Improving private public partnership uptake in Africa: case study general electric Africa
Public Private partnerships have progressively transformed in the last decade from joint agreements between public and public sector to formal partnerships which are guided by clear policies and legislations to manage the expectations and outcome. World bank explains that if PPP‟s are well designed and implemented in a balanced regulatory environment, they can bring greater efficiency and sustainability to the provision of public services such as water, sanitation, energy, transport, telecommunications, healthcare and education. As this thesis shows the principles of PPP‟s in various parts of the world are standard but there is a variety of success from one country to another. The objective of the study was to identify ways that PPP uptake can be enhanced in Africa. The questions asked were; what are the main factors that hinder the uptake of PPP in Africa; what role does financial institutions play in the enhancement of PPP uptake and how can PPP strengthen the local capacity in Africa. The research used case study methodology in which the author examines the challenges and best practices exercised by General Electric Africa in its participation of PPP projects in Africa. Questionnaires and interview guides were used as the main instruments of data collection. The data was examined using both quantitative and qualitative approaches. Quantitative data analysis was used to analyze the data collected from the questionnaire. A qualitative approach was used to analyze the data retrieved from the interview guides. Secondary sources such as books, journals and thesis were used and proved beneficial in providing information for this study. The study established that political interference, lack of clear regulatory framework, uncertain bidding process and lack of funds are still key factors that affect the success of PPP‟s however there are measures that the government and public sector can take to address this issues. This includes involvement of all stake holders from the onset of the project, the stakeholders should include the financial institutions, private investors, and sub-contracts. Bidding process should be transparent to ensure the government gets a competitive pricing of projects to minimize costs. Private investors should consider setting up fund management initiatives that will enhance their competitiveness in securing PPP projects and its implementation till completion. Also, in cases where the service provided is expensive, partnership with other financial institutions is necessary to provide funding options for the consumers of the service. Private investors can engage in various partnerships with the education institutions in Africa to enhance knowledge sharing between their employees and students to build capacity for future employees.