Yusuf Dodia, a renowned economic analyst, has advised the Zambian government to tread carefully in its approach to Public-Private Partnerships (PPPs). While acknowledging the potential benefits of such arrangements for infrastructure development and economic growth, Dodia warned that poorly structured agreements could lead to unintended negative consequences.
PPPs have often been championed as a viable alternative for financing large-scale projects, especially in developing economies like Zambia. Dodia noted that these partnerships can provide much-needed resources and expertise, enabling governments to undertake projects that might otherwise be unaffordable. However, he stressed that not all sectors are suitable for PPPs, urging the government to conduct comprehensive feasibility studies and risk assessments before entering into agreements.
Concerns Over Loss of Control
One of Dodia’s key concerns is the potential for the government to lose control over critical national assets. He highlighted sectors such as roads, airspace, and essential government machinery as areas where state oversight must remain paramount. According to him, placing these vital sectors in the hands of profit-driven private entities could undermine national sovereignty and public interest.
“While the private sector can bring efficiency and innovation, the government must ensure that these partnerships do not compromise its ability to govern and manage critical infrastructure,” Dodia said.
Divided Public Opinion
The topic of PPPs has sparked mixed reactions among Zambians. On one hand, supporters view these partnerships as a pragmatic solution to budgetary constraints, allowing the government to fund development projects without overburdening public finances. On the other hand, critics have raised concerns about poorly negotiated contracts that disproportionately benefit private investors while leaving the public at a disadvantage.
Past experiences with privatization in Zambia—particularly in the mining sector—have fueled skepticism. Many citizens fear that poorly managed PPPs could lead to similar pitfalls, including inequitable revenue-sharing models, limited benefits for local businesses, and long-term economic disadvantages.
Transparency and Legal Safeguards
To address these concerns, Dodia emphasized the importance of strong legal frameworks and transparency in structuring PPP agreements. He urged the government to prioritize public consultations and stakeholder engagement, ensuring that such partnerships align with national development goals and protect public interests.
“Transparency and accountability are key to avoiding corruption and mismanagement. The government must put in place robust mechanisms to monitor and evaluate PPP projects,” he added.
Balancing Growth and Sovereignty
As Zambia seeks new avenues for economic growth and infrastructure expansion, the debate over PPPs remains a critical one. While the private sector can play a crucial role in driving development, Dodia’s cautionary stance underscores the need for a balanced approach. The government must navigate the delicate task of leveraging private investment without compromising national sovereignty or long-term economic stability.
With the stakes high and public trust on the line, the success of future PPPs in Zambia will depend on careful planning, transparent negotiations, and a steadfast commitment to public welfare.