Guidelines for implementing PPPs in SADC

This policy briefing by the South African Institute of International Affairs provides guidelines for implementing public-private partnerships (PPPs) within the Southern African Development Community (SADC). It distinguishes PPPs from privatisation, analyses the regional infrastructure landscape, and recommends the establishment of independent PPP units and formalised public consultation frameworks to attract investment and ensure sustainable project delivery.

• The author recommends that SADC member states establish politically independent and functioning PPP units to ensure transparent procurement and attract foreign investors. These units should provide policy guidance, technical support, promotion, and investment management to ensure value for money and align PPPs with national budget processes.
• Public consultation is identified as a weak point in SADC PPP implementation. The document suggests that public engagement should be a mandatory, formalised part of the project cycle, utilizing diversified methods like online surveys and public forums, and specifically including marginalized groups such as women, youth, and the elderly.
• PPPs differ from privatisation primarily in ownership, structure, and risk. In a PPP, the public agency retains ownership of the asset and oversight of operations, whereas privatisation involves the full transfer of ownership to the private sector. Risk in PPPs is typically shared based on which partner is better equipped to manage it, while in privatisation, the private owner assumes all risk.
• The energy, transport, and water sectors are highlighted as critical for SADC's development and offer lucrative opportunities. However, success in these sectors requires understanding the local political climate, as projects are often expected to deliver social benefits such as job creation, skills transfer, and the inclusion of local businesses.
• The document warns that PPPs can be more expensive than traditional borrowing, potentially costing more than double bank loans or bond issuances. This is particularly true for 'availability PPPs' or those with government guarantees, which can create hidden contingent liabilities that are not reflected in official state debt figures.
• Infrastructure deficits in sub-Saharan Africa are estimated by the World Bank to reduce economic growth by 2% and business productivity by up to 40%. To combat this, the African Union uses Agenda 2063 and the Programme for Infrastructure Development in Africa (PIDA) to prioritize cross-border infrastructure in energy, transport, water, and ICT.

APA

KHATLELI, D. N. (2020). Guidelines for implementing PPPs in SADC. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2020/02/Policy-Briefing-193-Khatleli.pdf

Chicago

KHATLELI, DR NTHATISI. Guidelines for implementing PPPs in SADC. South African Institute of International Affairs, 2020. https://saiia.org.za/wp-content/uploads/2020/02/Policy-Briefing-193-Khatleli.pdf.

Wikipedia

{{cite report |last1=KHATLELI |first1=DR NTHATISI |title=Guidelines for implementing PPPs in SADC |publisher=South African Institute of International Affairs |date=January 2020 |url=https://saiia.org.za/wp-content/uploads/2020/02/Policy-Briefing-193-Khatleli.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{khatleli2020guidelines, author = {KHATLELI, DR NTHATISI}, title = {{Guidelines for implementing PPPs in SADC}}, institution = {South African Institute of International Affairs}, year = {2020}, month = jan, url = {https://saiia.org.za/wp-content/uploads/2020/02/Policy-Briefing-193-Khatleli.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }