China’s BRI and EU Global Gateway Experiences with Public-Private Partnerships for Infrastructure Projects in Africa: Assessing Impact and Significance
Public-private partnerships (PPPs) are a type of contract allowing private parties to cooperate with government entities for the provision of public assets or services. They are considered important tools for addressing the existing “infrastructure gap” affecting developing economies. Connectivity plans such as the BRI and the Global Gateway, tied to transformative visions of the international order and economic development have been also relying on such type of contracts to deliver their objectives. This study examines Chinese and EU PPPs implemented within the frameworks of the BRI and the Global Gateway in Africa to assess whether these actors are capable to match their top-down narratives with effective infrastructure development in a continent of key strategic importance for both. In the case of China, this study finds that PPPs within the BRI framework continue to be affected by issues such as institutional opacity, delays in delivery, and ballooning costs, notwithstanding Beijing’s effort to improve PPP regulations at home and to engage with UN agencies on these issues. In the case of the EU, it finds that, in contrast with the European Commission narrative about the Global Gateway, the existing involvement in PPPs for infrastructure is currently underwhelming for scope and value, as well as, at times, lacking transparency. As a result, rather than stimulating virtuous competition, the Global Gateway risks to further politicize the issue of connectivity without effectively delivering new infrastructure in developing countries.
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Details
ReConnect China Research Papers, No. 1 (September 2024), 14 p.