PPPs Key to Unlocking Zambia’s Development Financing – Simutowe

Chali Mulenga

The Ministry of Finance and National Planning has reaffirmed that Public-Private Partnerships (PPPs) remain central to Zambia’s strategy for financing infrastructure and driving economic growth amid fiscal constraints.

Presenting at the Zambia Institute of Strategic Management (ZiSM) Conference on March 25, 2026, Principal Business Development and Promotions Officer in the PPP Office, Solomon Simutowe, said Zambia has strengthened its legal and institutional framework to enhance private sector participation in national development.

Mr Simutowe said the enactment of the Public-Private Partnership Act No. 18 of 2023, which became effective on February 2, 2024, marked a major reform milestone following the repeal of the 2009 law due to weaknesses in coordination, project execution and oversight.

“The new Act is designed to strengthen governance, improve efficiency in project delivery and attract more private sector participation,” he said.

He noted that the law is supported by Statutory Instruments No. 16 of 2024, No. 74 of 2024 and No. 54 of 2025, which operationalise the Act and establish a PPP Fund Administration framework to support early-stage project preparation.

Mr Simutowe said PPPs are guided by key principles such as affordability, value for money, optimal risk transfer and public benefit, emphasising that projects must deliver quality services to citizens at minimal cost.

He explained that under the framework, PPP projects can be initiated through solicited proposals by government institutions or unsolicited proposals from private sector players, with preliminary evaluations for the latter required within 14 days.

“PPPs are not optional but essential in bridging Zambia’s infrastructure financing gap, especially in the face of rising debt and limited public resources,” he said.

Mr Simutowe identified priority sectors for PPP investment as transport, energy, water and sanitation, healthcare, education, urban development, trade infrastructure and digital systems.

He said financing structures for PPPs include a mix of equity and debt, mezzanine financing and project finance through Special Purpose Vehicles (SPVs), alongside innovative mechanisms such as blended finance, guarantees and viability gap funding.

He added that emerging instruments such as green bonds, climate funds and infrastructure funds are increasingly being promoted to support sustainable and climate-resilient projects.

Mr Simutowe said risk management remains a central component of PPPs, with emphasis on transferring financial, technical and operational risks to parties best equipped to manage them in order to improve efficiency and avoid cost overruns.

“Value for money is not about the lowest cost, but about achieving long-term efficiency and sustainability through competitive bidding and proper risk allocation,” he said.

Despite the progress, Mr Simutowe cited several challenges affecting PPP implementation, including weak project preparation capacity, difficulties in securing financing, limited participation by local investors, high costs of feasibility studies and lengthy approval processes.

He warned that low involvement of indigenous Zambian investors risks foreign dominance in PPP projects if not addressed through deliberate policy measures.

To address these challenges, Government is implementing reforms such as strengthening the PPP Office, introducing standardised contracts, accelerating approval systems and promoting innovative financing models.

Mr Simutowe also underscored the importance of capacity building to address technical gaps in PPP structuring and project development.

He said Zambia’s development challenges are largely driven by limited financing rather than lack of ideas, positioning PPPs as a critical bridge between ambition and funding.

“Collaboration between Government, the private sector and development partners is key to unlocking both capital and innovation for sustainable economic development,” he said.

Mr Simutowe added that PPPs contribute to job creation, improved infrastructure access and enhanced service delivery, ultimately supporting long-term economic growth.