ZAMBIA UNLOCKS INFRASTRUCTURE GROWTH WITHOUT DEBT BURDEN THROUGH PPP STRATEGY

Reported by: The Agency Media
Date: 19th March 2025.
Lusaka, Zambia.

The Government’s decisive shift towards Public-Private Partnerships (PPPs) as a sustainable path for infrastructure development, positioning Zambia on a course for long-term economic resilience without exacerbating the national debt.

Addressing the House, Hon. Milupi credited President Hakainde Hichilema’s vision for fostering private sector participation, leveraging capital, efficiency, and technical expertise to drive development projects that might otherwise have been delayed due to the country’s constrained fiscal environment.

The Minister described the PPP approach as a direct response to Zambia’s inherited debt crisis. “By 2021, public debt had escalated to an alarming 119% of GDP, compared to 20.8% in 2011,” he noted. “What’s worse, much of this debt did not translate into tangible, quality infrastructure, leaving behind incomplete, overpriced, and stalled projects.”

In contrast, Hon. Milupi highlighted that the New Dawn Government’s strategic use of PPPs is reversing this unsustainable trend. Underpinned by the Public-Private Partnership Act No. 18 of 2023, the Government has streamlined the legal framework to attract both domestic and international investors, increase efficiency in procurement processes, and reduce bureaucratic delays.

Over the past three years, twelve PPP concession agreements have been signed, unlocking over USD 1.5 billion in private investment. This strategy not only alleviates pressure on public funds but also fosters economic activity, job creation, and business opportunities for local suppliers, youth, and women.

Among the flagship projects is the Lusaka–Ndola dual carriageway, which alone has saved the Government over USD 1.85 billion in potential debt. “Works are progressing on schedule, with sections already completed and opened to the public, significantly reducing travel times and enhancing road safety,” said Hon. Milupi.

Other key PPP projects include the rehabilitation of the Katete–Chanida Road (US$79.8 million), the Chingola–Kasumbalesa Road (US$41.3 million), and the Ndola–Mufulira–Sakania corridor (US$76.1 million), all of which aim to strengthen Zambia’s trade links with neighboring countries, reduce logistical bottlenecks, and open new economic corridors.

The Government has also embarked on major border road projects, including:

The Kambimba border connection to DRC’s Kolwezi (US$118.9 million)

The Mufulira–Mokambo border road (US$56.7 million)

The Solwezi–Kipushi border upgrade (US$145.3 million)

The 371 km Mutanda–Kaoma road rehabilitation (US$326.4 million)

“These strategic investments are not only transforming transport networks but also anchoring Zambia’s position as a regional trade hub,” Hon. Milupi stressed.

In closing, he urged Parliament and all citizens to rally behind the Government’s PPP agenda, emphasizing that infrastructure development, job creation, and wealth generation can and must be achieved without burdening future generations with unsustainable debt.

“President Hichilema’s administration is committed to prudent economic management, and PPPs are a critical tool in building a stronger Zambia for all,” Hon. Milupi concluded.

The Agency.

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