Committee – CGPP II Enhancing Role of Private Sector Sam Cho, Ph.D 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 CONFERENCEBUSINESS 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!