The Cabinet has approved a new policy framework for government shareholding and equity in public-private partnerships (PPPs), presented by the Honourable Vice President, Dr. Gen (Rtd) C.G.D.N. Chiwenga.
The framework is part of the “Zimbabwe is Open for Business” initiative, which has attracted increased private sector interest and participation in partnering with the government and public enterprises to rehabilitate major roads, railways, and other infrastructure.
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Book NowThe policy framework aims to guide private sector participation in PPPs, as outlined under the Zimbabwe Investment and Development Agency (ZIDA) Act [Chapter 14:38] and the Public Procurement and Disposal of Public Assets Act [Chapter 22:23]. The primary objective is to ensure value for money while safeguarding national interests.
The policy framework outlines guidelines for different types of PPP projects: Public-Private Partnerships for Infrastructure Development involve social or service projects such as roads, railways, and border posts, where the asset remains with the government. Revenue-sharing arrangements must have a minimum of 30% for the government, and government representation is required in the Management Committee.
Public-Private Partnerships for Commercial Purposes involve commercial arrangements where a government-owned company partners with a private investor for profit. These are implemented through a Special Purpose Vehicle with the government holding at least a 26% equity shareholding.
Public-Private Partnerships where the government holds an asset apply to partnerships involving assets like land, mining claims, or national parks, with the government holding a minimum of 26% equity shareholding, and a Joint Venture Agreement established with the private investor. Non-performing Public-Private Partnerships will be evaluated for viability, with viable projects being renegotiated and non-viable projects recommended for termination.
All future PPPs will adhere to this policy framework. Additionally, a detailed manual will be issued to guide the implementation of these partnerships, ensuring structured and beneficial collaborations between the government and private sector.
