Privatizing Africa's Infrastructure

Book excerpt: This paper examines the promise and challenge of infrastructure privatization in sub-Saharan Africa, with particular emphasis on power, telecommunications, water, rail, ports and airports. The paper places primary emphasis on mobilizing private investment in infrastructure. To realize the potential of infrastructure privatization in sub-Saharan Africa, four main challenges must be addressed: a) concerns over market size, affordability and payment risks; b) establishing adequate legal and regulatory frameworks; c) dealing with non commercial risks; and d) mobilizing local finance. The paper examines these four areas and gives elements of a future strategy for the World Bank Group.