The rising tide of public-private partnerships in transforming Africa’s infrastructure landscape

File image of Nairobi Expressway

By Mercy Thuo

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.

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