AfDB Approves $5.3m Grant to Boost PPP Investment Climate in Four African Nations

The AfDB views PPPs as a vital tool for mobilising private capital to meet Africa’s growing infrastructure and service delivery needs, particularly where public budgets are constrained.

The African Development Bank Group (AfDB) has approved a $5.3 million grant to enhance the public–private partnership (PPP) environment and attract greater private investment in The Gambia, Guinea-Bissau, Madagascar, and Togo. The project, endorsed by the Bank’s Board of Directors on 27 June 2025, is financed through the Bank’s Transition Support Facility under Pillar III, which focuses on critical capacity-building and technical assistance for countries facing fragile and conflict-affected situations.

Created in 2008, the Transition Support Facility provides additional concessional resources to help vulnerable nations strengthen institutions, improve governance, and implement reforms essential for economic resilience.

Strengthening the PPP Landscape

The newly approved project seeks to create a more coherent and attractive framework for private sector engagement while equipping public institutions with the tools to structure and negotiate PPP contracts effectively. By enhancing the readiness and capacity of contracting authorities, the initiative aims to establish a balanced, transparent, and investor-friendly PPP system across the four target countries.

“This project will enable the African Development Bank to build on its ongoing efforts to strengthen the business environment and promote the private sector in the four countries through previous operations,” said Solomon Quaynor, AfDB Vice President for the Private Sector, Infrastructure, and Industrialisation. “It aligns with the three pillars of the strategic framework for public–private partnerships, contributing to its operationalisation.”

Three Strategic Components

1. Strengthening the PPP Environment

   • Development of coherent regulatory frameworks for PPPs.

   • Operationalisation of institutional setups to manage PPP arrangements.

   • Capacity building for stakeholders, including training on contract negotiation, risk allocation, and long-term project monitoring.

2. Enhancing Private Sector Participation

   • Targeted support for local businesses to engage in PPP opportunities.

   • A practical case study to guide stakeholders through the stages of the project cycle, applying tools developed under the first component.

   • Initiatives to encourage competitive bidding and inclusive participation from domestic firms.

3. Establishing an Effective Project Management Unit (PMU)

   • Creation of a dedicated PMU for stable, transparent project oversight.

   • Strategic and operational monitoring by relevant national authorities.

   • Ensuring lessons learned are documented and project results are visible to attract future investments.

Building on Previous AfDB Efforts

The Bank has a history of supporting business environment reforms and private sector promotion in the four countries through infrastructure projects, investment facilitation programs, and capacity-building initiatives. This PPP-focused project will complement those efforts by directly addressing the structural and institutional gaps that hinder private investment, particularly in fragile states.

Expected Impact

By the end of its implementation, the project aims to:

• Increase the number of bankable PPP projects in the pipeline.

• Improve investor confidence in the regulatory and contractual environment.

• Strengthen the capacity of government institutions to negotiate and manage large-scale infrastructure and service contracts.

• Promote inclusive economic growth by encouraging local private sector engagement in strategic projects.

The AfDB views PPPs as a vital tool for mobilising private capital to meet Africa’s growing infrastructure and service delivery needs, particularly where public budgets are constrained.