Govt must partner banks to improve infrastructure
GOVERNMENT remains the largest participant in infrastructure growth initiatives as it strives to develop the economic base.
However, there is a need for strong support from the private sector, particularly the banking industry, to lift some of the strain off government, particularly in the current economic climate.
In recognition of this, banks should partner their largest shareholders to finance huge developmental projects in the country.
Financing large projects requires in-depth analysis of the political, economic, social, technological, ecological and legal environment of a project to have a full understanding of the viability of the project and its socioeconomic benefit to the nation.
Commercial banks play an important role in financing such development projects, providing long-term finance to address challenges such as load-shedding, and promoting industry jointly with public institutions.
The banks should have a significant impact on the country’s infrastructural development and the associated industries linked to that development, which drive socio-economic development.
In Zambia, for example, over the last 60 years, Stanbic Bank has supported investments in massive infrastructure development spanning a wide range of sectors that include energy, agriculture, housing, mining, ICT and retail.
This has been achieved by introducing banking solutions specifically created to support infrastructure investment by both small and large industry players.
Financial institutions should believe in the country’s growth potential and should be committed to partnering the government and other stakeholders in realising this potential by providing fresh solutions to the country’s needs in terms of financing developmental projects.
For our country to realise its full development potential, there is need for more investment in economically relevant infrastructure.
More private sector firms need to step up to the challenge and play their part in the country’s development agenda because this is our home, we must drive its growth.
Gwizhikiti