cranes infront of a blue sky during sunset

Successful PPP projects key to infrastructure development in Africa

Public Private Partnership (PPP) between governments and private organisations are essential in aiding economic growth through infrastructure development. Although historically slow, recent advancements in PPP projects across Africa is evident, driven by governments’ aims to boost economies through enhancing infrastructure. On a local level, infrastructure provides communities with affordable housing and links them to business and job centres while supplying these communities with access to clean water, electricity, and internet services. Nationally and internationally transport infrastructure connects economic hubs together which enables economic growth and creates opportunities for citizens.

In Africa, governments are not solely responsible for infrastructure development, which can include anything from transport systems to housing and retail centres. Private companies such as property developers can play a key role in developing property infrastructure, making it important for governments and private companies to work together on infrastructure projects that can address economic challenges facing communities and create opportunities.

Addressing infrastructure shortfalls

One way governments and private companies can work together is by entering into Public Private Partnerships (PPP). PPPs are defined as contracts between public sector and private parties where the private party performs a function that is usually provided by the public sector or government. Depending on how the PPP is structured, the private party covers most of the costs of the project and government can take ownership of the project assets after a concession period. In this way, governments and private parties across Africa can work together to provide much needed infrastructure to communities that need it.

Unfortunately, PPPs across Africa have been put on the back burner despite the key role they can play in providing infrastructure. Francois Viljoen, a Director at Cresco notes that: “Due to a drop in government spending, PPP projects across Africa have been quiet over the past few years despite an increasing demand for infrastructure and services. Now, more than ever, public private integration is vital.”

Spotlight on PPPs

In the beginning of this year Botswana released a list of 16 PPP projects they will be focusing on going forward to try and reinvigorate the economy. Cresco is currently assisting with the Tshele Hills Fuel Depot Project by providing the PPP feasibility study and procurement. “We are perfectly placed to provide a range of advice on PPP projects across Africa, having worked on nearly 300 projects across various industries, including the North-South Corridor project that spans several countries including Botswana, DRC, South Africa, Swaziland, Zambia, and Zimbabwe. Our experienced team is well suited to assist with this project,” Viljoen avers.

As PPP experts with significant experience across Africa we are able to deliver unparalleled advisory services to ensure the success of your PPP project and Enable Growth across the continent. Get in touch today: