Business
Public Private Partnerships: Sub-Saharan Africa’s Top 5 Opportunities
The Ghanaian legal and regulatory framework still has a long way to go, with the private sector too weak to support PPP. Nevertheless, a growing debt capital market will help ease that pain. Investors however remain worried by poor fee collection and cost overrun as seen in the power sector.
The government insists that a new PPP bill, apparently with increasing World Bank support, will address these current gaps in the process and other related problems. If the bill achieves all that the government promises, specifically in the sense of certainty, processes and rules, Ghana could become the second biggest PPP player in West Africa, only trailing Nigeria.
South Africa
South Africa may only be Africa’s 2nd largest economy now, but it remains a model for PPPs in sub-Saharan Africa. The Development Bank of South Africa, established more than 31 years ago, is wholly owned by the South African government and continues to finance and advise on infrastructure projects across southern Africa. The South African government had earlier estimated that infrastructure spending would reach ZAR1 trillion ($100 billion) by the time of the May election.
Yet a deficit remains, best characterized by the power shortfalls and load shedding during the recent months. A well-developed legal and regulatory system for PPPs should remain intact, despite private investor concerns in other sectors (especially mining). Estimates on how much South Africa requires in infrastructural spending over the next decade differ among analysts, but range from $4.5 billion to $8 billion. A continued national interest in renewable energy and addressing social infrastructural constraints (hospitals, affordable housing) also signify a continued bright future for PPPs in South Africa.
Source: Ventures Africa
