Framework Model for Financing Sustainable Water and Sanitation Infrastructure in Zimbabwe

Abstract

Financing frameworks for Public Private Partnerships (PPPs) are lacking in developing countries. This study develops and recommends a financing framework for water and sanitation PPP infrastructure projects in Zimbabwe. The framework model integrates the Public Private Partnership models, sources of finance for water and sanitation PPPs, and the drivers of water and sanitation PPP finance. Both the public and private sources of finance are instrumental for financing water and sanitation PPP projects. Tobit econometric models are applied on data collected from both international and domestic data banks. The time frame for the analysis is a 25-year period running from 1996 ending 2021. Capital market variables, bank market development and economic affluence drive the financing of water and sanitation Public Private Partnership infrastructure projects in Zimbabwe. The study recommends the application of the developed framework in the water and sanitation Public Private Partnership infrastructure financing policy, for developing countries.