Landmark PPP framework to be tabled before Cabinet

CLOUDINE MATOLA

The Zimbabwe Investment and Development Agency (ZIDA) has finalized the much-anticipated Public-Private Partnership (PPP) framework, signaling a pivotal step in unlocking infrastructure investment opportunities in Zimbabwe.

With approval already secured from the PPP Committee during the fourth quarter (Q4) of 2024, the framework is set to be presented to the Cabinet in the first quarter (Q1) of 2025.

This milestone marks a critical moment in Zimbabwe’s efforts to attract private sector investment and expertise to drive national infrastructure development. As the country grapples with the need to modernize and expand its infrastructure, the PPP framework is positioned as a game-changer, designed to provide clarity and streamline processes for both government and private sector partners.

ZIDA CEO, Tafadzwa Chinamo underscored the significance of the PPP guidelines as a cornerstone for Zimbabwe’s infrastructure agenda.

“A noteworthy development in the fourth quarter was the finalization of the PPP Guidelines and subsequent approval by the PPP Committee,” Chinamo said.

He continued:“We plan to present these before the Cabinet in the first quarter of 2025 for approval so they can become the governing law for all PPPs in Zimbabwe. PPPs play a vital role in developing our nation’s infrastructure, and we believe the guidelines will provide clarity to both contracting authorities and their counterparties in the consummation of impactful projects.”

The finalized framework aims to address key challenges that have hindered the implementation of PPPs in the past, offering a structured approach to foster confidence among investors and ensure successful project execution.

ZIDA’s Q4 2024 report also revealed significant activity in the PPP space, with nine projects reviewed during the quarter, bringing the total number of PPP projects considered for the year to 46.

However, the period also highlighted mixed signals from the investment landscape. While there was a 19.04% increase in investment licenses issued, rising to 200 from 149 in the same quarter of 2023, the total value of committed investments saw a steep decline. Investors committed US$4.59 million in Q4 2024, a 60.12% drop compared to the US$11.50 million recorded in Q4 2023.

Chinamo attributed the decline to the absence of high-value projects that characterized 2023 but remained optimistic about the growing number of investment licenses issued. “Interest from investors to invest in the country remains strong, with 200 investment licenses issued in the fourth quarter, higher than the 149 issued in the same period in 2023,” he noted.

The mining sector led in the number of licenses issued, with projects collectively valued at US$59.42 million. However, it was the real estate and energy sectors that stole the spotlight in terms of projected investment value.

The real estate sector accounted for the lion’s share, with a projected investment value of US$2 billion, representing 43.60% of the total projected investment value for the quarter. The energy sector followed, with projected investments amounting to US$1.043 billion, making up 22.76% of the overall projections.

These figures underscore the continued interest in Zimbabwe’s resource-based economy and the growing recognition of opportunities in its energy and property markets.

As ZIDA prepares to present the PPP framework to the Cabinet, the agency is positioning itself as a critical player in fostering investor confidence and driving economic growth. The finalization of the framework reflects a concerted effort to provide a clear, transparent, and investor-friendly environment, particularly as Zimbabwe seeks to address its infrastructure deficit.

The PPP model has long been recognized as a powerful tool for mobilizing private sector resources and expertise, particularly in emerging markets. By establishing clear guidelines and governance mechanisms, ZIDA aims to mitigate risks and create a conducive environment for the successful execution of PPP projects.

With the presentation of the PPP framework to the Cabinet slated for Q1 2025, Zimbabwe stands at a crossroads. The framework’s approval could usher in a new era of public-private collaboration, unlocking opportunities across sectors and transforming the nation’s infrastructure landscape.

However, challenges remain. The sharp decline in committed investment values serves as a reminder of the need for robust engagement with the private sector and a consistent focus on building a competitive investment climate.

As ZIDA charts the way forward, the agency’s proactive approach and commitment to fostering partnerships will be critical in shaping Zimbabwe’s economic trajectory.

The PPP framework is not just a set of guidelines—it is a blueprint for collaboration, innovation, and progress.

The finalization and impending presentation of the PPP framework by ZIDA marks a decisive step in addressing Zimbabwe’s infrastructure needs.

With clear guidelines, enhanced transparency, and a commitment to fostering collaboration, the framework holds the promise of driving transformative growth in the years to come.

As the country looks to the future, the success of the PPP framework will depend on the collective will of stakeholders—government, private sector, and citizens—to seize the opportunities it presents and work together toward a shared vision of development.