HARARE, Mar. 4 (NewsDay Live) – Zimbabwe’s government has approved new Public Private Partnership (PPP) guidelines that entrench a minimum 30% government stake in all project vehicles, as Harare moves to tighten infrastructure oversight while maintaining a policy thread that echoes its past indigenisation drive.
The framework, presented by the Minister of Finance, Economic Development, and Investment Promotion, is designed to standardise the entire PPP life cycle—from project identification and appraisal to implementation and termination—while enforcing compliance through the Zimbabwe Investment and Development Agency (Zida) Act.
The requirement that the government retain at least 30% shareholding in joint ventures or special purpose vehicles mirrors earlier empowerment policies under the Indigenisation and Economic Empowerment Act, which mandated majority local ownership in foreign-owned firms.
However, due to a drop in investment owing to the Act, it was later largely scrapped in subsequent reforms aimed at attracting foreign capital.
“Under the PPP Guidelines, government is entitled to a minimum shareholding of 30% in the Project Joint Venture or Special Purpose Vehicle, with an option of increasing shareholding,” the post-cabinet statement read.
“Other critical elements of the PPP Guidelines include: i. thresholds for PPP projects; ii. classification of PPP projects; iii. Governance and institutional framework for PPPs; iv. Processing of PPP Projects; and v. the PPP Cycle.”
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The government noted in the statement that it continued to fine-tune the existing PPP framework aimed at leveraging capital and expertise for all infrastructure projects across the country.
“In that regard, government has developed new guidelines to be followed by parties (the government and the private sector) during the entire PPP life cycle, encompassing project identification, approval development, appraisal, implementation, monitoring and evaluation, and termination of PPPs,” the post-cabinet statement read.
“In addition to providing a structured framework to attract private investment and partnership into essential sectors such as transport, energy, and water, the mandatory guidelines will serve as an important reference tool to all stakeholders in the implementation of the PPPs in Zimbabwe.”
The cabinet stated that the guidelines will complement the Zida Act in the enforcement of policy compliance, ultimately ensuring that the government realises value for money through the inclusion of revenue-sharing arrangements in joint ventures.
“The Guidelines outline financial, technical, and operational risks to be shared between the government and private partners, ensuring that risks are borne by the party best able to manage them,” the post-cabinet statement read.