While public-private partnerships (PPP) have become essential in the financing of energy infrastructure, the African private sector still responds only very marginally. Between the complexity of financial arrangements and the risk of budgetary sustainability, should “PPPs” evolve into “PP-SMEs” by integrating new sectors of activity?

According to the African Development Bank (AfDB), infrastructure needs on the continent are between 130 billion and 170 billion per year, while commitments are between 67 billion and 83 billion. The state of under-supply is particularly clear in terms of electricity, because with 44%, Africa records the lowest electrification rate in the world. An African consumes on average the equivalent of 4% of the consumption of a North American. With 26% of its inhabitants having access to electricity (compared to 89% globally), the Sahel is plunged into darkness. However, this observation should not obscure the heterogeneity of the situations or the progress made in certain countries, such as Senegal. "We will have to invest 600 billion CFA francs so that our compatriots who still live in the era of candles and kerosene lamps finally have access to electricity", declared the President of Senegal, on the occasion of his last end-of-year speech to the Nation. The country, which has an electrification rate of 64%, is committed to investing USD 1 billion in rural electrification by 2023, to cover the last gray areas in the picture of Senegalese emergence... On the Mediterranean side, Aziz Rabbah, the Minister of Energy, Mines and the Environment of the Kingdom of Morocco recalled that "in 20 years, rural electrification in Morocco has increased from 22% to more than 99%”, during the live “Global Mind Talks” on July 16, organized by the consulting firm Global Mind Consulting and dedicated to the financing of African infrastructures, which brought together several high-level experts. "We are in the process of moving to a rate of electrification which allows us not only lighting, but also the development of activities in the rural world", he welcomed. Indeed, electricity, which continues to concentrate a large number of PPPs, is not always accompanied by development. Also, in order to reinforce their impact, the idea of extending them to new sectors of activity is beginning to dig its furrow in African lands. From the polarization of the energy sector to diversification "For a long time, African countries have resorted to sovereign debt to finance their infrastructures, with a strong presence of players such as Turkey and of course China," explains Moustapha Sow, CEO of SF Capital, considering that "it has become crucial to review the way of financing infrastructures after the Coronavirus (...) The debt capacity which is increasingly reduced forces us to resort to public-private partnerships (PPP) , whose models could be used to finance health infrastructure, for example,” he added. To date, PPP projects in agriculture are multiplying and health may well experience renewed interest, following the SARS-CoV-2 pandemic. It must be said that the needs are crying out. A study by the RAND Corporation revealed in 2016 that, of the 25 countries most vulnerable to infectious diseases, 22 were in Africa (the others being Afghanistan, Yemen and Haiti). According to the World Health Organization (WHO), Africa manufactures less than 2% of the drugs it consumes. It only benefits from 1.3% of the world's financial resources dedicated to health and only has 3% of health professionals. Introducing PPPs in the financing of medical infrastructures could well serve as an accelerator. To do this, “it is important to review the regulations after this pandemic period” warns Moustapha Sow, aware that “few countries have put in place PPP laws”. With a few exceptions, such as Morocco, Senegal or Rwanda, the harmonization of regulatory texts remains uncertain. Nevertheless, at the regional level, certain initiatives such as the “CEMAC Vision 2025” and the “COMESA PPP guidelines”, support the improvement of the business environment, favoring PPPs which, in a few years, have become essential. in infrastructure financing. However, the private sector (particularly in Africa) still only marginally meets these needs. For example, in terms of transport and energy infrastructure, private investment has represented USD 50 billion in Africa over the past 25 years, i.e. 6 times less than in Brazil, according to the report "Infrastructure Financing in Sub -Saharan Africa, 2017” by Boston Consulting Group (BCP). An African private sector not sufficiently involved Who says "PPP", also says "big projects" where African companies are still conspicuous by their absence... For the Minister of Energy, Mines and the Environment of Morocco "the practicing PPPs, particularly in infrastructure, requires significant skills” and presupposes the use of consortia integrating both international and local companies. While the minister of the Cherifian kingdom evokes "skills", the minister of Senegal comes back to financial capacities: "If you want to build a highway like Illa-Touba (the highway linking Thiès to Touba, built by a Chinese company for a cost of 416 billion Fcfa), you do not have many local companies capable of raising financing, ”says Abdou Karim Fofana. “When Senegalese companies have the means to finance these projects, we do so. Moreover, the realization of the second ministerial sphere of Diamniadio was entrusted to the Teyliom group and several regional companies entered into consortia, alongside international groups. In addition, 55% of the works of the TER [Train Express Régional, ndlr] are carried out by companies under Senegalese law such as Sertem or the Senegalese Company of Companies (CSE)”, added the Minister. For Aziz Rabbah, it is necessary to opt in a general way, for "a certain national preference, which is moreover practiced on a world scale, to give "a plus" to the company under Moroccan law (...) The under -contracting must be local”. He also specified that major infrastructure works should be accompanied by an "impact on local development, particularly in terms of employment", considering that it is necessary to reconnect local populations with the gigantism of certain projects (which sometimes only affect them negatively through noise and/or environmental pollution). For his part, Edoh Kossi Amenounve, the Managing Director of the Regional Stock Exchange (BRVM) is campaigning for the development of savings which would ultimately be redirected towards infrastructure projects and encourages Africans to rely on bond issues and project bonds. "The liquidity market is not popular enough in Africa", agrees Moustapha Sow, who expects greater mobilization from the diaspora and Business Angels, but also more initiatives from African private sector players in direction of their international partners. The roadmap has been drawn up, but African SMEs will not be able to jump on the bandwagon without benefiting from strong support measures from their respective governments. Between budgetary dimension and regulatory complexity, they will also be subject to competition from border SMEs -soon facilitated by the African Free Trade Economic Zone (Zleca)-, but also to those of their Turkish, French or Chinese counterparts.