Committee – CGPP II

Enhancing Role of Private Sector

Sam Cho, Ph.D.

9-10 March 2011

Outline

Role of the Private Sector in Africa Major Challenges Pan-Africa Investment Forum Public-Private Partnerships (PPP)

Role of Private Sector

Private sector recognized as engine of growth – trade, investment & economic

transformation critical role for poverty reduction – employment & income

generation

Growing demand and role for basic service delivery – through Public-Private Partnerships (PPP)

PS role in major sectors is key to sustainable development Infrastructure Industrial development Agriculture

Challenges for doing business in Africa

Major Challenges for PSD

Investment Climate & Doing Business Governance and institutional framework – including

deregulation, corruption, Policy related constraints Infrastructure and public utilities

Active PSD Support Support & business development services Sector specific issues Access to requisite resources: Supply-side Constraints:

Access to finance, land and technology Human Capital and Labour Regulation

Low productive capacity in Africa

Pan-Africa Investment Forum

Pan-Africa Investment Forum (PAIF)

Joint Event with Strategic Partnership Energy Ministers Conference of AUC PAIF of UNECA & All Africa Energy Week of AfDB - in

Maputo, Mozambique

Main activities of the Forum Thematic Conference and Business Roundtable

Accomplishments Provided a much need vehicle for synergy of activities

between all stakeholders involved; Successfully established a continental-level platform to

promote private sector participation in key infrastructure and energy sector through PPPs and policy dialogue.

THEMATIC CONFERENCE BUSINESS ROUNDTABLE

Investment for infrastructure development in Africa

Cases and best practices

Regional infrastructure development

Emerging opportunities and institutional support

PAIF (cont’d)

Focus on promoting investment:

Business consultations based compiled pipeline projects at both sub-regional and country levels;

Presentations on projects in infrastructure and potential package investment deals at sub-regional and country levels; and

Networking and policy dialogue with international investors.

Lessons learnt & way forward

Need for platform / forum at sub-regional level for policy dialogue and investment facilitation and promotion

Ministerial roundtable is critical for policy dialogue with the private sector

Need for a Database of pipeline projects, with a particular emphasis on infrastructure

Pivotal role of the private sector in sub-regional and regional infrastructure development.

Public-Private Partnerships (PPP)

In Africa

Rationale and role

Why PPP in Africa? Insufficient state investment Growing pressure on government budgets and Inefficient provision of services by State Effective mechanism for resource mobilization Enhancing PS participation

PPP as an alternative for privatization PPP situated between government monopoly and

complete privatization while avoiding some of the pitfalls of privatization: unemployment, higher prices and corruption

Current Work

Series of activities on PPPs Publication on “PPPs in Public Service

Delivery - the Energy and Related Sectors in Africa”

Expert Group Meeting on “PPPs: Challenges, Best Practices and New Trends”

Capacity building outputs/activities – government officials

PPPs – to do

Work with partners to:

Address challenges through publications and workshop

Establish PPP implementation framework

Build PPP coalition and network Create PPP fund for capacity building

Thank you!