Business + Finance

How African Governments Can Use Private Companies for Improved Project Delivery

Strong institutions and the elimination of corruption will lead to better delivery of PPP projects in Africa.

The enormous infrastructure gap crippling human and economic development in Sub-Saharan Africa can be addressed through a collaboration of the private and public sectors—popularly known as Public-Private Partnerships (PPP). The recently completed World Bank MOOC (Massive Open Online Course) on making PPPs deliver better services was highly insightful. The participants were able to access the best resources on PPP design, structure, procurement, operation, contract management and transfer.

As a participant with a special focus on Sub-Saharan African, I focused on the challenges of doing PPP projects in Africa and how these challenges can be ameliorated. In no particular order, the difficulties that a lot of countries face in delivering PPP projects include abrupt disclosure of unforeseen costs, project non-viability and the lack of value for money. These often lead to project abandonment, contract renegotiation and citizen discontent.

It is time for African governments to collaborate more intensely with the private sector and deliver essential services.

By the second week of the World Bank MOOC course, it was evident that the most crucial success factor in setting up any PPP campaign is in the project planning phase—the time a project is proofed for financial viability to ensure value for money. Challenges notwithstanding, PPPs remain a means of bridging the lack of relevant infrastructure in Sub-Saharan African countries. To bridge this infrastructure gap, resource-thin countries must do two things: establish a strong institution to structure and sanction PPP projects, and eradicate corruption in the delivery process of PPPs.

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