NEXUS BETWEEN PUBLIC SECTOR ACCOUNTING AND PUBLIC INFRASTRUCTURE FINANCING IN ZIMBABWE: PRIVATE SECTOR ACCOUNTABILITY EXPECTATIONS

Abstract

Zimbabwe is currently re-invigorating its public infrastructure, by rehabilitating major trunk roads, expanding international airports, expanding the electrical power generation facilities during the last decade. However, the major handicap has been limited financial resources, which resulted in delays in completion of infrastructure development projects. Therefore, there remains a significant gap in the financing required to upgrade the national infrastructure stock. Zimbabwe’s public infrastructure financing requires annual investments of about US$2 billion until the year 2032, of which the public sector consistently contributes about 20 percent annually. The study assessed the status and role of public sector accounting in attracting private sector investments into public infrastructure financing to augment public resources. The descriptive study was an inductive qualitative research that collected data through interviews and documentary analysis. Interview data saturation was achieved after conducting 15 interviews. Documents analysed included financial reports, public investment management guidelines and the Public Finance Management Act (Chapter 22:19). Findings revealed that public sector accounting reforms instituted by the Government of Zimbabwe including gazetting of Statutory Instrument 41 of 2019 which marked commencement of compulsory adoption of International Public Sector Accounting Standards (IPSAS) for all public sector entities in Zimbabwe. The expectation is to strengthen public sector accounting, disclosures, and accountability. This is expected to improve private sector confidence and investments into public private partnerships for public infrastructure development after closing the accountability expectation gap. The authors recommend skills development for efficient and smooth IPSAS adoption.