Government will float an infrastructure bond and turn to private public partnership (PPPs) to raise funding amid revelation that at least US$14bn is required to rehabilitate Zimbabwe’s infrastructure.
Infrastructure is a key enabler in the facilitation of sustainable and inclusive social and economic development.
Zimbabwe has been struggling to fund infrastructure projects as the bulk of the budget is consumed by recurrent expenditure in the form of salaries to the civil service.
Fortune Chasi, Transport and Infrastructure Development deputy minister, recently told Business Times that economic growth and development are difficult to achieve without the availability and provision of social services and appropriate road and rail infrastructure.
“The country’s infrastructure is estimated to require US$14b and the government intends to float infrastructure bonds to supplement the fiscal capital formation budget,” Chasi said.
“It is fortunate that Zimbabwe accommodates the private sector to participate and invest in infrastructure through Public-Private Partnerships.”
He said PPPs are vital to the Ministry as they bring “efficiency of business” to public service delivery and avoids full privatisation.
“They allow the government to retain ownership while the private sector performs a specific function such as maintaining and operating infrastructure such as roads or providing basic services such as water and electricity,” Chasi said.
In 2004, Zimbabwean government issued a revised policy statement for the use of PPPs in various sectors to promote economic growth and development through collaboration between private sector and government.
Chasi said the ministry is now focusing on transport and infrastructural development.
This comes after realisation that most of the developments are not observing national and SADC standards.
The ministry is also working in line with the Sustainable Development Goals which encourages countries to invest in infrastructure and innovation as drivers of economic growth and development.
The Transitional Stabilisation Programme recognises that functional public infrastructure is a key enabler to unlocking economic growth potential, increase competitiveness and productivity whilst equipping public services to meet the demand.