Government Unveils Policy Framework for Public-Private Partnerships

File photo: Vice President of the Republic of Zimbabwe Constantino Guveya Dominic Nyikadzino Chiwenga

By George Swarei
In a bid to streamline private sector involvement in national development projects, the Zimbabwean Cabinet has endorsed a comprehensive Policy Framework for Government Shareholding/Equity in Public-Private Partnerships. Spearheaded by Vice President  Constantino Chiwenga, the framework aims to enhance collaboration between the government and private entities, particularly in infrastructure rehabilitation endeavors.

Since the initiation of the “Zimbabwe is Open for Business” initiative, there has been a notable surge in private sector interest in partnering with the government and state-owned enterprises for major infrastructure projects like road and railway renovations. The proposed policy framework, aligned with the Zimbabwe Investment and Development Agency (ZIDA) Act and the Public Procurement and Disposal of Public Assets Act, seeks to ensure transparency, value for money, and the protection of national interests in such partnerships.

Outlined within the framework are guidelines categorizing projects into four main groups:

1. Public-Private Partnerships for Infrastructure Development: This category encompasses social or service projects such as roads and railways, where government retains ownership of the asset. Revenue sharing agreements mandate a minimum of 30% for the government, with its representation in the Management Committee.
2. Public-Private Partnerships for Commercial Purposes: Here, government-owned commercial entities engage in profit-oriented ventures with private investors. A Special Purpose Vehicle will be established, with the government holding a minimum of 26% equity share.
3. Public-Private Partnerships where Government Holds an Asset: In cases where the government owns assets like land or mining claims, a minimum equity share of 26% will be maintained. Joint Venture Agreements will be established to govern such partnerships.
4. Non-Performing Public-Private Partnership Projects: Projects deemed non-viable will undergo assessment for renegotiation or termination, ensuring efficient allocation of resources.
   Moving forward, adherence to the policy framework will be mandatory for all Public-Private Partnerships, with a detailed manual to be issued subsequently. The framework signals a concerted effort by the government to foster a conducive environment for private sector participation in national development initiatives while safeguarding public interests.