INVESTING in infrastructure is a classic move by governments to improve the level of economic growth.
More transport, logistics, and related infrastructure leads to economic development of a country.
Increasing quality transport facilities leads to access to more markets, and efficient transport is cheaper.
One of the key measures of macroeconomics is economic growth, and logistics and transport play a key part in this.
To encourage economic growth, governments invest in transport and logistics infrastructure such as roads, railways, and airports.
One of the ways of appraising the success of a government’s influence on the economy is by comparing how it has invested in the growth of logistics and transport.
Although investing in transport and logistics infrastructure is an economic spinner, it requires colossal sums of money to successfully undertake the task.
If not well thought out, investments in transport and logistics infrastructure could adversely affect financing of other sectors of the economy.
On this premise, we welcome Government’s initiative to adopt the public-private partnership (PPP) model of financing all future roads and other transport infrastructure projects.
During the 2024 Joint Donor Forum on Transport Sector Performance Review meeting yesterday, Ministry of Transport and Logistics Permanent Secretary Frederick Mwalusaka said financing roads and other transport infrastructure projects through PPPs will lighten the burden on the national treasury.
“Government is promoting the development of infrastructure projects through the PPP model of financing.
“Since the start of this initiative, the transport sector has witnessed implementation of infrastructure projects such as the 327km dual carriageway between Lusaka and Ndola, and the US$32 million reconstruction of the 35km Chingola-Kasumbalesa road PPP project,” Mr Mwalusaka shared.
Clearly, this is a very cost-effective way of undertaking roads and other transport and logistics infrastructure projects for which Government should be extolled.
The PPP model of financing roads and other transport infrastructure has become a global trend, which even developed countries have come to adopt and, therefore, Government is on the right track with this initiative.
The funds saved from financing transport infrastructure projects through the PPP model will be channelled to other needy sectors of the country’s economy, such as procuring medicines for hospitals.
Letting Government alone to finance transport infrastructure projects could negatively impact other sectors and possibly leave the country in unsustainable debt.
We all saw what happened during the Patriotic Front regime; it borrowed heavily to finance road infrastructure projects and left the country with choking debt which the current administration is working hard to have it restructured.
It is important for Government to strategically invest in transport infrastructure projects because of the innumerable benefits this has on the country’s economic growth.
Investing in transportation infrastructure creates an efficient transport system which allows easier movement of labour from households to firms, goods and services between companies, and from firms to households.
Transport and logistics infrastructure is crucial because it plays a pivotal role in promoting economic opportunities.
Infrastructure such as roads, railways, and airports connects regions, cities, and countries. It facilitates the movement of goods, people, and services.
Also, efficient transport infrastructure directly impacts economic productivity by reducing transportation costs, enabling timely delivery of goods and enhancing market accessibility.
Government, therefore, deserves accolades for opting for the PPP model of financing transport infrastructure projects as this is cost-saving, hence progressive.
PPP transport infrastructure financing good move
INVESTING in infrastructure is a classic move by governments to improve the level of economic growth.
More transport, logistics, and related infrastructure leads to economic development of a country.
Increasing quality transport facilities leads to access to more markets, and efficient transport is cheaper.
One of the key measures of macroeconomics is economic growth, and logistics and transport play a key part in this.
To encourage economic growth, governments invest in transport and logistics infrastructure such as roads, railways, and airports.
One of the ways of appraising the success of a government’s influence on the economy is by comparing how it has invested in the growth of logistics and transport.
Although investing in transport and logistics infrastructure is an economic spinner, it requires colossal sums of money to successfully undertake the task.
If not well thought out, investments in transport and logistics infrastructure could adversely affect financing of other sectors of the economy.
On this premise, we welcome Government’s initiative to adopt the public-private partnership (PPP) model of financing all future roads and other transport infrastructure projects.
During the 2024 Joint Donor Forum on Transport Sector Performance Review meeting yesterday, Ministry of Transport and Logistics Permanent Secretary Frederick Mwalusaka said financing roads and other transport infrastructure projects through PPPs will lighten the burden on the national treasury.
“Government is promoting the development of infrastructure projects through the PPP model of financing.
“Since the start of this initiative, the transport sector has witnessed implementation of infrastructure projects such as the 327km dual carriageway between Lusaka and Ndola, and the US$32 million reconstruction of the 35km Chingola-Kasumbalesa road PPP project,” Mr Mwalusaka shared.
Clearly, this is a very cost-effective way of undertaking roads and other transport and logistics infrastructure projects for which Government should be extolled.
The PPP model of financing roads and other transport infrastructure has become a global trend, which even developed countries have come to adopt and, therefore, Government is on the right track with this initiative.
The funds saved from financing transport infrastructure projects through the PPP model will be channelled to other needy sectors of the country’s economy, such as procuring medicines for hospitals.
Letting Government alone to finance transport infrastructure projects could negatively impact other sectors and possibly leave the country in unsustainable debt.
We all saw what happened during the Patriotic Front regime; it borrowed heavily to finance road infrastructure projects and left the country with choking debt which the current administration is working hard to have it restructured.
It is important for Government to strategically invest in transport infrastructure projects because of the innumerable benefits this has on the country’s economic growth.
Investing in transportation infrastructure creates an efficient transport system which allows easier movement of labour from households to firms, goods and services between companies, and from firms to households.
Transport and logistics infrastructure is crucial because it plays a pivotal role in promoting economic opportunities.
Infrastructure such as roads, railways, and airports connects regions, cities, and countries. It facilitates the movement of goods, people, and services.
Also, efficient transport infrastructure directly impacts economic productivity by reducing transportation costs, enabling timely delivery of goods and enhancing market accessibility.
Government, therefore, deserves accolades for opting for the PPP model of financing transport infrastructure projects as this is cost-saving, hence progressive.