Peace for development of the African continent

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Public-Private Partnerships

African governments are embracing public-private partnerships (PPPs) to radically improve their infrastructure networks. This development finance model is premised on the notion that state shares risk and responsibility with private firms but ultimately retains control of the infrastructure. In theory, PPPs may have the potential to solve sub-Saharan Africa’s profound infrastructure and service backlogs. PPPs potentially bring the efficiency of business to public service delivery and avoid the politically contentious aspects of full privatisation. However, private sector is not always more efficient and the service provision is often more expensive to the consumer. GLAFAD is of the view that governments must fundamentally improve their systems for dealing with the private sector to realise the efficiency and effectiveness gains that these partnerships. We believe that with the correct regulatory framework and strong political commitment, PPPs offer value for money to governments and good opportunities for investors. However, the cost pushed to the citizens should not result in infringement of peoples rights.

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