KIGALI, March 24 (Xinhua) -- Public-private partnerships (PPPs) have been cited as key towards achieving sustainable economic growth and eradication of poverty in developing economies across Africa, according to experts.
Development experts that attended the stakeholders meeting on public-private partnership program in Rwanda on Friday emphasized that benefits of public-private sector partnerships are plentiful, especially when it comes to powering growth within the struggling and poverty-stricken economies in Africa.
The one-day forum organized by the World Bank and the government of Rwanda focused on assessing the impact of public-private partnerships on economic transformation.
"Public-private partnership increases net investment in a specific industry and leads to greater project growth in a specific sector. Developing economies should adopt the partnership venture to achieve sustainable growth," said Yasser El-Gammal, Rwanda Country Manager for the World Bank Group.
He added that public-private partnerships are some of the strategies that will help drive socio-economic transformation on the continent.
According to the African Development Bank (AfDB), public-private partnerships have emerged over the last decade as one of the best ways to foster economic growth in Africa.
They have been fuelled by insufficient investment, growing pressures on government budgets and a general concern about service provision by state enterprises and agencies.
Clive Harris, Practice Manager in the Public Private Partnerships Group of the World Bank Group, told the meeting that government and private sector ventures serve the public's interests by spurring capacity-building efforts and creating a sound environment for investment in various sectors of the economy.
"In order for more partnerships to emerge in Africa, countries need to improve the business environment for the private investments to thrive. Africa's limited role in global trade and investment, limited infrastructure, and limited financial markets among others hinder the creation of public-private partnerships," he added.
World Bank says that mobilizing resources for infrastructure development, particularly in the energy, health, education, water and sanitation, transport and communication sectors in Africa requires strong investment linkage between governments and the private sector.
Diane Uwitonze, Acting head strategic investments at RDB said that there is already success in Rwanda's public-private partnerships projects specifically within the energy and ICT sector.
"The Rwandan government is taking the lead in creating a conducive environment for the public and the private sector to prosper. Public-private partnerships offer great value for money," she noted.
The World Bank is encouraging African countries to create the necessary legal and regulatory framework for public-private partnerships to thrive.
