The impact of public-private partnerships on Zambia's economic growth and economic development
- Authors: Banda, Zondwayo
- Date: 2021-12
- Subjects: Public-private sector cooperation -- Economic aspects -- Zambia , Capital investments -- Zambia
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/53711 , vital:45717
- Description: The current globalisation is pressuring both developed and developing nations to fast-track change and development with the intention of improving the living standards of the people. With limited financial resources and razor-thin budgets, national governments now turn to private sector to collaborate in financing infrastructure that is critical for economic and social growth. Despite the increase in public-private partnership (PPP) investments in Zambia, there have not been any formal assessments of the PPPs to evaluate their impact on Zambia’s economic growth and economic development. This research evaluates the impact of PPPs on Zambia’s economic growth (proxied by gross domestic product [GDP]) and economic development (proxied by unemployment, household consumption and Gini coefficient). The research adopts the auto-regressive distributed lag (ARDL) model as the time series approach to investigating the relationship between PPPs and gross domestic product (GDP) as well as the economic development. The ARDL model was also used for evaluating the impact of PPPs on Zambia’s GDP and economic development for the 18 years from 2000 to 2017. Thirty-two self-administered questionnaires (SAQs) were received and seven interviews were conducted with key research informants. The key research informants for both the SAQs and interviews were purposively selected to provide insights into the impact of PPPs on Zambia’s GDP and economic development. The ARDL model results have established that there is a stable and long-run relationship between PPPs and Zambia’s economic growth. Similarly, insights obtained from SAQs and interviews show that PPPs are not only important in Zambia but are related to economic growth. Therefore, Zambia should continue harnessing and promoting viable PPPs to enhance its economic growth. This also entails that private sector should continue providing financial resources and expertise to spur Zambia’s economic activities. Through the use of F-statistics, the ARDL model results reveal that PPPs are cointegrated with household consumption, unemployment and the Gini coefficient. As such the ARDL model results confirm the existence of a stable and long-run relationship between PPPs and economic development. The insights obtained from SAQs and interviews highlight that PPPs in Zambia are important. Furthermore, the insights from the key informants suggest that there is a relationship between PPPs and economic development. Hence, Zambia’s continued harnessing of PPP investments is pivotal in its quest to improve the living standards of ordinary people. Using long-run coefficients, the ARDL model results demonstrate that PPPs impact Zambia’s GDP positively. PPPs have spurred economic activities through the creation of businesses. Similarly, the insights from key informants demonstrate that PPPs relate positively to GDP. The overall results suggest that PPPs impact GDP positively. As PPPs impact GDP positively, the government of the Republic of Zambia should continue harnessing the PPP investments as a pro-poor model that bolsters economic activities and fosters economic growth. The harnessing of PPP investments means that the Zambian government, through its Finance Ministry, should scale up investments in PPPs and widen the scope of sectors for PPP investments so as to achieve inclusive and faster economic growth. The ARDL model results show that PPPs affect economic development positively through increases in household consumption and reductions in unemployment rates. However, the data on the Gini coefficient reveal that PPPs have a negative impact on economic development, as PPPs contributed to the rise in the Gini coefficient for the period under review. The key informants’ insights reveal that PPPs affect economic development positively by increasing household consumption and reducing the unemployment rate and the Gini coefficient. The mixed results on the Gini coefficient data representing income inequalities could be attributed to low-quality jobs and poor employment conditions created through PPP projects. Overall, the study’s results show that PPPs have a positive impact on economic development, as they have created businesses and employment thereby contributing to the increase in household consumption. Consequently, the Zambian government should continue engaging the private sector in PPP projects. The government should also scale up PPP investments and widen their scope to include other sectors of the economy as PPP present a viable option for the continued spurring of economic activities, the creation of employment and improvements in household consumption. The research results suggest that PPPs play an important role in improving economic growth and economic development thereby supporting the original intention of the PPP strategy for both developed and developing countries. The research strongly recommends the scaling up of investments in PPPs to contribute to the reduction or eradication of poverty in Zambia – and in other developing countries in Africa. The scaling up of PPP investments has implications that require attention from policy makers. There is a need for the development and dissemination of PPP policy guidelines to improve the design, development and implementation of PPPs in Zambia. The scaling up of investments in PPPs also requires changes to be made to the current PPP Act to widen the scope of PPP investments so as to include additional economic sectors to increase GDP, improve household consumption, create new jobs and reduce the Gini coefficient in Zambia. As PPP processes are complex, increased investments in PPPs will require further training of the PPP department’s staff, the contracting authorities and the private sector to improve their regulatory and technical capacity in the design, development and implementation of PPP projects. , Thesis (PhD) -- Faculty of Business and Economic Sciences, 2021
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- Date Issued: 2021-12
Renewable energy project financing for economic growth and development: the case of Zambia
- Authors: Banda, Zondwayo
- Date: 2018
- Subjects: Renewable energy sources -- Economic aspects -- Zambia , Energy industries -- Zambia -- Finance Economic development -- Zambia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/21527 , vital:29533
- Description: Energy is a critical component for the economic growth and development of developing countries. In particular Zambia’s economy requires energy in order to contribute to the reduction of poverty and inequalities in income and gender. Zambia faces an energy deficit which is compounded by lack of adequate financing and low electricity tariffs. The current energy deficit can challenge the achievement of such goals by Zambia. The aim of this research was to explore the impact of renewable energy project financing on Zambia’s economic growth and development. The mixed research methods through the use of questionnaires and interviews were used in achieving the research aim and objectives. In addition primary and secondary data were used as data sources for this research study. The current energy deficit in Zambia has negatively affected all the sectors in Zambia. In order to address the energy deficit, investments in the energy sector particularly through the use of project finance are required as such investments have the potential to improve energy generation, distribution and supply. Zambia has many sources of renewable energy such as solar, wind, hydro, biomass and geothermal making renewable energy project financing as the potential energy source to plug the energy deficit. By extension investments in renewable energy provide an opportunity for investors to expand their businesses and recoup their investments with high returns. Thus many sectors such as health, education, agriculture and service among others would benefit from the increased energy supply thereby improving their operations and spurring economic activities. Furthermore, renewable energy would improve access to energy in both urban and rural areas where electrification rates are as low as 25% and 3% respectively. Despite such positive impacts of renewable energy project the following account for the negative impacts: Externalisation of profits by investors; and, Over dependence on hydro-power. As energy is critical for economic growth and development of Zambia the major recommendations include the following: Seizing Project Finance Opportunities – with the abundance renewable energy resources such as solar, wind, geothermal and biomass, project finance in the form of debt and equity can be utilised to develop and implement renewable energy projects in order to improve energy generation, supply and distribution; Accelerating Renewable Energy Projects - Given the positive impacts of renewable energy project financing on economic growth and development in Zambia, renewable energy projects should be accelerated to result in increased economic growth and development; Removal of Red Tape - The government should reduce the red tape to ensure attraction of investments and implementation of renewable energy projects. Removal of red tape can accelerate investments and implementation of renewable energy projects as was the case in Kenya; Raising Awareness on Renewable Energy Benefits - Making investors and citizens aware (through investment forums and government websites) about the benefits of renewable energy would attract investors but would also allow local people to participate in the implementation of renewable energy projects. Further research – As this research involved organisations and participants in Lusaka province further research involving more participants and organisations outside Lusaka province is required to improve the research results. In addition further research is required to be conducted during reduced levels of energy deficits to improve research results. In this regard the recommendations are aimed at improving energy generation, distribution and supply so as to contribute to the economic growth and development of Zambia.
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- Date Issued: 2018