adminLeonard Ncube Victoria Falls Reporter
THE Government should create an enabling environment and robust polices for investment in the country and attract the private sector to come to the party for partnerships in infrastructure development projects.
This came out during deliberations on the first day of the inaugural infrastructure summit organised by the National Economic Consultative Forum in Victoria Falls yesterday.
The need for creation of an enabling investment environment, coming up with competitive regulatory framework, transparency in the tendering system, correcting perceptions and continuous involvement of the private sector in policy formulation took centre stage during discussions.
There were concerns about lack of financing systems or slow release of funds, volatile economic environment, exchange rates, unattractive balance sheet for some state entities, lack of interest from the private sector to venture into infrastructure development and lack of expertise as some of the cross-cutting challenges facing Zimbabwe’s infrastructure development.
Participants called for bankable projects that attract investors, improvement on project coordination, mobilising national resources ahead of foreign investment, improving the balance sheet of some state enterprises and country’s competitiveness, fine tuning regulatory frameworks, ensuring transparency in project implementation, improving knowledge management system, and Treasury to mainstream funding of basic infrastructure maintenance for the country to gain investor confidence.
President Mnangagwa is expected to officially open the event today, under the theme:
“Harnessing the potential of public private partnerships to resolve infrastructure challenges in Zimbabwe”.
The idea of coming up with the summit on infrastructure was born out of stakeholder engagements that the NECF undertook early this year, where the need to crowd-in private sector players to bridge the infrastructure financing gap, through models such as public-private partnerships (PPPs) was noted.
Participants said there is need for the private sector to come to the party and close the infrastructure funding gaps in the country through PPPs.
They called for inclusion of the private sector at policy formulation than to invite them as an afterthought, as well as development of a knowledge information platform and flexible regulation for procurement processes. From the Zimbabwe Investment Development agency, Ms Silibaziso Chizvina noted a huge investment shortfall which she said can be covered by the private sector.
“There should be an infrastructure plan to realise full implementation of NDS1. When we start infrastructure development we activate the manufacturing sector and the private sector should come in and identify gaps. We need a financial investment model that can lead to financial institutions funding infrastructure for long tenure at concessionary interest rates long term financing,” she said.
National Housing and Social Amenities Permanent Secretary Engineer Joy Makumbe said Zimbabwe needs an environment and robust policy as well as an integrated approach to infrastructure development to encourage investment. Transport and infrastructural Development Permanent Secretary Engineer Theodius Chinyanga said the available infrastructure projects opportunities are not really viable hence the need to come up with a model to create attractiveness.
“As Government we really need to act in a businesslike manner and right price our services.
Some of the challenges are a result of the pricing system and we need right models that attract investors and it is important to understand that investors are not donors because they want to get their investment back,” he said.
In his welcome remarks earlier, Deputy Chief Secretary in the Office of the President and Cabinet and NECF steering committee co-chair Ambassador Nicholas Dlamini Kitikiti said there is a need to put heads together to come up with solutions to challenges affecting the country’s infrastructure development.
“While recognising the great efforts by Government in terms of developing and financing infrastructure as the nation seeks to deliver on National Development Strategy (NDS1) objectives and move towards the achievement of Vision 2030, stakeholders highlighted the need to also crowd-in private sector players bridging the infrastructure financing gap, through models such as public-private partnerships.
“The need for creating an enabling environment for the participation of such private players as well as ensuring strong coordination in the development and delivery of infrastructure projects was also emphasised. In light of the above, the NECF realised the need for a multi stakeholder dialogue on infrastructure development,” said Amb Kitikiti.
He said the major objective of the gathering is to find ways of putting into practice known and novel ways of addressing challenges affecting infrastructure development in Zimbabwe with a particular focus on PPPs.
Online Reporter