COVID-19: How the pandemic impacts the structuring of PPPs for infrastructure projects

As Africa seeks to close its infrastructure gap, the Director of Finance and PPPs at Senegal’s Ministry of Economy, Finance and International Cooperation, Lamine Lo, sheds light on the implications of the COVID-19 pandemic on the structuring of Public-Private Partnerships (PPPs) for infrastructure development projects on the continent. In a recent interview on CNBC Africa, Lo discussed the challenges and opportunities presented by the current global health crisis. The COVID-19 pandemic has had a profound impact on economies worldwide, and African countries, including Senegal, have not been exempt from its effects. The slowdown in economic activities has also affected infrastructure projects, but Lo pointed out that PPP projects have shown resilience in the face of adversity. One key takeaway from the crisis is the importance of prioritizing people in the risk allocation process. While PPP projects have traditionally focused on value for money and risk allocation, Lo emphasized the need to put people first in the decision-making process. This shift towards a people-centric approach is expected to drive future developments in the PPP space. Senegal is currently implementing a robust recovery plan to address the economic challenges brought about by the pandemic. President Macky Sall recently launched a $2.6 billion recovery plan, with 40% of the funding expected to come from the private sector. The plan includes strategic investments in social services such as health and education, food security, and the development of local and regional tourism. Furthermore, the role of the local private sector is crucial in driving Senegal's recovery and development strategy. By engaging domestic businesses and leveraging their expertise, Senegal aims to build back better and create a more resilient and sustainable infrastructure landscape. Overall, while the COVID-19 pandemic has posed significant challenges to infrastructure projects and PPPs in Africa, it has also highlighted the importance of adaptability, resilience, and a people-centered approach in driving future developments in the sector.