THE Zimbabwe Investment and Development Agency (Zida) is responsible for facilitating and promoting investment in Zimbabwe under the Office of the President, governed by the Zida Act (Chapter 14.38). The agency’s mandate is to promote and facilitate valuable investments that drive economic growth, unlock opportunities, and create employment. There are three main categories of investments, namely, general investment, public-private partnerships (PPP), and special economic zones. PPPs, in particular, consist of contractual arrangements between government/agencies and the private sector to deliver a project or to provide services. Zida assesses all PPPs and presents them to the PPP Committee for recommendation to the Cabinet. In this interview, our business reporter, Lee Musaidzi (LM), spoke to Zida chief executive officer Tafadzwa Chinamo (TC) to discuss PPPs:
LM: What is the current framework for PPPs in Zimbabwe, and how does Zida facilitate these partnerships?
TC: The primary legislation governing PPPs in Zimbabwe is the Zimbabwe Investment and Development Agency Act [Chapter 14:38].
Other key pieces of legislation that impact PPPs include the Public Procurement and Disposal of Public Assets Act, the Public Finance Management Act, the Income Tax Act, and the Companies and Other Business Entities Act.
These are further complemented by secondary legislation and policies such as the PPP Policy Framework and Directives, as well as the PPP Guideline.
The agency plays a facilitative role by streamlining the structuring, approval, and implementation of PPP projects. This includes receiving expressions of interest (EoIs) from potential investors and engaging with relevant ministries, departments, and agencies (MDAs) for consideration.
Once MDAs have undertaken the necessary procurement processes, the agency receives PPP project proposals, conducts thorough reviews and analysis, and makes recommendations to the cabinet committee responsible for PPPs. The agency is the secretariat of the cabinet committee.
The PPP Committee is responsible for ensuring the proposed PPP projects align with national development priorities and are structured in a way that they satisfy the legal, technical, and financial standards and are to be implemented in the best of the public interest.
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LM: What are the eligibility criteria for private entities looking to engage in PPP projects with Zida?
TC: There is no set eligibility criterion for private entities seeking to engage in PPP projects in Zimbabwe. However, general expectations must be met.
First, entities must have a clear legal status, meaning they must be legally registered as private enterprises with no affiliation to the government of Zimbabwe.
Proof of financial capacity is essential, requiring companies to demonstrate a strong financial position and the ability to secure funding for the proposed project.
Lastly, technical expertise is a key consideration, as companies must either possess proven experience and capability in the relevant sector or have a contractual arrangement with a qualified technical partner.
LM: How does Zida select projects for PPPs, and what factors are considered in the decision-making process?
TC: The agency employs a structured approach to selecting PPP projects, ensuring alignment with Zimbabwe’s national development priorities and delivering tangible economic benefits.
Every potential project is evaluated based on key criteria, including its alignment with national strategic development goals such as the National Development Strategy 1 (NDS1) and National Development Strategy 2 (NDS2).
Additionally, value for money is a critical factor in ensuring that public funds are used efficiently. Risk allocation is another major consideration, with an expectation that the majority of project risks should be borne by the private investor.
Other factors include affordability and long-term sustainability, ensuring that the project can be effectively maintained without excessive public sector burden.
LM: What regulatory challenges do PPPs face in Zimbabwe, and how does Zida work to mitigate these challenges?
TC: PPPs in Zimbabwe face challenges related to legislative overlaps, as multiple laws impact their implementation. Although the Zida Act [Chapter 38:14] provides overarching legislation for PPPs, it does not override provisions in other Acts, which can create complexities in regulatory compliance.
To address these challenges, the Agency has developed a comprehensive PPP guideline aimed at streamlining processes and providing clarity for investors and stakeholders. The guideline covers the full PPP project cycle, including identification, preparation, procurement, and implementation.
Further, the agency conducts capacity-building workshops for MDAs to enhance understanding of PPP appraisal processes. By strengthening governance mechanisms, improving institutional capacity, and fostering transparency, Zida aims to create a predictable regulatory landscape that boosts investor confidence and ensures successful project execution.
LM: What funding mechanisms are available for PPP projects, and how can private investors access these resources?
TC: PPPs in Zimbabwe are primarily financed through various sources, including multilateral development finance institutions, private equity funds, institutional investors, banks, and high-net-worth individuals.
The private party bears the responsibility to raise funding and can recoup its investment from project revenues. The success of fundraising efforts depends largely on project commercial and technical viability.
LM: How does Zida monitor the performance of PPP projects, and what metrics are used to evaluate success?
TC: Zida actively monitors the performance of all approved PPP projects to ensure compliance with contractual obligations and expected outcomes. Upon approval, the agency develops monitoring and evaluation (M&E) frameworks for each project, which will be used throughout the monitoring and evaluation of cycle.
Further, the PPP projects are jointly monitored by the parties through an equally represented joint implementation committee.
The agency produces periodic reports that are submitted to the PPP committee. Key performance metrics used to assess success include technical progress, financial progress, governance, compliance with statutory and regulatory requirements, adherence to the agreed project scope and budget, and overall project impact.
These evaluations help to ensure that PPP projects remain on track and deliver the intended economic and social benefits.
LM: How many PPP projects has the agency reviewed and assessed so far?
TC: In 2024, a total of nine PPP projects were tabled before the cabinet and subsequently approved for implementation. These projects are currently at various stages, including contract negotiations, working towards financial close and implementation.
LM: What future opportunities does Zida foresee for PPPs in Zimbabwe, particularly in key sectors such as infrastructure, health, and education?
TC: The agency recognises that there are significant opportunities for PPPs in Zimbabwe, particularly in infrastructure, health, and education, where private sector involvement can accelerate development and service delivery.
In the education sector, PPPs can support the construction of student accommodation at state universities, the development of modern university facilities to accommodate growing student populations, and the establishment of research centres that promote innovation and technological advancement.
Additional opportunities exist in expanding e-learning infrastructure and developing vocational training centres to equip young people with relevant skills for the modern job market.
In the health sector, PPPs offer the potential for strengthening healthcare infrastructure and improving service delivery. Key focus areas include the construction and expansion of primary healthcare facilities and regional hospitals, as well as the local production and efficient management of medications and medical supplies through private-sector partnerships.
There are also opportunities for enhancing emergency response systems, including the development of advanced emergency medical infrastructure and public-private clinics that improve accessibility to quality healthcare. In the infrastructure sector, Zimbabwe has an urgent need for large-scale investment in critical public infrastructure, including roads, railways, and bulk infrastructure projects that support urban development and industrial expansion.
PPPs will be instrumental in financing and constructing modern road networks, rehabilitating railway systems to improve freight and passenger transport, and developing airports and logistics hubs to enhance regional and international connectivity.
Furthermore, investments in bulk water supply and wastewater treatment facilities will be essential for urban resilience and sustainable development.
By leveraging PPPs, the agency aims to foster sustainable partnerships that drive infrastructure development, enhance public service delivery, and improve Zimbabwe’s global competitiveness as an investment destination.
