EDITORIAL: INDO-AFRICA SUMMIT RIGHT ON PPP ARRANGEMENTS

The November 4-6 Indo-Africa Summit this year virtually brought together leaders from India and sub-Saharan Africa “to capitalise on deeply-rooted ties” between the two sides in charting the way forward to build all-inclusive, sustainable economies. In the event, Summit participants drew lessons from India’s experience in public-private partnerships (PPPs), which some speakers described as “a good model for Africa.”

For instance, the executive director for Financial Services at the Africa Finance Corporation, Sanjeev Gupta, drew attention to the need to develop bankable projects to attract the private sector.

“African governments cannot be expected – and are, indeed, in no position – to take early-stage project risks, although they should be. This risk, arguably, resides better with the private sector, to better realize commercial aspirations,” Gupta said at the close of the Summit on Friday.

For his part, the Vice President for Private Sector, Infrastructure and Industrialization at the African Development Bank (AfDB), Solomon Quaynor, said the Bank had created the Africa50 Infrastructure Fund as a key leader for private sector-led projects preparation in Africa.

Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding – “with differentiated financial returns and impact”.

It was largely for this reason that the Indo-Africa Summit called for strong public/private partnerships in sincere efforts to close Africa’s infrastructure gap – and also strengthen trade.

Indeed, the summit moderator, H-Energy Global Ltd’s CEO Darshan Hiranandani, was optimistic that “India and Africa would be growth leaders in the coming years – and there has never been a better time”.

When all is said and done, the Summit did indeed come at the right time when economies are still reeling from the adverse effects of the global Covid-19 pandemic – effects which have increased economic uncertainty, and present a threat to global prosperity.

So, we should heed the Indo-Africa Summit on functional PPP participation in infrastructure and other developmental projects.