Public-Private Partnership in e-Governance projects in Africa

Collaborations with international organizations and financial institutions strengthen PPPs for e-governance initiatives, providing crucial support in terms of funding, technical assistance, and strategic guidance. They help to address such challenges as insufficient infrastructure, limited resources, and the need for specialized expertise. From 1990 to 2019, African governments allocated approximately USD 74,8 bln for PPPs. In 2020, a total of 479 PPPs have been implemented across the continent, with 409 of them having been in progress. The majority of the projects target electricity facilities development. 

Nevertheless, in 2024, Africa accounted for 7% of PPP investment worldwide, with the majority of the projects being concentrated in a few countries, namely Egypt, Morocco, Nigeria, South Africa, Kenya, and Uganda. These nations account for more than 50% of all PPP projects’ value. 

International actors

E-government development in African countries is supported by a plethora of international actors, both public and private. For instance, the World Bank actively supports PPP initiatives across the continent, providing financial resources, technical assistance, and policy advice. For instance, in the early 2000s, the Republic of South Africa launched the  South African National Treasury PPP program. In line with it, the South African Department of Labour and the World Bank PPP Unit developed the Stakeholder Interface Project, which led to improved access to labor-related services. 

The African Development Bank (AfDB) is also involved in promotion of PPPs across various sectors, including e-governance. AfDB’s initiatives cover the majority of the counties. During the period 2008 to 2018, South Africa, Morocco, Nigeria, Egypt, and Ghana were the primary locations for the implementation of PPP projects, accounting for more than 50% of all successful initiatives. Several other countries also had multiple PPP projects in the pipeline, with Burkina Faso having 20 and Botswana having 8. AfDB also introduced the PPP Strategic Framework 2021-2031 which is based on three pillars, namely  strengthening enabling environments, project preparation and transaction advisory, and financing. 

Another major actor on the African ICT markets is the Infrastructure Consortium for Africa (ICA), established at the 2005 G8 Gleneagles Summit. Members of the ICA include the G8 countries, World Bank Group, African Development Bank (AfDB), European Commission, European Investment Bank, and Development Bank of Southern Africa (DBSA). In 2020, the Consortium stated that a lack of political will and certainty was the primary obstacle for implementation of PPPs. 

In May 2024, the Partnership for Digital Access in Africa (PDAA) was established as a collaborative initiative involving public and private sector leaders from Africa, the United States, and other regions. Its formation was in response to U.S. Vice President Kamala Harris’s Call to Action, aiming to bridge Africa’s digital divide by expanding internet connectivity and promoting digital inclusion across the continent. Among the PDAA’s partners already are M-KOPA (Kenya), Nokia (Finland), Human Mobile Devices (Finland), as well as the World Bank, Smart Africa, the Rockefeller Foundation, MasterCard Foundation, and others. 

Solutions

Financing models

African countries employ a variety of PPP financing models that are tailored to the specific needs of e-government projects. Key structures include the Design, Finance, Build, Operate, Transfer (DFBOT) model that allows private partners to design, finance, construct, operate, and subsequently transfer e-government systems back to the government. It was implemented in Ghana’s e-government initiative. 

In April 2010, Ghana’s government entered into a PPP arrangement structured under the DFBOT model to modernize its e-government services. The collaboration aimed to streamline business registration procedures and introduce advanced software applications for the Ghana Revenue Authority and the Registrar General’s Department. The project was financed through a combination of public and private funding. The government provided approximately one-third of the USD 60 mln total project cost, using resources from the eGhana project funded by the World Bank, while the private sector contributed the remaining two-thirds.

Other common funding models include Design-Build (DB), where the private sector designs and constructs the project, and afterwards the government takes full responsibility for its operation and maintenance. Under the Design-Finance-Build-Operate model the private partner designs, finances, builds, and operates a facility for a specified period, after which ownership transfers to the government.  The Build-Own-Operate-Transfer model requires that a private entity constructs and operates a facility, earning revenue from user fees. Later, ownership transfers to the government. Build-Lease-Operate-Transfer (BLOT) lets the private party lease the facility to the government for the period of operation, before transferring ownership to the government. 

The concession PPP model suggests that a private entity is granted the right to operate and maintain a public service for a defined period, investing in its development and recouping costs through user fees or government payments.​ It was used in the implementation of Burundi Backbone System (BBS), established in 2010. The consortium included the Burundian government and private telecommunications operators. The landline incumbent Onatel Burundi formed a consortium with Tempo Africell, U-COM Burundi, CBINET and Econet Wireless, all of them being Burundian companies, to build the fiber optic network. The project also received the World Bank’s International Development Association (IDA) USD 20 mln grant, and was completed in 2014. 

Under management contracts, a government agency can engage a private company to manage public services or infrastructure on behalf of the government for a fee. This arrangement does not involve the transfer of ownership and is intended to improve efficiency and quality of service. In 2021, the National Information Technology Authority of Uganda (NITA-U) partnered with the United Nations Capital Development Fund (UNCDF) to develop a Data Protection Portal. The UNCDF provided technical assistance and financial support.

Establishment of digital free zones which offer special regulatory and tax conditions for private entities also encourages investment and innovation in the digital sector, thus driving developments in the e-governance sector. Itana, Africa’s first Digital Economic Zone, is located within Nigeria’s Lekki Free Zone. It partners with the Federal Government of Nigeria and states the advancement of the future of e-governance and the legal framework for the Digital Zones of Nigeria as one of the main objectives. 

Regulatory framework

To promote effective public-private partnerships, many African countries have implemented legal and institutional mechanisms, including dedicated legislation and regulatory bodies for PPPs. According to the World Bank report of 2024, 42 out of 54 African countries have adopted specific laws on PPPs. These countries have diverse legal systems, including civil law (24), common law (13), and mixed legal systems (5). 

Mauritius was the first African country to implement such legislation in 2004. As of 2024, Botswana, Eswatini, Lesotho, South Africa, Comoros, Eritrea, Seychelles, and South Sudan, Algeria and Libya were yet to enact specific PPP laws. The highest number of laws was enacted between 2015 and 2017, with 16 new laws being passed in this three-year period. In 41 countries at least one PPP unit is in place, with the Ministry of Finance being the most common authority responsible for the units (26 countries). 

Authors:

Daria Sukhova, researcher for the Hub