The Zimbabwe National Chamber of Commerce (ZNCC) says for the nation to realise the full potential of public private partnership, there is need for a legislative framework to compliment the policy framework.The call by ZNCC follows efforts made by government and the private sector in seeking ways of promoting public private partnerships for economic developments.
The PPP framework has not been implemented by state enterprises and the private sector owing to various economic constraints ranging from unavailability of funds to bankroll the projects to non-commitment from stakeholders.
In an interview with ZBC News in the capital, ZNCC Economist Mr. Kipson Gundani said the implementation of the PPP framework requires the adoption.
â€œThe PPP framework requires a bind legislation to ensure that stakeholders become committed which is one of the challenges that stall the implementation of the policy framework,â€ said Mr. Gundani.
Mr. Gundani further highlighted that the uptake of public private partnership has been very low as state enterprises and private firms are facing financial constraints, hence efforts are directed towards recapitalising their various firms than new business ventures.
â€œThere has been lack of liquidity on the market thereby forcing firms to concentrate on improving their current operations which are heavily undercapitalised,â€ he added.
One of the public private partnership model has been adopted by Zimbabwe National Road Administration (ZINARA) and Group 5 in the rehabilitation of the countryâ€™s highways, while Agricultural Rural Development Authority (ARDA) partnered with Green Fuels in the setting up of an ethanol plant in the Lowveld.