Fiscal risks in public-private partnerships : a benchmark study on Africa

Abstract

This comprehensive data-driven bench-marking study of PPPs in Africa, the first of its kind, was conducted with a view to deepening understanding of the PPP landscape on the continent and ascertaining countries’ preparedness for PPP projects. The study provides an overview of the various types of PPPs that can be found across Africa, highlights key risks, and underscores the need for a comprehensive understanding of those risks in order to sustain the continent’s financing for development agenda. The particular focus of the study is on structural and institutional risks, which are under the purview of, and easily controlled by policymakers, with a view to providing information on measures that can be taken to strengthen institutions for the management of fiscal risks in PPPs. It identifies the steps taken by South Africa to manage fiscal and, in particular, contingent liabilities as best practices. The study is intended to inform and provide policymakers, investors and other relevant stakeholders with a starting point or benchmark on PPP-related interventions both at the country and regional level. It also sets forth a number of recommendations that were formulated during an ECA-led session entitled “Implementation of people-first PPPs in Africa: the role of African PPP units”, which was convened as part of the fourth International PPP Forum, held in Geneva, Switzerland in May 2019.