Public-Private Partnerships (PPPs): A Catalyst for Zambia’s Development and Economic Growth

By Natasha Lloyd, EY Zambia, International Tax and Transaction Services (ITTS) and Nsatusile B. Mgode , EY Zambia, Tax and Legal Manager.

Public-Private Partnerships (PPPs) are rapidly becoming a cornerstone of Zambia’s development strategy, particularly in response to limited public finances. The Government’s 2025-2027 Medium-Term Budget Plan (Green Paper) proudly highlights the signing of seven PPP projects between 2021 and 2024, with a total investment value of USD 1.5 billion. These partnerships are proving to be a significant catalyst for economic growth, driving transformative projects in critical sectors.

The Impact of PPPs on Zambia’s Economic Growth

PPPs have far-reaching implications for Zambia’s economic development. Notable successes include the Lusaka-Ndola Dual Carriageway, an infrastructure project that will significantly improve transport connectivity and trade routes across the country. In the energy sector, the Bangweulu Solar Power Project has demonstrated how PPPs can drive renewable energy growth, creating sustainable power solutions while reducing Zambia’s reliance on hydroelectric power.

Beyond infrastructure and energy, PPPs have played a key role in mining, agriculture, healthcare, education, and information technology, where private sector expertise and investment have driven innovation and development.

Successful Examples of PPPs Globally:

Lusaka-Ndola Dual Carriageway: A major infrastructure project aimed at enhancing transport efficiency along Zambia’s busiest trade route. This PPP project exemplifies how public and private collaboration can unlock capital for large-scale national infrastructure initiatives.

Bangweulu Solar Power Project: This renewable energy initiative was a landmark success, bringing sustainable solar power to Zambia. Such projects highlight the crucial role PPPs play in diversifying Zambia’s energy mix and reducing carbon footprints.

Find out more about the project here: [BOARD OF DIRECTORS MEETING] (dfc.gov)

On a global scale, the Gautrain Rapid Rail Link in South Africa is a PPP success story that has revolutionized public transport in the region, easing traffic congestion and improving the economic connectivity of Johannesburg and Pretoria. Similarly, in India, the Delhi Metro Rail Project became an iconic PPP that enhanced urban mobility and economic growth across the capital.

Strengthening Zambia’s PPP Framework

Recognizing the transformative potential of PPPs, the Zambian Government has committed to further strengthening the legislative framework to support these partnerships. The Green Paper emphasizes the importance of introducing more stringent regulatory and institutional frameworks to ensure transparency and efficiency in PPP processes. By December 2024, new PPP Regulations will be introduced to simplify the initiation and management of PPP projects, thus encouraging greater private sector participation.

The Role of EY Zambia in PPP Success

At EY Zambia, we understand the immense potential of PPPs in driving Zambia’s sustainable growth. PPPs provide access to specialized expertise, distribute risks effectively, and promote efficient project management, while offering financial relief to the public sector. However, the success of Zambia’s PPP initiatives depends on key factors such as transparency, fair risk sharing, ensuring value for money, and maintaining project sustainability.

We are committed to supporting the Government’s efforts to streamline the PPP process and eagerly anticipate the introduction of new regulations that will clarify the PPP framework and ease the burden of engaging in such partnerships.

Conclusion

Public-Private Partnerships are emerging as a crucial instrument in accelerating Zambia’s economic development. By leveraging the private sector’s expertise and resources, Zambia can overcome its financial limitations and drive growth across multiple sectors. As the Government continues to refine its PPP framework, these partnerships will play an increasingly vital role in shaping the country’s future.