World Bank report highlights need for private funding in Zambia’s development agenda

A newly launched World Bank report underscores the urgent need for Zambia to harness private funds and innovative financing mechanisms to support its ambitious development agenda.

The findings of the Public Finance Review were unveiled on Monday at the Mulungushi International Conference Centre.

The report highlighted a key challenge: government financing alone was insufficient to fulfill Zambia’s developmental goals without substantial contributions from private capital.

This called for a strategic shift in how the country approached funding for critical projects.

During the launch, Finance and National Planning Minister, Situmbeko Musokotwane, stated the necessity of utilising various financing avenues, including public-private partnerships, green bonds, carbon trading, and diaspora funds.

“The government’s desire is to fund the majority of capital investments through private capital to reduce the fiscal risks associated with large-scale projects,” he stated.

Musokotwane elaborated that the report would enable the government to take stock of its revenue and spending policies, facilitating improved project prioritization across all sectors, including state-owned enterprises.

“This approach is vital for effective public investment management,” he noted.

The Minister expressed optimism that ongoing discussions around fiscal and public project management would lead to the successful delivery of public investments at optimal costs.

He reiterated government’s commitment to strengthening fiscal governance to foster broad-based growth.

“The insights provided by this report will be invaluable for the government and stakeholders as we work to enhance fiscal governance and promote inclusive economic growth in Zambia,” Musokotwane said.

The timing of the report’s launch is particularly significant, as the new dawn government is preparing to present the 2025 national budget.

This budget aims to stabilise energy production, restore economic growth, create jobs and protect vulnerable populations while implementing necessary fiscal adjustments.

Musokotwane concluded, “The budget will emphasize creating an environment conducive to revitalising economic activity, ensuring that we leverage all available resources to achieve our developmental objectives.”

The report’s findings are expected to guide policymakers in making informed decisions that aligned with Zambia’s long-term vision for sustainable development.

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