PPIAF - Reform, Private Capital Needed to Develop Infrastructure in Africa (2006)
This issue of PPIAF’s publication, Gridlines, shows that, in Sub-Saharan Africa, the story of private participation in infrastructure has been largely one of telecommunications. With other sectors taken into account, the levels of private activity have been low for the past 15 years. Still, the overwhelming need for infrastructure has motivated regional economic organizations to push for an ambitious agenda of private participation. But to begin solving Africa’s infrastructure investment problems, the authors argue that broad institutional reform along with greater financial commitments by governments and donors will be required. The private sector appears capable of supplying only a fraction of the estimated US$5–12 billion a year in additional infrastructure finance that Africa needs to meet its Millennium Development Goals for infrastructure.