Government engages Africa50

In a strategic move to create fiscal space in the 2024 National Budget, the Government has engaged Africa50, a pan African infrastructure investment platform, to initiate an asset recycling programme to unlock the value of existing government infrastructure projects and generate funds for high priority development initiatives.

Asset Recycling is an innovative way for governments to unlock capital currently tied down in state owned infrastructure assets by presenting them to credible private institutions that will pay a fair price to the government for the right to manage and operate the assets over a pre determined period under a concession framework.

Under the initiative, three airports have been identified for asset recycling under this programme, according to a report by the Treasury on sovereign debt.

These are Robert Gabriel Mugabe International Airport, Victoria Falls International Airport, and Joshua M. Nkomo International Airport. These airports represent valuable assets with the potential to attract private sector investment and generate significant revenue streams.

In addition to airport asset recycling, the refinancing of the Harare Masvingo Beitbridge Highway has also been earmarked for this program.

This strategic road corridor is considered a low hanging fruit for asset recycling, as it is currently funded from the national budget.

According to the report, the asset recycling process will enable the government to channel the resources mobilized from this initiative towards other critical infrastructure projects that are essential for sustainable economic development. ebusinessweekly