Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?
Abstract Background Zimbabwe envisions being an upper-middle-income economy by the year 2030. The vision 2030 has infrastructure development as a stand-out pillar upon which it is founded. The vision envisages well-developed, modern, efficient and resilient infrastructure as paramount to Zimbabwe’s...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-04-01
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| Series: | Environmental Systems Research |
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| Online Access: | https://doi.org/10.1186/s40068-023-00295-7 |
| _version_ | 1797836213470625792 |
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| author | Justice Mundonde Patricia Lindelwa Makoni |
| author_facet | Justice Mundonde Patricia Lindelwa Makoni |
| author_sort | Justice Mundonde |
| collection | DOAJ |
| description | Abstract Background Zimbabwe envisions being an upper-middle-income economy by the year 2030. The vision 2030 has infrastructure development as a stand-out pillar upon which it is founded. The vision envisages well-developed, modern, efficient and resilient infrastructure as paramount to Zimbabwe’s economic recovery. The policy plan seeks to increase infrastructure investments in energy, transport, information technology, tourism, housing, and water and sanitation. However, a still hesitant private sector exists with regard to investment in water and sanitation infrastructure even in developed countries. Thus, the study seeks to analyse determinants of financing water and sanitation public private partnerships in Zimbabwe given that there is no consensus between reseachers on how determinant factors impact PPP investments. Methods The study applied Tobit regression methodology on data collected for the 25 years ending 2021 to investigate determinants of financing water sanitation PPPs in Zimbabwe. Tobit regression method is preferred given the censored nature of the investment values of water and sanitation public private partnerships that reached financial closure in Zimbabwe. Results In Zimbabwe, financial market development is a key financing determinant of water and sanitation public private partnerships. Both the capital and bank market development influences infrastructure financing in Zimbabwe`s water and sanitation sector. Moreover, foreign direct investment negatively and significantly relates with water and sanitation public private partnership investments. Conclusion Attracting private investment into Zimbabwe`s water and sanitation sector requires that policy design targets capital and bank market development. Reforms can be achieved through putting in place sound frameworks that facilitate effective financial intermediation systems, enhance market liquidity and lower cost of capital. |
| first_indexed | 2024-04-09T15:06:15Z |
| format | Article |
| id | doaj.art-5591eb950c3b45249964ae1d0aa23b69 |
| institution | Directory Open Access Journal |
| issn | 2193-2697 |
| language | English |
| last_indexed | 2024-04-09T15:06:15Z |
| publishDate | 2023-04-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Environmental Systems Research |
| spelling | doaj.art-5591eb950c3b45249964ae1d0aa23b692023-04-30T11:29:54ZengSpringerOpenEnvironmental Systems Research2193-26972023-04-0112111110.1186/s40068-023-00295-7Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?Justice Mundonde0Patricia Lindelwa Makoni1Department of Finance, Risk Management and Banking, University of South AfricaDepartment of Finance, Risk Management and Banking, University of South AfricaAbstract Background Zimbabwe envisions being an upper-middle-income economy by the year 2030. The vision 2030 has infrastructure development as a stand-out pillar upon which it is founded. The vision envisages well-developed, modern, efficient and resilient infrastructure as paramount to Zimbabwe’s economic recovery. The policy plan seeks to increase infrastructure investments in energy, transport, information technology, tourism, housing, and water and sanitation. However, a still hesitant private sector exists with regard to investment in water and sanitation infrastructure even in developed countries. Thus, the study seeks to analyse determinants of financing water and sanitation public private partnerships in Zimbabwe given that there is no consensus between reseachers on how determinant factors impact PPP investments. Methods The study applied Tobit regression methodology on data collected for the 25 years ending 2021 to investigate determinants of financing water sanitation PPPs in Zimbabwe. Tobit regression method is preferred given the censored nature of the investment values of water and sanitation public private partnerships that reached financial closure in Zimbabwe. Results In Zimbabwe, financial market development is a key financing determinant of water and sanitation public private partnerships. Both the capital and bank market development influences infrastructure financing in Zimbabwe`s water and sanitation sector. Moreover, foreign direct investment negatively and significantly relates with water and sanitation public private partnership investments. Conclusion Attracting private investment into Zimbabwe`s water and sanitation sector requires that policy design targets capital and bank market development. Reforms can be achieved through putting in place sound frameworks that facilitate effective financial intermediation systems, enhance market liquidity and lower cost of capital.https://doi.org/10.1186/s40068-023-00295-7Public–Private PartnershipsWater and sanitationInfrastructure financeZimbabwe |
| spellingShingle | Justice Mundonde Patricia Lindelwa Makoni Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? Environmental Systems Research Public–Private Partnerships Water and sanitation Infrastructure finance Zimbabwe |
| title | Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? |
| title_full | Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? |
| title_fullStr | Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? |
| title_full_unstemmed | Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? |
| title_short | Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing? |
| title_sort | public private partnerships and water and sanitation infrastructure development in zimbabwe what determines financing |
| topic | Public–Private Partnerships Water and sanitation Infrastructure finance Zimbabwe |
| url | https://doi.org/10.1186/s40068-023-00295-7 |
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