The real realistic strategy of building strong infrastructure networks in Zambia lies with the Private Public Partnerships (PPP). The good news is that there is an increase in opportunities for the participation of the private sector in the development of infrastructure in the country.

As at now, the construction of a border post at Kasumbalesa under the PPP is being piloted. The Minister of Finance and National Planning Dr. Situmbeko Musokotwane is hopeful this project will be the blue print for the engagement of the private sector in the construction of other facilitates such as airports, bridges and even roads.

The Minister has gone further to appeal to investors during a Trade Finance Conference held in Lusaka this week to put up infrastructure at border entry points. The incentives in existence for this level of engagement are that Zambia has no foreign exchange restrictions. However, for the private sector to fully participate, the country will also need to redefine the infrastructure development policy. Critical to this policy is coming up with possible sweeteners that will support the mobilization of capital by the private sector.

Long term financing is very expensive given the high level of uncertainty and not many investors, both local and foreign, would be prepared to take the risk. Just recently, the Securities and Exchange Commission Secretary and CEO, Clement Sichembe, suggested removing withholding tax on interest earned from long-dated private bonds.

The point is that the possible issuers of various bonds relevant for the development of infrastructure will find it difficult to attract sufficient resources from the market that is presently focused on short term returns. There is need to have deliberate incentives aimed at attracting investors in long term finance for the PPP to succeed. While government will lose revenue, the actual benefits in terms of economic growth should be significant. We urgently need to open a new window of private sector participation in the development of the country’s infrastructure. The opportunities for such engagement are increasing but we need to do a little more.