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Africa

When elephants fight, it is the grass that suffers

Mark Moseley's picture


Photo: shplendid | Flickr Creative Commons

Talk of trade tariffs and heightened geopolitical tensions are dominating news headlines recently. As developed economies consider escalating protectionist policies, it’s easy to forget about the situation many emerging markets face.

As outlined in the World Bank’s Global Economic Prospects report released in June this year, protectionist policies would affect emerging market and developing economies (EMDEs) more severely than advanced economies. And this is at a time where increased investment and spending in EMDEs, including in infrastructure, is sorely needed.

Kenya's PPP deal information: now open to the public!

Adetoun Adetona's picture



The Kenyan government took a big step in improving its business environment with the launch of the Public-Private Partnership (PPP) Disclosure Portal, an online tool that makes all non-confidential information relating to PPP contracts available to the public. The portal, which went live in June, is the result of the government’s work with the World Bank Group to improve transparency and accountability in PPPs since 2016.

As important as the act itself is the timing of the launch. The government recently announced its commitment to eradicate corruption in the public service. The government launched the PPP disclosure portal shortly thereafter—at a time when citizens in Africa are increasingly demanding answers, engaging their governments, and increasing scrutiny in public spending. This reflects positive movement and will hopefully fuel a virtuous cycle where citizens increasingly trust that the government cares about their views, their needs, and their hard-earned money.

Alavancar as PPP em Moçambique para aumentar à conservação e promover o desenvolvimento económico

Elisson Wright's picture


THPStock | Shutterstock

Ao longo das últimas décadas, as Parcerias Público Privadas (PPP) têm sido utilizadas para criar transporte, energia, telecomunicação e diversas outras infraestructuras em todo o mundo. Cadeias de valor foram estabelecidas para fomentar o crescimento nesses sectores e criar experiências significativas. Um sector amplamente ignorado para fins de investimentos em PPP é o sector do turismo.

Em 2016, viagens e turismo movimentaram USD 7,6 biliões (10,2% do produto interno bruto global) e geraram cerca de 292 milhões de empregos em todo o mundo. O sector do turismo é também aquele que mais contribui para financiar áreas protegidas, como por exemplo os parques nacionais.

Leveraging PPPs in Mozambique to scale conservation and promote economic development

Elisson Wright's picture


THPStock | Shutterstock

Over the last few decades, Public-Private-Partnerships (PPPs) have been used to build transportation, energy, telecommunications, and other infrastructure throughout the world. Value chains were established to foster growth in these sectors and significant experiences gained. A sector largely overlooked for PPP investments is the tourism sector.

In 2016, travel and tourism generated $7.6 trillion (10.2 percent of global gross domestic product) and an estimated 292 million jobs globally. The tourism sector is also the largest market-based contributor to finance protected areas such as national parks. In some countries, tourism depends almost exclusively on natural systems, often with wildlife as the primary attraction.

More and better infrastructure services: Let’s look at governance; financing will follow

Abha Joshi-Ghani and Ian Hawkesworth's picture


Photo: AhmadArdity | Pixabay 

There are many reasons why infrastructure projects often fail to materialize, meet their timeframe, budget, or service delivery objectives. Important examples include weak and insufficient planning and assessment of affordability as well as uncertainty over the rules of the game. 

These issues severely constrain the ability of governments to mobilize finance to deliver key services that help achieve the Sustainable Development Goals (SDGs). The World Bank estimates that achieving the SDGs would require some $4.5 trillion in public and private investment by 2030.

In light of the financing requirements for the SDGs, the World Bank has developed the Maximizing Finance for Development (MFD) approach to help governments and other stakeholders crowd in private sector solutions while optimizing the use of scarce public resources. The success of the MFD initiative will depend in large measure on whether good infrastructure governance practices and tools are adopted.
 
The World Bank Group and the African Development Bank, with support from key development partners, have organized the second Infrastructure Governance Roundtable, to be held in Abidjan, Cote d’Ivoire, June 21-22, to foster a robust dialogue on how best to improve infrastructure governance practices to create sustainable infrastructure, and to assist with building capacity in this area.

Yes they can: SMEs filling the infrastructure gap in fragile countries

Yolanda Tayler's picture


Photo: Trocaire | Flickr Creative Commons

In war-torn post-1991 Somalia, running water was a scarce commodity, to the misfortune of millions of people. Members of local communities rose to the occasion, “pooling” consortia of companies to fill the gap in water provisions. Eight public-private partnerships (PPPs) were formed through these consortia, benefiting 70,000 people in the Puntland and Somaliland regions of the country.  

As demonstrated in the Somalia case, infrastructure needs are substantial in fragility, conflict and violence-affected (FCV) contexts—especially for recovery and reconstruction in war-torn areas. Yet often there is insufficient public sector funding to address such needs, compounded by lack of interest on the part of large private sector firms, who may not even be on the scene. In such FCV contexts, small and medium enterprises (SMEs), making up a substantial share of the private sector, may be critical to filling the infrastructure services gap.

Three criteria to better classify PPPs in Africa

Stéphane July's picture



It is broadly understood that public-private partnerships (PPP) are a procurement tool that encompass design, financing, construction and long-term operation of a public infrastructure by the private sector. They can be cost-effective thanks to adequate risk transfer and performance criteria, and help bridge Africa’s large infrastructure gap in many sectors.

However, the understanding of PPPs often gets blurry, in Africa in particular, when different structures are considered that vary according to risk allocation and payment mechanism.

The power of sunlight: incentivizing private investment in solar PV

Susanne Foerster's picture


Photo: Pixabay Creative Commons

Solar power is experiencing a surge in popularity across the globe. It prevents carbon emissions, helps diversify the power generation mix, reduces dependence on fossil fuels, and can increase off-grid energy access.
 
With falling costs of solar photovoltaic (PV) technology, advancing storage technology, and grid integration, prices for solar PV electricity have been falling rapidly around the world and solar is now in many countries price competitive with traditional energy sources and has become particularly attractive for developing countries.
 

Kigali Water: Lessons from one of sub-Saharan Africa’s first water PPPs

Emilio Cattaneo's picture
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Photo: People Image Studio | Shutterstock

This World Water Day, the Private Infrastructure Development Group (PIDG) is celebrating the success of the Kigali Bulk Water Project in Rwanda’s capital.
 
The large-scale water treatment plant, due for completion in 2020, will produce 40 megaliters of clean water per day, equivalent to one-third of Kigali's total supply. Water will be drawn from the Nyabarongo River to be treated before distributing a clean supply to up to 500,000 domestic, commercial, and industrial customers. Kigali Water is one of the first water projects to be developed using a public-private partnership (PPP) model in sub-Saharan Africa.

Behold the White Knights! New research on institutional investor participation in financing EMDE infrastructure

Abha Joshi-Ghani's picture


Photo: Grzegorz Zdanowski / Pexels Creative Commons

Some regard institutional investors—with their deep pockets—as the white knights filling the huge investment gaps in infrastructure development in emerging markets and developing economies (EMDEs). The IMF estimates that some 100 trillion dollars are held by pension funds, sovereign wealth funds, mutual funds, and other institutional investors. Unquestionably, the long-term nature of their liabilities matches the long-term financing requirements of infrastructure projects. So, it’s no surprise that institutional investors are seen as the white knights of infrastructure finance.

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