Government has called on the private sector to provide alternative financing models for the successful implementation of the 7th National Development Plan (7NDP).

In a statement, Ministry of National Development Planning (MNDP) Permanent Secretary Chola Chabala stated that government cannot afford to wait for co-operating partners to fund the 7NDP, but instead recognized the need to raise local financing through the private sector.

“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 Securities Exchange (LuSE); Insurers 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),” read the statement issued to News Diggers! in Lusaka, Tuesday, by public relations manager Chibaula Silwamba.

“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 Alexander Chiteme 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.”

According to Silwamba, the private sector had proposed that the Plan be funded through Public and Private Partnerships (PPP), capital markets, diaspora bonds, capital bonds and venture capital funds.

“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,” 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 SEC and the Lusaka Securities Exchange (LuSE) assured that the capital markets were ready and able to deliver on their proposition to support the implementation of the 7NDP, according to the statement.

SEC director of market supervision and development Mutumboi Mundia expressed optimism that the capital markets would help to achieve sustainable development.

“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 Mundia.

To ensure the successful implementation of the 7NDP, participants proposed, among other interventions, the use of capital markets, diaspora bonds, capital bonds and venture capital funds to ensure that Small and Medium Scale Enterprises (SMEs) are sustainable, according to the statement.