Gov’t calls for partnership with private sector to provide alternative, innovative financing for 7NDP

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The Ministry of National Development Planning has called on the private sector to partner with Government to provide sustainable, alternative and innovative financing for the implementation of the Seventh National Development Plan (7NDP).

Ministry of National Development Planning Permanent Secretary (Development Planning and Administration) Chola Chabala made the clarion call during a recent meeting where he received submissions on alternative financing for the Seventh National Development Plan (7NDP) from the private sector representatives.

The institutions present included Securities and Exchange Commission (SEC), Bankers Association of Zambia (BAZ), Credit Reference Bureau, Lusaka Stock Exchange (LuSE), Insurer’s Association of Zambia (IAZ), Zambia Association of Chambers of Commerce and Industry (ZACCI), Zambia Association of Manufacturers, Luano Rail/Stravena, Impact Capital Africa, as well as the Development Bank of Zambia (DBZ) and Zambia Development Agency (ZDA).

The Private sector’s submissions were in response to a call by the Secretary to the Cabinet, Dr. Roland Msiska, during the last session of the National Development Coordinating Committee (NDCC) for the sector to provide the Government with programmes they were implementing that will contribute to the attainment of the aspirations of the 7NDP.

The NDCC mandated the Ministry of National Development Planning to work with the private sector to formulate an alternative financing mechanism for the 7NDP.

Chabala assured the private sector that the Minister of National Development Planning Honourable Alexander Chiteme, MP, will meet them to discuss their submission.

He, therefore, urged other private sector entities, which were not represented but that have concrete ideas on alternative financing for the 7NDP to come on board.

Chabala said the private sector’s consolidated submissions would be submitted to the NDCC meeting scheduled to be held later this month.

The Permanent Secretary said the successful implementation of the 7NDP will depends, to a large extent, on the availability of financing for the Plan.

“In the integrated and multi-sectoral spirit espoused for the implementation of the 7NDP, the Ministry of National Development Planning decided to invite all private sector associations as well as individuals to help formulate alternative financing models or solutions for the implementation of the 7NDP, hence the hosting of this meeting,” Mr. Chabala said. “There is donor fatigue and we have to be mindful that even development partners are going through economic challenges and it’s about time we started thinking of financing our own development. We can’t perpetually be depending on our cooperating partners.”

The Securities and Exchange Commission (SEC) and the Lusaka Securities Exchange (LuSE) assured that Zambian capital markets were ready and able to deliver on their proposition to support the implementation of the 7NDP.

“Let us join hands to realise the full potential of the Zambian capital markets as an enabler of greater and sustainable economic growth and development,” said Mutumboi Mundia, Director of Market Supervision and Development, SEC.

To ensure the successful implementation of the 7NDP, participants proposed, among other interventions, the use capital markets, diaspora bonds, capital bonds, Venture capital funds, utilisation of PPP model, lowering interest rates to ensure that Small and Medium Scale Enterprises (SMEs) are sustainable, access to alternative savings and investment vehicles for households, co-financing/loan syndication with regional and international institutions, raising concessional lines of credit, fund management services and collaborating with cooperating partners, and facilitate adequate national rebranding for market integrity.

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