2023-11-16 23:03:10
+++From the APS special correspondent, Adama Diouf Ly+++
Addis Ababa, November 16 (APS) – The public-private partnership, which has become for more than twenty years an alternative solution allowing African States to have investments for the financing of infrastructure, however requires “a lot “vigilance and boldness on the part of those in power vis-à-vis private parties during very technical negotiations and complicated contracts,” experts believe.
”This is not an easy procedure to do, especially in the field of energy and infrastructure because the institutional capacity is lacking in most states to carry out negotiations successfully,” said the former director general. of the Ethiopian Energy Authority, Getahun Moges,
He was speaking at a panel held Thursday at the United Nations Conference Center in Addis Ababa. ”Public-private partnerships to catalyze infrastructure development and innovative financing for industrialization in Africa” is the theme of this panel organized as part of the African Economic Conference (AEC) 2023.
For the energy expert, the pace of implementation of public-private partnerships is very slow. The complex procedures do not favor private sector investments with a gap of nearly $200 billion for infrastructure financing in Africa, he noted.
He shared the experience of Ethiopia which is now relying on PPP for infrastructure development, but also on the renewable energy sector, notably solar, geothermal and hydraulic energy.
”It is necessary to have autonomous institutions for PPPs with quality human resources to negotiate contracts without the interference of politicians for the interest of the populations and sustainable development,” he noted.
Risk sharing is decisive in any public partnership with a careful assessment between the two parties, said Eniye Ogbebor, legal expert, coordinator of the World Association of PPP Units and Professionals (WAPPP-Africa).
For the panelist, PPP projects must above all ”meet the continent’s needs for water, electricity, education and transport with repercussions on sustainable development”.
Review regulatory frameworks
This is why she suggested the review of regulatory frameworks to reduce the units in charge of PPPs and opt for independent entities which promote an environment favorable to investments for the benefit of populations.
The idea, explains Eniye Ogdebor, consists of moving towards a solid capacity building program for human capital capable of carrying out negotiations for the benefit of the populations.
To justify the holding of this panel, the moderator of the session Robert Lisinge, Acting Director, Division of Private Sector Development and Finance at the United Nations Economic Commission for Africa (UNECA), noted ” the inadequacy of infrastructure in the electricity, water and transport sectors, which constitutes a major obstacle to large-scale industrialization”.
”The imperatives of sustainable industrial development in Africa” is the theme of the 18th African Economic Conference.
The African Development Bank, which initiated the conference in 2006, estimates that annual needs for infrastructure development are between $130 billion and $170 billion, leaving a substantial financing gap of $68 billion to $108 billion.
This deficit affects millions of people, depriving them of essential services such as drinking water, sanitation and electricity, while road networks remain limited, according to Mr. Lisinge.
The moderator recalled that, ”traditionally, African governments and international partners like China have been the main investors in infrastructure”.
However, noted Robert Lisinge, due to financial constraints, it is increasingly necessary to explore public-private partnerships (PPP).
Thus, PPPs can leverage private sector investment, technology and expertise, thereby improving the efficiency and cost-effectiveness of service delivery.
ADL/ASG/OID
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