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Public-Private Partnerships in Financing Digital Infrastructure: Lessons from African Case Studies (Ghana, Nigeria, and South Africa)

Domaine:

digital infrastructure

Type de record:

paper
Créateur:
Ken
Éditeur:
Elsevier BV
Hôte:
This study examines how Public-Private Partnerships (PPPs) are used to fund and speed up digital infrastructure development in three important African countries: Ghana, Nigeria, and South Africa. Using a multiple-case study design, we look at different PPP models, such as wholesale mobile networks, fibre duct infrastructure, foundational digital identity systems, and provincial broadband projects. The findings show that successful PPPs often use the government as a main customer to create demand. They also split passive assets to invite more private involvement and set up clear revenue streams for digital platforms. Key challenges include encouraging demand for wholesale-only models, dealing with complex regulations, and building strong governance frameworks (ITU, 2022). The study confirms that PPPs are a strategic instrument to bridge the investment gap and leverage private capital, technical skills, and innovative channels for digital infrastructure deployment in Africa, where public resources are still limited. Effective PPPs in Nigeria, Ghana, and South Africa all shared the following themes: Anchor Tenancy and Government Demand: Having government act as an anchor tenant (e.g., for the Ghana Card or Western Cape Broadband) has a significant influence on private partners' demand risk and helps to establish a robust business case for long-term investment, particularly in the provision of more remote areas. The study recommends that policies focus on transparent concession terms, open-access rules, and realistic evaluations of market situations to promote fair and lasting digital change (Calderón & Cantú, 2021). Governments need to create and enforce easy-to-understand concession terms and robust governance frameworks for all digital infrastructure PPPs. This should involve detailed contracts, performance monitoring, and flexible governance to address problems like power imbalances and misaligned incentives. The Ghana Card project showed the value of having multiple agencies in charge, including Value-For-Money (VFM) audits from public procurement authorities, assessments from finance ministries, and reviews from legal departments, all leading to parliamentary approval.

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