OPINION: The rising tide of public-private partnerships in transforming Africa's infrastructure landscape

The transformation of Africa’s infrastructure landscape through Public-Private Partnerships (PPPs) represents one of the most promising developments in the continent’s journey toward economic prosperity.

With rapid urbanization and population growth placing immense pressure on public resources, countries like Kenya are increasingly turning to PPPs as a viable solution to bridge the infrastructure funding gap.

For decades, government-funded projects have played a crucial role in developing essential services, including roads, bridges, railways, airports, ports, utilities, public buildings, and energy infrastructure.

However, traditional financing models have proven inadequate in meeting growing demand, leading to a persistent infrastructure deficit that hampers economic growth and social development.

In response, PPPs have emerged as a sustainable alternative, leveraging private sector expertise and financing to complement public investment. Kenya’s Vision 2030 blueprint, which aims to achieve middle-income status through industrialization, underscores the importance of integrating PPPs into the country’s long-term development strategy.

Successful projects across Africa highlight the potential of well-structured partnerships in delivering transformative infrastructure. Take, for instance, the Dakar-Diamniadio Toll Highway in Senegal, which stands as a testament to what well-structured partnerships can achieve.

The transformation from a gruelling two-hour journey to a swift 30-minute drive has not only improved daily life for commuters but has also catalyzed economic growth by enhancing connectivity to key regions.

The project's success in attracting diverse funding sources, including the World Bank and African Development Bank, demonstrates the confidence that international institutions place in well-designed PPP initiatives.

Closer to home, Kenya's Nairobi Expressway has become a symbol of PPP success in East Africa. The reduction in travel time from Mlolongo to Westlands, from over two hours to just 20 minutes, illustrates the tangible benefits that such partnerships can deliver.

The Build-Operate-Transfer model employed in this project offers a sustainable approach to infrastructure development, allowing private investors to recoup their investments while maintaining high service standards.

A landmark development in Kenya’s infrastructure sector is the proposed Usahihi Expressway, a $3.5 billion project spearheaded by U.S.-based Everstrong Capital, with CPF Capital & Advisory serving as the Lead Transaction Advisor and Placement agent.

The initiative represents a major leap in PPP implementation, with the establishment of the Pack Hunters Club consortium reinforcing Kenya’s growing investment ecosystem. Notably, the project includes an ambitious plan to raise $1 billion through Kenya’s capital market instruments, a move that is expected to enhance infrastructure investment and deepen local capital markets.

The Usahihi Expressway is more than just a road; it is envisioned as a “wealth corridor” that will unlock economic opportunities, stimulate investment, and support regional development.

Beyond individual projects, PPPs signify a fundamental shift in infrastructure financing across Africa. They offer a structured framework for mobilizing private capital, transferring technology, and improving service delivery while ensuring fiscal sustainability.

The success of such partnerships underscores the need for enhanced regulatory frameworks that facilitate long-term investment while protecting public interests.

By strengthening capital market participation, incentivizing institutional investors, and fostering an enabling policy environment, governments can accelerate infrastructure development and drive economic transformation.

Looking ahead, PPPs are set to play an increasingly crucial role in addressing Africa’s infrastructure deficit. With growing investor confidence, innovative financing structures, and the integration of capital market instruments, these partnerships are poised to redefine how large-scale infrastructure projects are delivered.

As more African nations adopt this model, the continent moves closer to achieving sustainable and inclusive development through strategic infrastructure investment.

The writer of this article is the Ag. Executive Director - CPF Capital & Advisory Limited.