Africa has more than $ 791 billion active projects using public-private partnerships. The 46% or $ 369 billion is currently being built.

As wave after wave of COVID-19 ravages global economies, poorer countries are being negatively affected than their developed peers. Unfortunately, Africa has some of the poorest countries where the majority of the population earns less than the international poverty line of one dollar ninety a day.

COVID-19 restrictions cause long-standing businesses to collapse, and on a continent where small traders are the core of the economy, many have lost their only means of generating income. Less trade equals less revenue for government coffers. With the added expense of medical services and maintaining the salaries of government employees, coffers are being depleted at an alarming rate. The debt of 13 African countries to gross domestic product (GDP) exceeds seventy percent. 

From this point of view, Public-Private Partnerships (PPPs) are likely to become an essential means of financing critical infrastructure projects in Africa.

At the moment, Africa has 791 billion dollars in projects developed on the basis of PPP. Of the $ 791 billion, forty-six percent, or $ 369 billion, is currently under construction. South Africa leads the continent with 10.8% of the continents' PPP projects. In second place is Kenya followed by Egypt with 10.3 and 8.5 percent respectively.

The energy sector is the one that uses PPPs the most, with 44.3% of the PPP market. Transportation and oil and gas come second and third with 18.7 and 15.0 percent, respectively. The African Development Bank is the largest financier of PPP projects with 9.6 percent of the market, followed by the World Bank Group and the Southern African Development Bank with 8.1 and 4.1 percent. , respectively.

Source: ABIC Consulting