2025 Reports

Africa’s Energy PPPs Succeed When Planning, Policy, and Public Interest Are Prioritized

Kamau, Andrew; Shastry, Vivek; Rongé, Sacha

Public-Private Partnerships (PPPs), which leverage private sector expertise and investment to reduce the fiscal burden on governments, have emerged as a key strategy to address financing bottlenecks for infrastructure projects. The performance of PPP projects across Africa has been mixed, with successes tempered by shortcomings in project preparation, procurement, risk management, and transparency. Without identifying and addressing these challenges, PPPs can incur high costs while producing limited benefits.

Drawing on a comparative analysis of three diverse projects—the Bujagali Hydroelectric Project in Uganda, the Tema LNG Import Terminal in Ghana, and the Kathu Solar Park in South Africa—this commentary explores how differences in project preparation, governance structures, and stakeholder alignment have influenced PPP project outcomes. Going beyond well-known shortcomings, it focuses on the enabling factors—such as institutional capacity, policy coordination, transparent procurement, and community engagement—for PPPs to deliver affordable and sustainable energy services while minimizing fiscal risks. By examining what distinguishes more successful projects from those that fall short, this commentary offers practical insights into how PPPs can be structured and supported to better serve the public interest, especially in fiscally constrained environments.