Public-Private Partnership Initiative for the Central African Economic and Monetary Community

Public-private partnerships (PPPs) are a key driver for development within the Central African Economic and Monetary Community (CEMAC). With the widespread situation of macroeconomic deterioration, exacerbated by the Covid-19 health crisis, the Member States face major financial challenges. PPPs provide a potentially effective way of revitalising infrastructure, while avoiding excessive public debt.

However, despite their potential, PPPs in the CEMAC region are hindered by the inadequate understanding of the required legal instruments and institutional frameworks. The capacity of local contracting authorities is often limited, which creates imbalances in the negotiation and management of PPPs.

To overcome these challenges, it is essential to invest in appropriate training and technical assistance programmes. An innovative approach is proposed and aims to strengthen the competences of public operators and improve the quality of the investments.

Africa’s infrastructure financing needs are estimated at between $130 billion and $170 billion. Despite a significant increase in 2018, which generated an average level of commitments of $83 billion for 2016-2018, the financing deficit remains high, reaching an average of $93 billion a year (Source: ICA 2018 Report, African Development Bank).

This lack of infrastructure and essential services, along with the need for a greater participation of the private sector in the subregion, has prompted institutions in Central Africa, in particular the CEMAC, to strengthen their economic development programmes. The establishment of a regional framework governing PPPs is thereby central to the CEMAC economic programme.

France and the World Bank have joined forces to launch an initiative to promote PPPs in CEMAC countries. It aims to promote a structural reform conducive to the development and implementation of a flow of projects handled as PPPs.

Financed by CEMAC and AFD, and implemented by Expertise France, the overall objective of the initiative is to help CEMAC countries develop basic infrastructure and public services through PPPs, and improve the public procurement framework.

The project is based on three lines of action:

• “Strategising”: implementation of a strategy and a harmonised regional legal and institutional framework on PPPs (or public procurement)

• “Strengthening”: strengthening the capacities of operators in the implementation of projects using the PPP tool (or public procurement tools)

• “Planning”: support for the planning, identification and selection methodology for regional PPP projects, or in one of the Member States (if this option is retained)