The extent of private sector participation varies significantly across sectors, and the lessons learned must be nuanced accordingly (see table). Whereas some sectors display a significant degree of private sector participation leading to positive outcomes (mobile telephony, power generation, airports and ports), results in other sectors have been mixed (roads, power, and water supply). A relatively high percentage of private sector contracts have been prematurely cancelled, particularly for power and water. In all infrastructure sectors, contract negotiation, monitoring, and enforcement have proven more time-consuming and difficult than expected.
Despite difficulties, there have been considerable gains from private participation. A higher degree of private sector involvement is associated with higher labor productivity, though the link is statistically significant only in the case of electricity and ports, and somewhat higher cost-recovery ratios. In telecommunications, the countries with above-average private involvement display higher access both in the fixed and mobile segments of the market. And more extensive private involvement in ports is associated with above-average technical efficiency.
Overview of African experience with private sector participation in infrastructure