Public Private Partnerships the key to better infrastructure in Africa

Africa must find ways of
creating sustainable Public
Private Partnerships (PPPs)
and also making them work
– especially when it comes
to transport infrastructure
projects, says Peter Copley,
transport specialist for
the Development Bank of
Southern Africa.
“Africa’s infrastructure
need is accelerating due to
economic growth and historic
and current underinvestment.
The current need is estimated
at some US$93 billion per
annum – twice the figure
determined only nine
years ago.”
Copley said energy made
up some 50% of the
requirement, with transport
second at 25% followed by
water and sanitation.
“The importance of PPPs
is growing all the time as the
governments of the world can
no longer afford to provide
the necessary infrastructure
unaided. We do, however,
need committed champions
from both the private and the
public sector who are willing
to become involved in projects
long term.”
Copley said especially in
the transport sector it was
important for role-players to
start working harder at making
themselves look attractive and
finding ways of justifying
investment in transport
programmes and projects.
“The private sector is
renowned for putting its
money into the power and
telecoms sectors. A variety of
reasons exist for this including
the fact that these sectors have
effective billing systems in
place so the revenue streams
come straight away. It is not
easy to develop PPPs in road
and rail – and that is not just
an African issue, but also an
international phenomenon.”
But, said Copley, it was
imperative for Africa to
lobby for private partnerships
to ensure that transport
infrastructure gets its fair
share of the pie.
“If we want to see PPPs
really work it is important to
make sure the projects and
programmes will have a rate of
return – that is what investors
want to see.”