Yusuf Dodia warns of Risks in Government Partnerships

Economic analyst Yusuf Dodia has advised the Zambian government to approach Public-Private Partnerships (PPPs) with caution, warning that if not carefully structured, such agreements could lead to unintended negative consequences.

Dodia acknowledged that PPPs can be an effective tool for infrastructure development and economic growth, offering alternative financing solutions for large-scale projects. However, he cautioned that not all sectors are suitable for such partnerships, urging the government to conduct thorough feasibility studies before committing to new agreements.

One of his major concerns is the potential over-reliance on the private sector, which could result in the loss of government control over critical national assets. He pointed out that sectors such as roads, airspace, and key government machinery must remain under state oversight to avoid placing national infrastructure in the hands of profit-driven private entities.

Public opinion on PPPs in Zambia has been divided. While some see them as a pragmatic solution to budget constraints, others worry about poorly negotiated contracts that favor private investors at the expense of the public. In previous cases, such partnerships have been criticized for lack of transparency, with concerns that foreign companies dominate these deals, reducing opportunities for local businesses and workers.

The Zambian government has promoted PPPs as a way to boost economic development without overburdening public finances. However, past experiences with privatization in the mining sector have left many citizens skeptical, fearing that poorly managed PPPs could lead to similar pitfalls, such as unfair revenue-sharing models and long-term economic disadvantages.

To mitigate risks, Dodia urged authorities to take a balanced approach ensuring that PPPs are structured with strong legal frameworks that protect public interests while still allowing private sector participation. He emphasized that public consultations and transparency should be at the heart of these agreements to avoid corruption and mismanagement.

With Zambia seeking new avenues for economic growth and infrastructure expansion, the debate over PPPs remains critical. As discussions continue, the government faces the challenge of striking the right balance leveraging private investment without compromising national sovereignty and long-term economic stability.