation process. This, in turn, helps to ensure that PPP projects are delivered in an efficient, consistent and sustainable manner. This note outlines the road to a regulatory PPP framework through the eyes of the Oxford Policy Fellow