In the last few years, Zambia has experienced economic success as evidenced by its progression from a low to middle income country. This has in turn resulted in an increase in business activity in various sectors of the economy. There has also been significant growth in the Zambian project finance market, which has largely been focused on the mining sector. However, other sectors such as hydro-power and infrastructure have recently begun to attract project financing, particularly following the enactment of the Public-Private Partnership Act (the 'PPP Act'), which seeks to attract private sector investment for infrastructure development. Project financing has been the most common way through which PPPs have been formed, under the Public-Private Partnership Unit within the Ministry of Finance and National Planning, which has been tasked to implement the policy goals set out under the PPP Act.
It's been an increasingly frenetic two years for Zambia's leading
lawyers: "We've seen a significant amount of private investment suddenly
flowing into the country and this is expected to keep growing, as US
funds start to show an interest in capital markets and begin to invest
Lawyers are beginning to find themselves with mandates piling up to
advise potential investors on the regulatory framework of what is still a
little understood legal market....