South Africa, ZAMBIA
Developing Zambia’s Public-Private Partnership Legal Framework
Legal Knowledge Products
Ministry of Finance and National Planning, Public Private Partnership
Unlocking Private Sector Investment
Well-managed Public-Private Partnerships (PPPs) offer opportunities for governments to facilitate investment and economic development by drawing on the resources and skillsets of the private sector. Strong legal frameworks are necessary to ensure that PPPs deliver for the nation.
Best practices include establishing clear institutional hierarchies, transparent procurement processes, comprehensive risk management, and robust fiscal oversight. Together, such provisions mitigate the risks of corruption and of government departments losing out through poorly structured deals or the failure of partners to meet their commitments.
Well-managed Public-Private Partnerships (PPPs) offer opportunities for governments to facilitate investment and economic development by drawing on the resources and skillsets of the private sector. Strong legal frameworks are necessary to ensure that PPPs deliver for the nation.
Best practices include establishing clear institutional hierarchies, transparent procurement processes, comprehensive risk management, and robust fiscal oversight. Together, such provisions mitigate the risks of corruption and of government departments losing out through poorly structured deals or the failure of partners to meet their commitments.
CIJ’s support came at a critical time when these regulations were a key benchmark set by global partners, including the IMF. Their assistance ensured that we met these obligations within tight timelines, helping us deliver on our commitments.
Nukwase Mwanza
Assistant Director – Legal and Contract Management, PPP Office, Zambia
Improving Zambia’s PPP Regulatory Regime
In 2023, Zambia passed the PPP Act No. 18, a new law to oversee the “award and implementation of PPP projects in accordance with principles of transparency, fairness, stability, proper management, integrity, competition, economy, and long-term sustainability”. Among the consequences of the Act, which came into force in early 2024, was the creation of a PPP Office under the Ministry of Finance and National Planning to facilitate and oversee the implementation of projects.
Under the terms of the Act, the relevant Minister was given the authority to set further regulations by statutory instrument to support the implementation of its provisions. CIJ worked closely with the PPP Office to operationalise the legislation. This was a particularly important requirement for the government because the implementation of the Act had been established as a condition of donor funding from multilateral institutions.
In 2023, Zambia passed the PPP Act No. 18, a new law to oversee the “award and implementation of PPP projects in accordance with principles of transparency, fairness, stability, proper management, integrity, competition, economy, and long-term sustainability”. Among the consequences of the Act, which came into force in early 2024, was the creation of a PPP Office under the Ministry of Finance and National Planning to facilitate and oversee the implementation of projects.
Under the terms of the Act, the relevant Minister was given the authority to set further regulations by statutory instrument to support the implementation of its provisions. CIJ worked closely with the PPP Office to operationalise the legislation. This was a particularly important requirement for the government because the implementation of the Act had been established as a condition of donor funding from multilateral institutions.
CIJ: Technical Advice and Support
Working closely with the PPP Office, CIJ provided technical and financial assistance to guide the drafting process, facilitate multi-stakeholder consultations, and ensure the regulations aligned with both Zambia’s legal context and international good practices. The process began with a two-week regulatory workshop in August 2024, facilitated by CIJ, which brought together stakeholders from across government and the private sector. These consultations played a vital role in shaping practical, coherent, and enforceable regulations that give effect to the provisions of the PPP Act.
The Result: New Regulations Supporting the PPP Act
The project culminated in the incorporation into law of the PPP General Regulations and PPP Fund Regulations on 15 November 2024. These provided more detailed guidelines in areas such as the structure and procedures for PPPs, the process for setting up project implementation teams, the handling of both solicited and unsolicited proposals, and the mechanism for amending existing PPP agreements. This improved the structure and oversight of the PPP process.
With the regulations now in place, Zambia has significantly advanced the implementation of its PPP framework – creating stronger institutional clarity, greater investor confidence, and a more conducive environment for private sector participation in national infrastructure development. This is an important step towards building a stronger economy for the long term.
Working closely with the PPP Office, CIJ provided technical and financial assistance to guide the drafting process, facilitate multi-stakeholder consultations, and ensure the regulations aligned with both Zambia’s legal context and international good practices. The process began with a two-week regulatory workshop in August 2024, facilitated by CIJ, which brought together stakeholders from across government and the private sector. These consultations played a vital role in shaping practical, coherent, and enforceable regulations that give effect to the provisions of the PPP Act.
The Result: New Regulations Supporting the PPP Act
The project culminated in the incorporation into law of the PPP General Regulations and PPP Fund Regulations on 15 November 2024. These provided more detailed guidelines in areas such as the structure and procedures for PPPs, the process for setting up project implementation teams, the handling of both solicited and unsolicited proposals, and the mechanism for amending existing PPP agreements. This improved the structure and oversight of the PPP process.
With the regulations now in place, Zambia has significantly advanced the implementation of its PPP framework – creating stronger institutional clarity, greater investor confidence, and a more conducive environment for private sector participation in national infrastructure development. This is an important step towards building a stronger economy for the long term.
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