Economy
Making Social Sector PPPs Work Across Africa
BirrMetrics · 6 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The 2026 ALSF PPP Forum in Addis Ababa explored how African governments can use private capital to deliver essential social infrastructure like hospitals and schools without compromising public affordability.
- Africa struggles to move infrastructure projects from political ambition to financial close and affordable service delivery, particularly in social sectors like hospitals, schools, and housing.
- The 2026 ALSF PPP Forum in Addis Ababa gathered African PPP units and development institutions to discuss delivering social infrastructure without commercializing public services.
- Maude Vallée of the ALSF states that public-private partnerships are a delivery model rather than a way to bypass government financing gaps, and costs inevitably return through user fees or government contributions.
- Primah Atugonza notes that many projects stumble due to rushed project preparation and inadequate funding for thorough feasibility studies and risk allocation.
- Ababacar M. Sambe highlights a major institutional capacity imbalance where public authorities lack the technical tools and negotiation capacity compared to private developers.
- Social infrastructure projects require creative funding mechanisms like Viability Gap Funding, land subsidies, extended concession periods, or secondary revenue streams to remain affordable.
- Ethiopia is progressing by addressing the broader ecosystem, including the banking and insurance sectors, and implementing projects such as diagnostic hospitals and affordable housing.
- Strong political will combined with institutional restraint and rigorous preparation is essential to ensure PPP transactions succeed and remain accessible to citizens.
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