ZIDA Sets Rules to Strengthen Public-Private Partnerships

The Ministry of Finance, Economic Development, and Investment Promotion has unveiled new Public-Private Partnership (PPP) Guidelines aimed at enhancing governance, protecting national interests, and attracting private investment into critical infrastructure sectors.

Speaking during the Post Cabinet Briefing, Mthuli Ncube, Minister of Finance, emphasised that the guidelines establish a clear and structured framework for all PPP projects across the country.

“Working with ZIDA, we have introduced guidelines to strengthen governance and protect the national interest.

The 30 per cent shareholding requirement is a magic figure – large enough to give the Government a meaningful minority stake, board representation, and strategic voting power, yet allowing project promoters to retain 70 per cent of dividends,” he said.

The new guidelines, approved by Cabinet, cover the entire PPP lifecycle – from project identification, approval, appraisal, and development, to implementation, monitoring, evaluation, and termination.

They are designed to provide certainty for investors while ensuring citizens derive tangible benefits from major infrastructure projects.

The Guidelines provide a structured framework to attract private investment into essential sectors such as transport, energy, and water. They will also serve as an important reference tool for all stakeholders in the implementation of PPPs in Zimbabwe,” Minister Ncube said.

The guidelines complement the Zimbabwe Investment Development Agency (ZIDA) Act, ensuring compliance with government policies and value-for-money delivery through revenue-sharing arrangements in joint ventures.

They also outline the allocation of financial, technical, and operational risks between the government and private partners, ensuring that risks are borne by the party best able to manage them.

A central feature of the guidelines is the requirement for the Government to hold a minimum of 30 per cent equity in Project Joint Ventures or Special Purpose Vehicles, with the option to increase shareholding depending on project circumstances.

Other key elements of the PPP Guidelines include:

• Thresholds and classification of PPP projects

• Governance and institutional framework for PPPs

• Processing and approval procedures for PPP projects

• Comprehensive guidance on the PPP lifecycle

Minister Ncube highlighted that these reforms aim to balance investor confidence with national benefit, ensuring strategic control over key projects while promoting private sector participation.

“The PPP Guidelines will help the Government leverage capital and expertise, drive infrastructure development, and protect citizens’ interests,” he said.