An Appraisal of the Framework for Public Private Partnership in South Africa

Abstract

Huge infrastructure gaps in many countries in the face of budget deficits as well as the need to tap into private sector capital and management expertise are the main reasons why governments across the world adopt the public-private partnership (PPP) model of infrastructure procurement. The first structured PPP arrangement in South Africa dates to 1997 and since then, South Africa has maintained a leading position in PPP administration and regulation in sub-Saharan Africa. As such, the model in South Africa can serve as a template for other countries in sub-Saharan Africa. The paper discusses the legal and regulatory framework for PPP in the country and recommends that the process in South Africa be made simpler and transparent to encourage more interests from both foreign and domestic investors. Keywords: PPP Framework; Infrastructure; Investment; Investor; Public Procurement.