As two days of discussion on Public Private Partnerships in the Southern African Development Community closed in Sandton yesterday, over 120 representatives from both state enterprises and business left with concrete ideas on how to collaborate on a number of identified projects in the region.

Six priority projects were presented at this first ever Public-Private Dialogue, hosted by the SADC PPP (3P) Network in partnership the NEPAD Business Foundation (NBF). The forum aimed to facilitate structured communication between public and private actors in PPPs, thereby strengthening the efficacy of the PPP approach to achieving infrastructure development in the SADC region. SADC 3P and the Public Private Dialogue process are currently being supported by the German Development Cooperation.

Kogan Pillay, Head of the SADC 3P Network, says that the focus of this event was not about ‘talking shop’, but rather identifying projects and developing concrete ways of getting them to market.

The status of projects in pan-African rail, ICT, water, ports and  education were presented to the predominantly private sector audience for suggestions and recommendations on how they can successfully pass the feasibility stage and progress to successful bankable projects. According to the SADC Regional Infrastructure Masterplan, approximately USD 500billion capital is required for current projects, with USD100billion required from the private sector.  “Projects that have been identified are PPP ready” states Pillay, “we need to use them as tools for regional integration by establishing a project pipeline.  We want to attract early stage investors and create a space between public and private sectors that will be successful.”

Forum partners, the NBF, are therefore an integral part in the conversation about regional economic development. With their newly established Africa Infrastructure Desk (Afri-ID), the NBF brings to the table the private sector commitment to the SADC developmental agenda.

“We have to look at the developmental aspirations and objectives of the continent and as a result, each project needs to have some element of capacity building,” says Lynette Chen, CEO of the NBF. “Members of the Afri-ID Steering Committee have been selected from leading private sector companies operating in Africa that are either users of infrastructure - such as mining, oil and gas, agricultural and retail chains -  or infrastructure developers and development finance institutions with a latent appetite for cross border infrastructure projects.”

To this end, and to foster continued collaboration between the various parties, a Memorandum of Understanding  was signed by both the SADC 3P network and the NBF at the PPD.

KPMG was contracted by SADC 3P to assess which projects in the region could be effectively leveraged “Each project has its own unique nature and characteristics. What is required is a consolidated approach – especially between member states,” comments Debuys Scott, Head of Global Infrastructure and Project Group and Partner at KPMG South Africa. “In order to get the pipeline started, let’s change the perception of the investment climate on the region. Where we go from here will depend on how successful we are in getting these identified projects to market.”

A large part of being successful - and the reason for the PPD – was to get insight into improving the terms of reference in order to make them more attractive to potential investors. What emerged as a big concern for South African business when considering investing in the projects presented was the potential for preferential consideration to companies that are already operating in the SADC region. Whilst governments may not be able to guarantee this at this stage, the suggestion was tabled for negotiations.

There is also a need for clearer, more transparent terms of reference from the governments and agencies seeking investment and collaboration. Political will and cross-border legal matters are also inhibiting factors that need to be addressed in order for the private sector to get involved the creation of PPPs.   

Next steps include creating working groups around the projects presented, and ensuring that they get implemented.  Reiterates Pillay, “Africa does not need to be poor – the means to transform it is in our hands; it’s here within our reach. We want to end up with an integrated trading region that is free from poverty.”