Last Updated:
17 Apr 2021

Towards Better Infrastructure: Conditions, Constraints, and Opportunities in Financing Public-Private Partnerships

Evidence from Cameroon, Côte d’Ivoire, Ghana, Kenya, Nigeria, and Senegal Author: Riham Shendy, Zachary Kaplan, Peter Mousley

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 finance required to raise infrastructure in Sub Saharan Africa (SSA) to a reasonable level within the next decade is estimated at US$93 billion per year, with two-thirds of this amount needed for capital expenditures. With the existing spending on infrastructure estimated at US$45 billion per annum and after accounting for potential efficiency gains that could amount to US$17 billion, Africa’s infrastructure funding gap remains around US$31 billion a year. One approach to address this challenge is to facilitate the increase of private provision of public infrastructure services through public-private partnerships (PPPs). This approach, which is a relatively new arrangement in SSA, is multifaceted and requires strong consensus and collaboration across both public and private sectors.