Government has allocated about K87million to set up an infrastructure Fund which will be used for financing projects.

Ministry of Finance Permanent Secretary Mukuli Chikuba said the Infrastructure fund will be used to finance projects with financing from the infrastructure bonds, development banks and private funds such as shares.

This is according to a press statement issued by First Secretary for Press and Public Relations at the Zambian High Commission in South Africa Naomi Nyawali.

Nyawali stated that Chikuba was speaking at the Zambia Mission in Pretoria South Africa When he paid a Courtesy call with his delegation on Zambia’s High Commissioner to that country Emmanuel Mwamba.

The Permanent Secretary said the the introduction of the Fund in Zambia was important adding that financing projects such as roads and rails would be easily done without any challenges.

He added that during their meetings with the Development Bank of South Africa (DBSA)and the Industrial Development Cooperation (IDC), and Landbank, it was agreed that the South African and Zambian governments would co-invest in the fund and advised how the infrastructure Fund could be operated.

Chikuba stated that the signing of Memorandum of Understanding (MOU) regarding the operationalization of the Cooperation were expected to be signed during President Jacob Zuma’s the state visit to Zambia in October 2017.

The Permanent Secretary further stated that projects to benefit from the fund would be appraised for investors to express interest depending on the their area of interest.

Meanwhile Zambia’s High Commissioner to South Africa Emmanuel Mwamba said infrastructure development was key in every developing country.

He said the African union and SADC agenda of industrialization would only be realized when Infrastructure such as roads, rail, ports and airports were built.

He said about 70% of Zambia’s Foreign Direct Investment comes from South Africa adding that the bilateral relations between the two countries cannot be ignored.

The Zambian delegation in South Africa was led by Ministry of Finance Permanent Secretary, accompanied by officials from the Ministry of Infrastructure and housing ,Zambia Railways ,Zambia Revenue Authority and Industrial Development Cooperation.