Working Together Assessing Public–Private Partnerships in Africa

The report examines the record of public-private partnerships (PPPs) in Africa, arguing that while they can address infrastructure backlogs, they are not a 'magic bullet' and are prone to the same failures as privatisation, including corruption and high consumer costs. Through eight case studies in transport, prisons, telecommunications, water, power, and eco-tourism, the document highlights that success depends on thorough feasibility studies, strong political commitment, and effective regulatory frameworks. Key failures are attributed to a lack of transparency, poor risk management, and unrealistic design specifications. The report recommends that African governments build institutional capacity, implement integrity pacts to combat graft, and adopt a phased approach by starting with smaller projects.

• PPPs in Africa have a mixed record over the last 15 years and should not be viewed as a universal solution for infrastructure and service gaps.
• The N4 toll road between South Africa and Mozambique demonstrated that PPPs are viable in the road sector when users are able to pay, utilizing cross-subsidisation to manage risks in poorer areas.
• The Maputo Port concession increased efficiency and handling volumes from 4.3 million tonnes in 2002 to 5.54 million tonnes in 2004.
• South African prison PPPs provided higher quality facilities than public prisons, but costs were inflated by overly high design specifications and a lack of initial affordability studies.
• Uganda successfully expanded telecommunications access by using competition and a regulatory framework that included financial incentives and subsidies for rural coverage.
• Water concessions at the municipal level, such as the Dolphin Coast project in South Africa, often struggle with commercial viability, high non-payment rates, and the inability of small municipalities to negotiate effectively with multinationals.
• Multi-utility provision in Gabon was relatively successful due to strong political commitment and the ability to cross-subsidise the water sector using electricity revenues.
• The power purchasing agreement with Independent Power Tanzania Limited (IPTL) is cited as a failure due to corruption, lack of feasibility studies, and the purchase of unnecessary capacity at inflated prices.
• Eco-tourism PPPs, such as the Nature's Group concession in Kruger National Park, can increase profits and service quality but may face staff resistance and risks from inexperienced private partners.
• Corruption remains a critical barrier to successful PPPs in Africa, often manifesting as bribes for concessions or the awarding of contracts to political cronies.

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} }