Working Together Assessing Public–Private Partnerships in Africa

This report by the South African Institute of International Affairs (SAIIA) evaluates the implementation of public-private partnerships (PPPs) in Africa, analyzing their potential to address infrastructure and service backlogs. Through eight case studies across sectors including transport, telecommunications, water, power, and eco-tourism, the document argues that while PPPs can offer efficiency gains and fiscal benefits, they are not a 'magic bullet' and are susceptible to the same failures as full privatisation, such as corruption, poor pricing, and lack of transparency. The report provides a comprehensive set of recommendations for African governments to improve regulatory frameworks, conduct thorough feasibility studies, and build institutional capacity to ensure PPPs deliver value for money and social benefit.

• The record of public-private partnerships (PPPs) in Africa over the last 15 years is mixed, and they should not be viewed as a universal solution for infrastructure and service backlogs.
• PPPs have demonstrated varying levels of success across different sectors, generally performing better in ports, telecommunications, transport, and eco-tourism than in power and water.
• The N4 toll road project between South Africa and Mozambique illustrated the viability of PPPs in the road sector when users are able to pay, utilizing cross-subsidisation from affluent South African users to reduce payment risks for Mozambican users.
• In the telecommunications sector, specifically in Uganda, the government successfully used competition and a clear regulatory framework to expand access, using a Rural Communications Development Fund to subsidize underserved areas.
• Water and sanitation PPPs have faced significant challenges, as seen in the Dolphin Coast/Ilembe District Municipality case, where a lack of accurate feasibility data and poor policy clarity on free basic services led to contract adjustments and price hikes for consumers.
• The power sector has been plagued by 'public-private partnership at its worst', exemplified by Tanzania's power purchasing agreement with Independent Power Tanzania Limited (IPTL), which suffered from a lack of feasibility studies, stakeholder consultation, and evidence of corruption.
• Corruption remains a critical barrier to successful PPPs, with the report noting that the complexity of these contracts provides more opportunities for manipulation than simple tenders.
• Pricing is a fundamental driver of both political stability and commercial viability; governments must manage the transition from state-subsidised services to market-based pricing to avoid public backlash.
• Effective risk management requires thorough feasibility studies and the use of a Public Sector Comparator (PSC) model to compare the costs of public versus private provision.
• South Africa has integrated Black Economic Empowerment (BEE) into its PPP framework through a 'BEE Balanced Scorecard' to ensure that partnerships contribute to local economic empowerment.
• There is a significant capacity gap in African governments regarding the ability to plan, negotiate, and monitor PPPs, suggesting that states should start with small-scale projects to build expertise.

APA

Farlam, P. (2005). Working Together Assessing Public–Private Partnerships in Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/03/Nepad-Policy-Focus-Assessing-Public-Private-Partnerships-Africa-1.pdf

Chicago

Farlam, Peter. Working Together Assessing Public–Private Partnerships in Africa. South African Institute of International Affairs, 2005. https://saiia.org.za/wp-content/uploads/2008/03/Nepad-Policy-Focus-Assessing-Public-Private-Partnerships-Africa-1.pdf.

Wikipedia

{{cite report |last1=Farlam |first1=Peter |title=Working Together Assessing Public–Private Partnerships in Africa |publisher=South African Institute of International Affairs |date=February 2005 |url=https://saiia.org.za/wp-content/uploads/2008/03/Nepad-Policy-Focus-Assessing-Public-Private-Partnerships-Africa-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{farlam2005working, author = {Farlam, Peter}, title = {{Working Together Assessing Public–Private Partnerships in Africa}}, institution = {South African Institute of International Affairs}, year = {2005}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2008/03/Nepad-Policy-Focus-Assessing-Public-Private-Partnerships-Africa-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }