Toward Better Infrastructure : Conditions, Constraints, and Opportunities in Financing Public-Private Partnerships in Select African Countries

Abstract

Examining innovative ways to address
 Africa's infrastructure deficit is at the heart of this
 analysis. Africa's infrastructure stock and quality is
 among the least developed in the world, a challenge that
 significantly hinders economic development. The study is
 structured around the most inhibiting constraints to
 developing PPPs, as shared by all six countries. Section one
 provides a brief background of the infrastructure needs in
 the sample countries and outlines the current scope of
 Public-Private Partnership (PPP) transactions; section two
 examines the sources of financing for PPPs domestic and
 foreign with a particular focus on domestic sources; section
 three explores the supporting legislative, regulatory, and
 institutional environment for PPPs; section four addresses
 issues connected with the importance of developing a sound
 pipeline of PPP projects; and section five tackles the
 importance of managing the increased government fiscal
 commitments that are commonly coupled with PPPs. Section six
 outlines medium-term options for PPP financing. Finally,
 section seven puts forth policy recommendations intended to
 assist in overcoming the challenges in building private
 sector confidence in the Sub-Saharan Africa (SSA)
 infrastructure market in order to attract greater levels of
 financing for private sector investment in core
 infrastructure services through PPPs.