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Michael Tome in Victoria Falls
Private sector players in Zimbabwe and Zambia have implored their governments to come up with clear investment frameworks that attract companies to venture into public, private partnerships.
This emerged during deliberations made by delegates attending the Zimbabwe – Zambia Infrastructure Summit here yesterday.
The private sector stakeholders called on governments not to expect partnerships that come as donations, but should craft proposals that can be monetised and bring financial returns.
Zimbabwe now lags behind in terms of infrastructure development especially road and railway presenting urgent need to address this growing challenge.
Some experts say Zimbabwe needs up to US$34 billion to revamp its general infrastructure.
This country lies at the heart of North South corridor hence significant traffic volumes pass through on daily basis.
However, the dilapidated state of Zimbabwean roads has seen the construction of Kazungula Border Post as cargo transporters now evade the declining state of local roads particularly the Beitbridge – Harare and Harare – Chirundu Highways.
According to engineers, tarred roads life span is 15 years yet considerable number of roads in Zimbabwe were built during pre-1980 independence period.
Giving submissions at the ongoing summit Mashonaland Holdings managing director Gibson Mapfidza, indicated that the Government of Zimbabwe should monetise its infrastructure projects to lure local private companies and investors.
He implored the Zimbabwe National Road Administration, National Railways of Zimbabwe and other infrastructure related Government institutions, to create monetised structures with a win-win outcome for both government and the investors.
“Government needs to create investment and legal frameworks, so that investors know that government is willing to partner on a business basis not social services or donations.
“That is what investors want because they want to make a lot of decisions, they represent their shareholders so they want that information for decision making purposes. I hear a lot of this ‘come and let’s talk,’ but private sector would not come and have such conversations, they fear that their investments will end up like donations without getting back any returns,” said Mr Mapfidza.
He pointed out that pension funds were there to finance such projects, but there was need for accountability.
“Money especially from policy holders is money that will be held on behalf of other people.
“We need to commodify our infrastructure, our roads and attract investment. That’s what investors would want to know so that they know that returns are within range, calculate and make estimate tolls that can be generated from those roads,” he said.
Institute of Directors Zimbabwe representative Mike Juru, called on authorities to allow the private sector to take space and bring efficiency in infrastructure development.
“The need for authorities to work together cannot be over emphasised, Government has its own limitations, Government is funded by private sector in the form of taxes and it should therefore allow the private sector to spearhead some of the projects,” said Mr Juru.
Running under the theme; “Infrastructure Key to Economic Growth and Shared Prosperity”, the summit intends to come up with suggestions on issues around improvement of trade synergies, favourable policies — attracting investors for various infrastructure projects, structural challenges and solutions to ensure competitiveness.
Online Reporter