Private sector participation in infrastructure for development

Abstract
This article reflects on the variety of finance sources to African countries, including aid flows, remittances, development finance, private equity and bonds and foreign direct investment. In order to address the poverty challenge, estimated at about $66 billion annually, these finances must be applied appropriately in various economic sectors, in particular the infrastructure sectors. These include both physical assets (transport, energy, water and sanitation and information and communications) and social services (hospitals and clinics, education and low-income housing). Governments are ultimately responsible for ensuring access to infrastructure for their citizens. However, developing-country governments are unable to address the infrastructure backlogs, let alone develop new assets, especially in the least developed countries in Africa. Governments rely on alliances with international partners, development finance institutions and, importantly, the private sector. However, the rules of engagement with the private sector need to be redefined, with proper emphasis on bringing affordable yet quality access to poorer communities.