Implementation of Public Private Partnerships (PPPs)
Projects in Zambia
FEATURED PAPER
By Thomas Phiri
Business and Management
Graduate School of Business
University of Zambia
Lusaka, Zambia
ABSTRACT
Purpose: Public-Private Partnerships (PPPs) have emerged as a critical means of overcoming infrastructure gaps and enhancing service provision in Zambia – especially for State-Owned Enterprises (SOEs). The collaborations intend to exploit the public sector’s ability to provide goods and the private sector’s efficiency, innovation, and capital. However, the results of PPPs in the case of Zambian SOEs are mixed due to issues like inadequate finances, legal ambiguities, and poor involvement of stakeholders. This paper seeks to outline the Critical Success Factors (CSFs) necessary for the successful implementation of PPPs by SOEs in Zambia.
Design/methodology/approach: Through qualitative procedures, the study is based on a review of literature, case studies, and empirical data gathered from a official reports from government, private sector, and SOEs.
Findings: The results indicate five interrelated CSFs: active and supportive regulatory environment, financial feasibility, stakeholder willingness, capacity development, and political support. While Zambia’s Public-Private Partnership Act of 2023 provides a legal basis for the formation of PPPs, the lack of implementation, such as vague directives on procurement and poorly defined risk distribution, pose problems. Financial feasibility is still a major issue due to the great indebtedness and scarce resources of several SOEs. Engagement with stakeholders, especially local communities and civil society groups, is critical to establishing trust necessary for accomplishing projects. Many SOEs lack the requisite technical and managerial skills to effectively execute PPPs; thus, capacity building is also critical. Last, there must be continuous political good will to foster an environment that is supportive of PPPs.
Study Recommendations: The recommendations that are proposed include, but are not limited to, establishing an effective regulatory framework, improving financial mechanisms, enabling stakeholder engagement, investing in capacity building, and enabling political will. By dealing with the CSFs, the effectiveness of the PPP frameworks in Zambia can be increased, allowing SOEs to build and maintain essential infrastructure and services needed for sustainable development.
Paper type: Research paper
Keywords: Public-Private Partnerships (PPPs), State-Owned Enterprises (SOEs), Critical Success Factors (CSFs), Zambia, Infrastructure Development, Stakeholder Engagement.
INTRODUCTION
Many economists and finance experts agree that Public-Private Partnerships (PPPs) were the best strategy to manage public infrastructure and services in most developing countries such as Zambia and the sub-Saharan Africa. This business model combines State-Owned Enterprises (SOEs) with the private sector where an SOE contracts a private company to design, finance, build, and operate a public infrastructure project for a defined period after which it is transferred. This is a PPP model known as Design, Build, Finance, Operate Maintain and Transfer (DBFOMT). It should be noted that there are various types of PPP models. The common ones being – build operate and transfer, – service contracts, – build finance and own etc. The special report by the Director, COMESA Monetary Institute, Zeidy (2020) highlighted the following major models of PPPs:
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How to cite this paper: Phiri, T. (2025). Critical Success Factors (CSFs) for State Owned Enterprises (SOEs) Implementation of Public Private Partnerships (PPPs) Projects in Zambia; PM World Journal, Vol. XIV, Issue IV, April. Available online at http://pmworldlibrary.net/wp-content/uploads/2025/03/pmwj151-Apr2025-Phiri-critical-success-factors-for-state-owned-ppp-projects-in-Zambia.pdf
About the Author
Thomas Phiri
Lusaka, Zambia
Thomas Phiri is a PhD student at the University of Zambia and a Fellow of the Zambia Institute of Chartered Accountants (ZICA), holder of Association of Chartered Accountants (ACCA) and a holder of Masters of Science in Financial Management from Edinburgh School of Business at Harriot Watt University in Scotland.
Thomas has worked in both the Private and Public Sectors in Finance and Accounting divisions for a period well over 20 years and most of which has been in Public sector. In the Public sector he has worked in the Ministry of Health, Office of the Vice President, and Ministry of Finance where he was involved in debt management and management of Government instruments and creation of hybrid instruments. He has also sat on several Boards such as the Zambezi River Authority Board, Itezhi-Tezhi Hydro Board, Mopani Plc board, etc.
Currently he’s under the Accountant General of the Republic of Zambia as Director of Finance at the Ministry of Community Development and Social Services where he’s heading the Finance Department with over 80 employees. The ministry has over 500 employees across the country.
Areas of interest include Financial Management, Investment Management, Public-Private Partnership Projects Management and Financing, Strategic Management, and Financial Accounting in the Public Sector.
He can be contacted at phiritom76@yahoo.com
