Saturday, January 11, 2025

Only foreign investors show interest in Public Private Partnership projects.

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GOVERNMENT is concerned that only foreign investors, especially South African companies, are keen in applying for Public Private Partnership (PPP) projects.

Director of the PPP Unit at the Ministry of Finance and National Planning David Ndopu said Government is concerned that not many Zambians are coming forward to partner with it in PPP projects.

He said this on Friday night during an Engineering Institution of Zambia (EIZ)-Southern Region business discussion at Pamodzi Hotel in Lusaka.

Mr Ndopu said engineers can play a pivotal role in creating opportunities for Zambians to participate in PPP projects.

“There is limited local capacity to undertake and finance PPP projects. Post HIPC conditionalities could also have been contributing factors,” Mr Ndopu said.

Mr Ndopu who was presenting a paper on ‘PPP policy, strategy, implementation and opportunities’ urged the engineers in Zambia to take up the challenge and partner with Government on various PPP projects.

He said government has been doing its best to advertise the projects so that Zambians could actively participate in the projects.

Mr Ndopu said the projects that government is undertaking through PPPs are more of public interest than for generating excessive profits.

“Government would have to ensure that the returns are not excessive. Projects must be in line with government intentions,” he said.

He said another challenge for the government and local investors is a lot of protectionism in view of the requirement that government must provide a guarantee so that the country does not slide back into debt.

Mr Ndopu also said that many Zambians are highly expectant of the PPPs because they think that these will sort out all problems in Zambia.

“People think that PPP has come to sort out all the problems that the country has. But PPP is not a panacea for our problems,” Mr Ndopu said.

He said government has advertised various projects under the PPP. These include the Lusaka International Airport development, Nansanga Farm hydro-power generation and irrigation project in Serenje, and the refurbishment of the Kazungula and Kasumbalesa border posts.

EIZ President Mr Henry Musonda said while it is the responsibility of the private sector to provide government with high quality partnership, it remains government’s responsibility to provide infrastructure.

He said government’s decision to waive tax for some sectors has also been a challenge to investors working on certain projects.

Mr Musonda suggested that donors should help local investors who may have interest in PPP projects but lack capacity to do.

He said government must consider working closely with EIZ because engineers can play a significant role in helping Zambia achieve its Vision 2030 plans.

An investment banking consultant, Mr Siyanga Malumo, said in his presentation on “ Resource Mobilisation for PPP projects and investment financing’ that PPP investors should not work in isolation if they want to successfully implement their projects.

He said investors should engage others experts to do certain jobs, such as project proposals.

Speaking at the same function, National Council for Construction chairman Francis Ndilila said lack of capacity for Zambians to actively participate in the PPP programmes is a creation of Zambians and not foreigners.

Dr Ndilila, who is also a consultant, said Zambians can succeed if they partner with foreign investors who have the technical and financial muscle.

[Zambia Daily Mail]

4 COMMENTS

  1. My friend, you need money to venture into such. Your government is broke, the reason you are looking at PPP. Can you tell us what engine you’ve put in for the Zambians to access money enough to invest in PPP’s

  2. The government can’t borrow enough money to stimulate the economy when it has no industry to stimulate.

    Total disregard for industry over the past 18 years has left a single cycle economy…Copper.

  3. This is where the CEECand ZDA comes in and makes sure all FDI’s applying for PPP have a Zambian partner. We need to locally empower our own citizens. There must be no excuse at all.

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