Committee – CGPP II Enhancing Role of Private Sector

1. Committee – CGPP IIEnhancing Role of Private Sector Sam Cho, Ph.D. 9-10 March 2011

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

3. 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

4. Challenges for doing business in Africa

5. 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

6. Low productive capacity in Africa

7. Pan-Africa Investment Forum

8. 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.

9. PAIF (cont’d) THEMATIC CONFERENCE BUSINESS ROUNDTABLE • Investment for infrastructure development in Africa • Cases and best practices • Regional infrastructure development • Emerging opportunities and institutional support • 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.

10. 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.

11. Public-Private Partnerships (PPP) In Africa

12. 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

13. 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

14. 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

15. Thank you!