Mobilising private development
flows
Magdalene Apenteng
Director – Public Investment
13th November 2014
Presentation outline
a. Public investment management in Ghana
b. Context and motivation for the private sector
& investor
c. Instruments for leveraging private sector
financing – PPPs, equity funds, blended
finance
d. Debt sustainability and development
sustainability
e. Challenges and Conclusions
Country Overview
• Land Area : 238,533 sq. km (2010
census)
• Income Level : Lower Middle Income
• Population: 25,904,598 (2013 WDI
• Population growth rate : 2.5%
• Real GDP growth: 7.% (2013
• GNI per capita US$3,880 2013)
• Headline Inflation : 8.8% (end of Jan,
2013)
• Doing Business 2013
– Ease of doing business
(rank): 64
– Protecting investors
(rank): 49
Public investment management
• Efficient management and delivery of public
investments for accelerated growth:
• Develop a national public investment policy.
– Establish an appropriate policy framework to
guide public investment decisions;
• Oversee the management of state
investments in SOE’s and Joint Ventures;
– Monitor commercial and strategic investments of
Government;
Public investment management
• Efficiently allocate resources for public
investments.
- Prioritise and establish Database and gate
keeping role;
• Coordinate and implement the National PPP
program – policy, institutional, legal
framework; provide transaction advisory role;
monitor and evaluate projects
• Assist in the preparation and defining of
various projects for the market
Motivation for investors
• Clear framework – well defined policty,
regulatory and institutional processes –
• Law – sector laws and regulations;
• Appropriate identified risk and mitigatio
factors
• adequate project preparation activities; public
sector capacity to implement, monitor and
evaluate projects and
• Specific government support – political
commitment
Available instruments
• Instruments for leveraging private sector
financing
• Public Private Partnerships (PPPs),
• Equity funds;
• Blended finance
Sustainability – debt and
development
• Meeting the benchmarks - burden of state
owned enterprises – escrow accounts
• Deregulation of pricing and subsidies
• Establishment of the Ghana Infrastructure
Investment Fund – commercially viable
projects
• Capacity building activities
Challenges
• Political commitment – strong sponsorship of
projects
• Political dispensation – period and an
appropriate investment policy for adequate
prioritization and execution of critical projects
• Comprehensive capacity building and effective
communication activities
Challenges
• Private sector capacity to also accept some of
the risks – support from the development
finance institutions
• Overall fiscal sustainability is required
Conclusions
• Private sector participation could accelerate
the delivery of critical infrastructure;
• Sufficient local capital funding
• Policy framework
• Institutional capacity
• Balance risks and rewards
THANK YOU