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PRIVATE PARTNERSHIPS NEEDED TO ADDRESS FUNDING CHALLENGES

By Scoop Reporter

THE National Development Coordinating Committee (NDCC) has recommended that the Government should focus more on Public Private Partnerships (PPPs) to ameliorate the funding problem.

In its resolutions at the conclusion of the recently held virtual meeting, the NDDC underscored the need to work closely with the private sector and development cooperating partners, among other remedial measures in the face of the negative impact of COVID-19.

The NDDC has noted the challenges the country is facing and came up with various solutions.

“The Acting Chair of the NDCC, Minister of Finance, Bwalya Ng’andu, MP, indicated that we are living in unprecedented times, with the COVID-19 pandemic ravaging the country through health shocks, domestic economic restrictions and lockdowns, revenue losses, increased spending, reduced exports, capital flow reversals and lower commodity prices.

“Given the unfavourable short- to medium-term macroeconomic and fiscal outlook, Ministries, Provinces and Spending Agencies (MPSAs) are likely to face more funding challenges, especially across non-constitutional and statutory budgetary lines,” read resolutions in part.

The committee noted that the implementation of the Seventh National Development Plan (7NDP) and Sustainable Development Goals (SDGs) are consequently going to be affected, with funding to most programmes having drastically reduced.

“The Mid-term Review has recommended that Government should focus more on Public Private Partnerships to ameliorate the funding problem. The Ministry of Finance to heighten the processes relating to the operationalization of the Public Private Partnerships as one of the financing modalities; All MPSAs to devise innovative ways of achieving more with less.

“As part of the effort to contribute to economic recovery and sustainable growth, the Ministries of Finance, National Development Planning and Commerce, Trade and Industry should work with the African Development Bank to identify areas which can enhance private sector participation; while the government is implementing measures to improve the business environment, it is necessary for private sector to step up and take up a more active role in the economic affairs of the country,” Read the recommendations in part.

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