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Public-Private Partnership: Opportunities for SMEs and for Social Infrastructure Partnerships

 Uganda_SME

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A Seminar for Policy Makers, Regulators, Financial and Private Sector Executives of SMEs, and Representatives of Local Community Organizations Involved in Development of Infrastructure or Public Services.






Speke Resort and Conference Centre Ltd, Munyonyo, Kampala, Uganda
 April 7-9, 2008

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Background


The notion of public private partnerships (PPPs) is often associated largely, if not exclusively, with large-scale national-level infrastructure undertakings such as utilities, national roads and highways, and airports and which involve large and well established enterprises which provide the services associated with such PPPs.  While this image of PPPs may reflect the majority of investments undertaken through PPPs, it also ignores some important areas of opportunities especially in emerging PPP markets such as in the sub-Saharan Africa region. First, while established infrastructure providers which are normally large firms are likely to continue to play a dominant role in PPPs, there is also significant scope for small and medium enterprises (SMEs) to become involved in PPPs particularly through sub-contracting in national-level projects and in even lead roles in some-sub national projects.  Second, while national-level utilities and infrastructure represent the bulk of PPP investments, the growing trend toward decentralization of service delivery introduces numerous PPP opportunities in non-traditional areas such as health, education and other social services.

There are several factors which are essential for further positive development in this area. From the view point of a social infrastructure delivery, Public Private Partnership is a form of output based performance contracting that seems to be an important option, and in many cases even the only option. Therefore, it can be reasonably expected that the area for which PPPs are being used in Africa will be growing in years to come. This challenge can be met by both the international investment community and African Small and Medium Enterprises (SMEs).  Despite the very important role of international companies in sharing their expertise and technology with African counterparts, SMEs are actually the main source of potential partnership sponsors. SMEs are contributing almost 90% to overall business operations in Africa and are responsible for over 50% of GDP and employment (in Uganda SMEs contribute close to 60%). SMEs are playing a critical role in providing goods and services to lower income communities in Africa, and further development of Public Private Partnership in this region has to support SME’s delivery and financial environment.
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Objective

The seminar will also focus on providing a networking platform and ideas sharing arena by providing a discussion forum for participants to discuss topics such as: challenges and options to improve financial intermediation, increase access to credit, and long term financing, using local SMEs participation in the development of Public Private Partnerships.

  • Give participants a profound appreciation of the important role of local private investors, SMEs, and community organizations as vital PPPs sponsors, and enable them to familiarize with financial and private sector institutional and regulatory requirements. 
  • Provide a forum for dynamic discussion and participative exchanges of ideas and experiences. The Forum will also enable participants to examine a range of steps and measures that can be applied, to improve the institutional and regulatory environment for the private sector sponsors, thus enabling efficient mobilization of funds available for infrastructure and public services delivery.  The way to leverage local finance and private resources will be discussed in the context of issues including primary access to long term project financing and availability of tools for mitigation of financial risks.
  • Highlight the benefits of the alternative financial instruments and new mechanisms to improve financial intermediation, increase the availability of bank credit and long term financing at reasonable cost for local and small /medium operators, and foster development and growth of local SMEs.
Target Audience


The Seminar will target both the public and private sector community in Uganda and Anglophone Africa.  Within the private community, the Seminar will be most beneficial for leading practitioners from SMEs, and potential private sector sponsors of Public Private Partnerships.
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Conference Overview
(click below for detailed agenda)

Speaker Bios

WB Resource Persons

Day 1

Role of PPPs in Infrastructure Development in Africa

Day 2

Role of PPPs in Social Infrastructure
Day 3Opportunities for SMEs in PPPs




Contact Information:

Mr. Filip Drapak
Senior Private Sector Development Spec.
Public Private Partnership in Infrastructure
World Bank Institute
Tel: +1-202-473-4950
fdrapak@worlbank.org

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