Guidelines for implementing PPPs in SADC

The document examines the role of public-private partnerships (PPPs) in addressing infrastructure deficits in the SADC region, contrasting them with privatisation and traditional procurement. It identifies key barriers to PPP success in Africa, including political interference, lack of dedicated PPP units, and the risks of hidden debt through government guarantees. The author recommends establishing independent PPP units, formalising public consultation processes, and conducting rigorous due diligence on partners to ensure transparency and value for money in sectors such as energy, transport, and water.

• PPPs differ from privatisation primarily in ownership, structure, and risk; while privatisation involves the full transfer of ownership to the private sector, in a PPP, the "public agency retains ownership of the asset or enterprise".
• The SADC region exhibits varying levels of administrative maturity regarding PPPs, with South Africa identified as the "obvious leader" and several other member countries lacking a dedicated PPP unit.
• Infrastructure gaps in sub-Saharan Africa have significant economic costs, with World Bank estimates suggesting poor infrastructure reduces economic growth by 2% and business productivity by up to 40%.
• Case studies in SADC reveal specific challenges: Tanzania has experienced "general distrust between the government and private sector" and political interference, while South Africa's Mbombela water concession has suffered from weak contract monitoring and bill collections falling "far below contractual projections".
• The author argues that the absence of dedicated PPP units leads to many of the region's project failures, recommending that SADC members establish "politically independent PPP units" to ensure transparent procurement and regulatory frameworks.
• Public consultation is often neglected or viewed as a "nuisance" in SADC PPPs; the document recommends making public engagement a mandatory process throughout the project cycle, specifically including women, youth, and minorities.
• PPPs can create a "debt trap" because they are often more expensive than traditional borrowing, and government guarantees can create contingent liabilities that are "hidden from public view" and not included in official state debt figures.

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} }