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PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY
REGIONAL UPDATE
PPIAF’S WORK IN SUB-SAHARAN AFRICA
April 2012
Sub-Saharan Africa (SSA)’s economies have improved markedly over the past decade.
The continent’s real GDP grew by roughly 5% per year from 2000 to 2008, reaching
$1.56 trillion in 2008 prior to the financial crisis, at a similar level to the GDP of China.
Although the financial crisis slowed the economic boom, SSA has showed significant
resilience, and economic growth climbed back to 5% in 2011. This growth story has
been built on sound macro-economic principles that have reduced inflation from the
highs of the 1990s, brought about tax reforms and the privatization of state assets, and
energized the market through private-sector friendly policies and sector strategies.
Nevertheless, many SSA countries continue to face serious infrastructure deficits that
negatively impact economic growth across the continent. As a result, many of the
region’s governments are recognizing that mobilizing the required investment to
support the development of infrastructure will be a major challenge. To address
this, governments are looking to engage the private sector through public-private
partnership (PPP) arrangements to close the gaps in investment capital, technology,
and know-how needed to improve the efficiency and delivery of public infrastructure
services. Requests for PPIAF assistance in the region continue to be high, as governments
seek support to help develop the appropriate enabling environment for private sector
participation, as well as the knowledge and expertise to develop and implement
bankable PPP projects.
As of March 31, 2012 PPIAF had provided $72,596,855 in funding to 333 projects in
SSA, representing 35% of PPIAF’s total funding portfolio. The region continues to
be the largest recipient of PPIAF assistance, and in fiscal 2012 activities in SSA have
represented 41% of the total portfolio. Since inception, the most frequent recipients
of PPIAF assistance have been Kenya, Mozambique, and Nigeria. While support to
these countries will continue, the portfolio is also diversifying to support fragile and
conflict-affected countries such as Côte d’Ivoire, Liberia, Sierra Leone, and South
Sudan. On a sectoral basis, energy activities represent 55% of PPIAF’s ongoing portfolio
in the region, followed by 17% for multi-sector activities, and 12% for water sector
activities.