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Private and Financial Sector Development project

Thursday, 04 April 2019 14:13 Written by 
  • Location(s): Ghana, Sierra Leone
  • Type(s): Solution
  • Theme(s): Employment, Entrepreneurship, Peacebuilding, Innovation, Justice, Poverty Reduction, Public Private Partnership
  • SDG(s): 1. No poverty, 8. Decent Work and Economic, 9. Industry, Innovation and Infrastructure, 10. Reduced Inequalities, 16. Peace, Justice and Strong Institutions, 17. Partnerships for the Goals
  • Locations in Africa: Ghana, Sierra Leone
  • Types in Africa: Solution
  • Themes in Africa: Employment, Entrepreneurship, Peacebuilding, Innovation, Justice, Poverty Reduction, Public Private Partnership
  • SDGs in Africa: 1. No poverty, 8. Decent Work and Economic, 9. Industry, Innovation and Infrastructure, 10. Reduced Inequalities, 16. Peace, Justice and Strong Institutions, 17. Partnerships for the Goals
  • Types of ComSec Solutions: Solution

Summary

This project supports Sierra Leone’s efforts to improve the country’s investment climate, generate more local and foreign investments, and build the Government’s capacity to enter into sustainable and beneficial public-private partnerships. It also aims to strengthen the capacity of Bank of Sierra Leone (the central bank) to supervise and support financial inclusion and access to financial services in the country.

Challenge

The instigation of the private sector’s role in the development of the country has been a key strategy of the Government of Sierra Leone, including in its current Medium-Term National Development Plan (2019-2023), dubbed “Education for Development”. Indeed, in order to meet critical challenges to sustainable development, such as poverty, youth unemployment, local economic development and environmental protection, the governmental efforts need to be supported by the active involvement of private actors, including in financial terms. Yet, the Government lacked the appropriate human resources needed to adequately unleash cooperation and partnerships with the existing underdeveloped private sector.

Solution

The overarching aims of the Private and Financial Sector Development project are:

– To improve the delivery of public services;

– To provide inclusive access to financial services;

– To expand income opportunities for the poor;

– To meet infrastructure needs;

– To increase the Government’s revenue-mobilization levels; and

– To promote and enable market-based public-private partnership (PPP) solutions, at both national and local levels, to help address pressing development challenges.

The main accomplishments of the project so far include:

– The development and finalization of the Public-Private Partnership Act, which was passed in Parliament in 2014.

– The establishment of institutional and regulatory frameworks for PPPs at the Office of the President, including the creation of a dedicated Public-Private Partnership Unit, to play a key role in ensuring that the Government attracts and benefits from private investment projects. The PPP Unit staff have been equipped with skills in economic viability analysis, best practices in procurement and effective negotiation strategies. In particular, four staff of the PPP Unit were trained in Ghana at the African Institute of Management Science in 2018, on identifying and appraising PPP projects and developing PPP policies. Trained staff of the PPP Unit have been deployed for instance in the implementation of two solar- and hydro-power projects, while overall there have been an improvement in the preparation of tender documents by the procurement staff of targeted ministries, departments and agencies, better management of the procurement process and greater participation in negotiations.

– The strengthening of the capacity of Bank of Sierra Leone to supervise and support financial inclusion and access to financial services, as well as to carry out research on inclusive growth and financial-policy analysis. The project has also supported the upgrading of the Bank’s ICT infrastructure, to improve management and oversight of an inclusive digital financial system, which should in turn allow the Bank to develop more robust capital-market operations.

– The elaboration of a range of PPP-related literature. Overall, improved familiarity and expertise with the PPP model have increased innovation in targeted local councils. A variant of the model – public-private-community partnership (PPCP), which explicitly involves the local community – has enhanced local infrastructure and service delivery, increased employment, and improved the revenue base of local councils. Makeni and Kenema city councils, for example, increased revenue collection in 2017 by an average of 50%, compared with a 25% increase in the previous year.

Provider Country: Ghana

Beneficiary Country: Sierra Leone

Supported by: UNDP and UNCDF

Implementing Agency: Public-Private Partnership Unit (Office of the President of Sierra Leone) and Bank of Sierra Leone

Project Status: On-going

Project Period: since January 2011

Contact Person: Milton Korseh-Hindowa; Economics Specialist; UNDP Sierra Leone, This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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