LUSAKA – The Zambian government, through the United Party for National Development (UPND) administration, is strongly defending its strategic shift towards Public-Private Partnership (PPP) models for infrastructure development, particularly in the road sector. This approach, championed by key figures such as Mr. Noel Nkhoma, Chairperson of the National Road Fund Agency (NRFA) Board, is being lauded as a prudent measure to protect Zambia from the pitfalls of reckless borrowing that characterised past regimes.

Mr. Nkhoma, speaking on the efficacy of the new strategy, emphasised that the PPP concession model is already demonstrating tangible value. He pointed out that this innovative financing mechanism is successfully delivering much-needed road infrastructure across the country, thereby enhancing connectivity and facilitating economic activity. Crucially, he noted, it achieves this without placing undue strain on the national treasury, a stark contrast to the previous reliance on sovereign guarantees and direct loans that often led to escalating public debt.

The adoption of PPPs signifies a deliberate departure from the traditional government-funded infrastructure projects, which frequently resulted in significant financial burdens and, at times, stalled developments due to funding shortages. The current administration's stance is that by inviting private sector investment and expertise, Zambia can accelerate its infrastructure agenda while ensuring fiscal responsibility. This model transfers a portion of the financial risk and operational responsibility to private entities, aligning their interests with the successful and timely completion of projects.

Furthermore, the NRFA Board Chairperson highlighted the broader economic benefits stemming from this approach. Beyond merely constructing roads, the PPP model is designed to foster new economic opportunities, including job creation, skills transfer, and the stimulation of local businesses through supply chains. This integrated development strategy aims to ensure that infrastructure projects serve as catalysts for sustainable economic growth, rather than just isolated construction endeavours.

Critics of past infrastructure policies often cited the ballooning national debt, largely attributed to extensive borrowing for large-scale projects, some of which were perceived as having questionable economic returns. The UPND government's pivot to PPPs is seen as a direct response to these concerns, aiming to build a resilient and modern infrastructure network that is financially sustainable and contributes directly to the nation's socio-economic advancement. This strategic shift is expected to play a pivotal role in Zambia's economic recovery and long-term development trajectory, fostering investor confidence and promoting fiscal prudence.

As Zambia continues to grapple with the legacy of substantial debt, the success of the PPP model in the road sector will be closely watched. Its ability to deliver high-quality infrastructure, protect public finances, and generate economic opportunities will be a critical determinant of its broader application across other essential sectors, potentially setting a new standard for infrastructure financing and development in the country.