Committee – CGPP II Enhancing Role of Private Sector
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Transcript of Committee – CGPP II Enhancing Role of Private Sector
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!