(3 minutes read)
Zambia’s Minister of Infrastructure Charles Milupi said his ministry was only allocated K4.9 billion for the entire 2022 financial year, forcing the ministry to opt for undertaking infrastructure projects under the Private Public Partnership (PPP) model. Two years ago, the funds allocated for infrastructure projects were about K10.55 billion. Last year in 2021, it was K6.5 billion, and this year in 2022, it is further reduced to K4.9billion. The allocation for infrastructure has been reduced over the last three years.
Milupi, however, added that his Ministry was hopeful to carry out the majority of projects under the PPP model. Analysts, however, cautioned that PPP may prove to be costly since the private partners will have to realize profits and will have mostly short-term motives. Milupi said that concessions for some of these projects are underway or waiting for the concessionaires to reach financial closure for the projects to get started.
Among the projects, the Minister mentioned to be done under PPP are the Lusaka-Ndola dual carriageway, the Chingola – Chililabombwe – Kasumbalesa road, and the Solwezi- Mutanda dual carriageway, the Kasempa, Luampa, and Kaoma roads among others.
Some of the projects have their concession already given and some are about to be given like the Lusaka -Ndola and the Chingola-chililabombwe-Kasumbalesa. Milupi further added that the ministry did not have enough funds, and admitted that there were issues with funding because the budget is limited.
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Zambia has massive infrastructure needs that include schools, roads, hospitals, and others. The country has struggled to leverage its extensive mineral wealth to generate more revenue for its treasury. The agriculture sector, which has the potential for exports and earning foreign exchange is highly fragmented and to a great extent, politicised.
