Private-public partnerships (PPPs) are a globally recognized business model, hailed for their potential to drive economic growth and development.
Yet, in Uganda, they have been mired in inefficiencies, bureaucratic hurdles, and mounting frustrations.
Despite billions of shillings being invested by the government into various private ventures, the success of PPPs in Uganda has been far from certain.
The question remains: How can PPPs be turned into a sustainable, future-oriented model for Uganda's economic growth?
While private-public partnerships are not a new concept in Uganda, they have often faced backlash, leaving many wondering if they can truly become a catalyst for development.
The government continues to pour billions of shillings into such ventures, but investors often decry the inefficiencies and slow pace within the system.
Researchers, however, argue that PPPs are essential for sustainable growth.
In developed countries like the US, significant post-COVID investments in PPPs have yielded positive results, leading to the widespread belief that they could serve as a key driver of future economic prosperity.
But Uganda's experience has been far less promising.
According to experts, there are several models of PPPs that could help Uganda realize the full potential of private-public collaboration. These include:
- Build-Operate-Transfer (BOT): In this model, the government builds an enterprise and then transfers it to private management.
- Build and Own: A private individual or company runs the venture on behalf of the government, as seen in the case of the National Water and Sewerage Corporation (NWSC).
- Concessions: Here, the government grants the private sector the right to operate a service, such as UMEME, Uganda's electricity distributor.
- Joint Venture: The government invests a substantial amount of money into a business and acquires shares, sharing ownership and management with private partners.
Experts suggest that these models could significantly improve efficiency, increase investment, and manage risk--all while improving accountability.
So why, despite these advantages, have PPPs in Uganda been so poorly executed?
One of the key criticisms of PPPs in Uganda is that they are often subjected to inefficient governance and lack of accountability.
According to Wakida, a researcher in the field, many PPP ventures receive billions of shillings due to directives from above, without proper structural planning.
This top-down approach results in disorganization and poor execution, with government institutions often failing to live up to their end of the bargain.
"There's a need for a clear modus operandi so that both parties know how to hold each other accountable," Wakida says.
"This includes protecting investors when the government falls short on its promises."
Nelson Tugume, the CEO of Inspire Africa Group, concurs, arguing that inefficiencies within the government system create significant barriers to success.
"Sometimes, we face so much resistance from the system that we lose valuable time in system inefficiency," Tugume explains.
For Tugume, the potential of PPPs is clear.
"If these ventures were handled efficiently and free from bureaucratic hurdles, they could transform Uganda into a private-sector-led economy," he adds.
"We need to streamline the process, otherwise, it's the struggles and frustrations that discourage investors."
Despite the challenges, many are optimistic about the role PPPs could play in Uganda's economic future.
MP Joel Ssenyonyi acknowledges that while the government's approach to PPPs has often been flawed, the concept itself is valuable.
"We don't have issues with PPPs, but we definitely need to streamline for accountability purposes," he states.
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For Ssenyonyi, the key to successful PPPs lies in transparency and a focus on how the Ugandan people can benefit.
"The government must address the fundamental questions of who benefits from these ventures and how Ugandans can truly see the returns," he says.
Uganda's experience with private-public partnerships has been far from smooth, but the potential for growth remains.
By addressing inefficiencies, improving accountability, and streamlining the process, the government can create an environment where investors are encouraged and projects are set up for long-term success.
The key to unlocking the power of PPPs in Uganda lies in transforming the current system to prioritize transparency, collaboration, and sustainable growth.
If these adjustments are made, private-public partnerships could become the cornerstone of Uganda's economic future, driving development and prosperity across the nation.
