Public-private partnerships are key to Africa’s development, but only when done right

AS the world grapples with inflation, deglobalisation, and the aftershocks of political populism — exemplified by US President Donald Trump’s sweeping tariffs — Africa faces a critical question: How do we develop with limited resources, mounting needs, and a rapidly growing population?

The answer may lie not in more foreign aid or debt but in reimagining how the public and private sectors work together.

Public-private partnerships (PPPs) offer an opportunity to leverage private sector capital, efficiency, and innovation to serve public interests — especially where states are financially or technically constrained. In Africa, where infrastructure gaps persist and development needs are urgent, PPPs can be transformative.

But they are not a silver bullet. When mismanaged, PPPs can lead to bloated costs, corruption, service inequality, and long-term public liabilities.

So, how do we harness the power of PPPs while learning from their failures?

Africa’s infrastructure funding gap is estimated at more than $100 billion (about R1.9 trillion) annually. Most governments simply do not have the budgetary space to fund roads, hospitals, power plants, and broadband networks at scale. At the same time, private investors are sitting on trillions of dollars in capital, looking for stable, long-term returns.

This is the promise of PPPs: governments define public needs and provide enabling policy frameworks, while private firms finance, build, and often operate projects under long-term agreements.

And when done right, they deliver powerful results. Let’s examine the successes.

Where PPPs Worked: 

North Africa – Morocco’s solar energy renaissance

Morocco’s Noor Ouarzazate Solar Complex, a partnership between the Moroccan government, ACWA Power (Saudi Arabia), and international funders, has turned the desert into a renewable energy hub. The $2bn PPP project is helping Morocco achieve energy independence and climate leadership.

West Africa (Senegal) – Dakar’s express train

Senegal launched one of West Africa’s most ambitious infrastructure PPPs in recent years with the Train Express Régional (TER) project in Dakar. This high-speed commuter rail project was developed through a public-private partnership to connect the capital city with Blaise Diagne International Airport, easing congestion and promoting regional integration.

The project cost over €1bn and involved multiple partners: the Senegalese government, French companies like Engie and Thales, Turkish construction firm Yapi Merkezi, and international lenders, including the African Development Bank and the Islamic Development Bank.

The train is designed to carry 115 000 passengers per day, reduce urban congestion, and drive economic activity around key transport hubs. It also marks a leap toward low-emissions, modern mass transit infrastructure in West Africa.

East Africa – Kenya’s Nairobi expressway

The $600 million Nairobi Expressway, delivered through a build-operate-transfer model by China Road and Bridge Corporation, has slashed travel times and boosted economic activity. It’s a prime example of PPPs unlocking mobility and logistics potential.

Southern Africa – South Africa’s energy turnaround

Through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), South Africa has attracted $20bn in private investment, diversifying its energy grid with over 6000MW of renewable power. The transparent bidding model and clear legal frameworks were key to success.

Southern Africa – Eswatini's MR3 Nhlangano-Sicunusa road project

In collaboration with the Eswatini government, Inyatsi Construction successfully completed the MR3 Nhlangano-Sicunusa Road, a 42.5km project valued at E647m. This first-world standard infrastructure enhances connectivity between Nhlangano and Sicunusa, facilitating trade and movement. The project also had a substantial socio-economic impact, employing over 800 locals and benefiting more than 8 000 individuals in surrounding communities.

Southern Africa – South Africa and Eswatini’s Maguga Dam project

The Maguga Dam, completed in 2001, stands as a testament to effective cross-border collaboration. This joint initiative between the governments of Eswatini and South Africa aimed to enhance water management and irrigation capabilities. The dam supports agricultural activities, particularly benefiting small-scale farmers, and contributes to hydroelectric power generation. The project received commendations for engineering excellence and has played a pivotal role in regional water resource management.

But PPPs are not always a success story

Not every PPP ends well. In fact, some have failed spectacularly — undermining public trust and leaving governments to pick up the pieces. Here are a few cautionary tales:

Nigeria – Lagos Lekki-Epe expressway

Initially hailed as a PPP breakthrough, the Lekki-Epe Expressway in Lagos was built by the Lekki Concession Company (LCC), which would recoup costs through tolling. However, backlash from residents over unaffordable tolls and opaque financing eventually forced the Lagos State Government to buy out the private partner — at significant public cost.

Tanzania – Dar es Salaam water supply contract collapse

In 2003, Tanzania signed a PPP with City Water, a UK-German-Tanzanian consortium, to improve Dar es Salaam’s water supply. Within two years, the contract was cancelled due to non-performance, leading to international arbitration.

Uganda – UMEME electricity concession controversy

Uganda’s privatisation of its electricity distribution company UMEME via a PPP initially aimed to boost efficiency. However, over time, public dissatisfaction grew due to high electricity tariffs, opaque billing, and perceptions of profiteering.

The government has since been under pressure to renegotiate or revoke the concession.

Africa’s challenges are too vast for governments to tackle alone — and too urgent to ignore. Public-private partnerships are not a magic wand, but when thoughtfully structured and honestly executed, they can be powerful levers for development.

We must avoid repeating the mistakes of the past, where private gain came at public cost. The new era of PPPs must be rooted in shared value, transparency, and long-term impact.

If we build together, accountably and inclusively, we can rise together.

The dream of a prosperous, self-reliant Africa will not be outsourced. It will be co-built by the public and private sectors, hand in hand.