$791 Billion of PPP Opportunities in Africa
Africa has more than $791 billion of active projects utilizing Public-Private-Partnerships. Forty-six per cent or $369 billion is currently under construction.
As wave after wave of COVID-19 ravages global economies, poorer countries are adversely affected than their developed peers. Unfortunately, Africa has some of the poorest countries where most of the population earns less than the international poverty line of a dollar ninety a day.
COVID-19 restrictions result in long-standing businesses collapsing, and in a continent where small traders are the core of the economy, many lost their only means of generating an income. Less trade equals less revenue for government coffers. With the added expense of medical services and keeping government employees paid, coffers are running empty at an alarming pace. Thirteen African countries’ debt to gross domestic product (GDP) is more than seventy per cent.
From this point of view, Public-Private-Partnerships (PPPs) will likely become an essential means to fund critical infrastructure projects across Africa.
At the moment, Africa has $791 billion of projects developed on a PPP basis. Of the $791 billion, forty-six per cent, or $369 billion, is currently under construction. South Africa is leading the continent with 10.8 per cent of the continents’ PPP projects. In second place is Kenya followed by Egypt with 10.3 and 8.5 per cent, respectively.
The energy sector makes the most use of PPPs, with 44.3 per cent of the PPP market. Transport and oil and gas take second and third place with 18.7 and 15.0 per cent, respectively. The African Development Bank is the lead funder of PPP projects with 9.6 per cent of the market, followed by the World Bank Group and the Development Bank of Southern African with 8.1 and 4.1 per cent, respectively.
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