Africa continues to face a massive infrastructure gap that impedes economic activity and progressive GDP output on the continent. The African Development Bank (AfDB) estimates the continent has an annual infrastructure deficit in excess of US$90 billion. Therefore, private sector developers have a critical role to play in the development agenda on the continent. However, this will require active participation from all relevant stakeholders: private sector developers, governments, financiers and other relevant parties. The pivotal role played by the private sector project development industry across African is yet to be fully realised, perpetuating an environment which impedes the continent’s true GDP growth potential. We, at Africa Investor (Ai), believe that much of the narrative and public sector interventions around PPPs (private public partnerships) has traditionally focused on the leadership role of the public sector (or lack of adequate capacity) in partnering with the private sector to execute key infrastructure projects.
Emphasis has been placed on the critical role that the private sector plays in driving infrastructure project development and ensuring the investability of infrastructure projects. The fundamental role the private sector plays in the project development space has largely been relegated to secondary status. As the lifeblood of the economy, the private sector is inextricably vital to the infrastructure project development agenda in Africa. Dialogue around bolstering relationships between private sector developers and investors should be enhanced, with the aim of creating an environment in which African project developers can thrive by embarking on more larger-scale projects (in excess of US$50 million).
