Public-private partnership arrangements can play a vital role in propelling economic growth by providing well-planned, well-funded, and well-maintained infrastructure and public services; however, this partnership is at embryonic stage in Ethiopia, disclosed scholars.
Dr. Mesfin Belachew said that public-private partnership is an alternative vehicle for mobilizing resources to fund the much-needed infrastructural facilities as well as to deliver quality public services.
And of course, some piloting has been done in the past, not to realize public-private partnership. It is significant for trade facilitation and advancement of the living standards of the people and improvement of the ranking of ease of doing business of the country.
In the engagement of sub-sectors of public-private partnership, he noted that currently, public-private partnership is readied to engage in condominium housing, pavement of side roads, textile, garment and food fruit processing, unified billing of water, electricity, telephone services, housing Delivery Service Contract, Irrigation project, Prepaid Metering pilot project, Micro, Small & Medium Enterprises Development Communications and Information Technology, Urban Development and Construction Water and Energy.
Among the hurdles the public-private partnership faced so far, he pointed out that, when it comes to bidding and contractual process, bidding process is complex and designing a comprehensive contract proves demanding. Problems are manifest in maintaining stakeholder relationship, ensuring long-term collaboration and managing risks. Source of revenue is another headache.
“Public-private partnership has great opportunities on the commitment of the government to improve the rank of the country in the ease of doing business. It is good for achieving better efficiency and effectiveness. It has also opportunities for better knowledge of market in the sector, area of collaboration in almost all sectors,” he added.
As to him, the government should be committed to improve its service delivery to citizens and businesses in order to ease doing business in such a way that Information Technology is the best driver for electronically enabled nation and improved international ranking in the electronic government indexes.
The policy direction of the government regarding supporting homegrown economic facilitates creates conducive environment to the sector. Adding he stated that the playground is promising to advance the public-private partnership. The telecom liberalization will be a driver for achieving service excellences in information communication technology for reliable connectivity and affordability for business partnership services.
In having Ethiopia on the rank of ease of Doing Business, he indicated that in 2020 Ease of Doing Business rank of Ethiopia is having to 159 out of 190 courtiers, that Scored 48 percent in 2020 and 47.1 percent in 2019. Ethiopia scores low in time and procedure of each indicator. In this regard, Information Communication Technology can be a major enabler to improve response time and reduce procedures. Mauritius, Rwanda, Morocco, and Kenya are the top four from African in 2020 respectively. Sub-Saharan Africa Average has scored 51.8 percent in the transactions of starting a business, paying taxes, and enforcing contracts.
On the way forward to support ease of doing business, he mentioned that information communication technology has improved a lot its service to citizens and businesses by implementing a broad range of electronics services that will electronically interconnect users and the Government.
Single-window service is the best tool to improve the service delivery and integrate all the services from all public institutions as well as strengthen the public-private partnership.
Pertaining to the public and private sectors’ engagements in specific assignments, he remarked that it should be practiced in a manner of a win-win approach to ensure positive synergy in the delivery of public goods and services.
Electronically partnership harness for long term engagement between public and private sectors to share risks and increase the success of the projects. Public Private Partnership has to be entertained with cutting -edge technology intensives to achieve transparency and security; It as well has to be entertained by efficient management to bring service excellence and customer satisfaction.
Rsearcher at the Ministry of Technology and Innovation of Ethiopia, Dr. Gemal Mohamed on his part said that public private partnership should be implemented aggressively to change the socio-economic facet of the country.
In this regard, for instance, European countries have practiced in a well-grounded manner so that these countries could get satisfactory results, especially, in constructing highways and in the implementing pilot projects.
Added he indicated that while the governmental institutions have a set of capability to do tasks and managerial framework, the private firms have nurtured on motivational skills and setting plans. Therefore, harmonizing the public-private untapped potentials has a great meaning and undeniable influence for easing the business activities of the country.
As to him, compromising capability, experience, resources and risk management mechanism of the public-private tools is instrumental to build win-win cooperation to advance the economic performance of the country.
“Currently, public private partnership is apparent in the countries of Ethio-china, in most of light railways and express highways. This shows that Ethiopia has practiced public-private partnership with the “outsider” multinational cooperation in specific sub-sectors,” he added.
According to him, Ethiopia should realize public-pivate partnership with the local investors in the pilot projects of dams and other infrastructural sub-sectors. The government and private sectors should reach into agreement in the setting of legal and regulatory frameworks, contractual agreement, and ownership sharing and building institutional and social infrastructures. Enhancing joint ventures between the public and local investors is paramount to keep the national interest and to generate high incomes as well as increase gross domestic products.
He went on to say that prioritization should be highlighted on policy making and in the institution of governmental development agencies to enhance public private partnership, especially, between the government and local investors.
Of course, establishing public private partnership with multinational cooperation has unshakable contribution to transfer managerial ability, knowledge and skills as well as technical mechanisms and technologies.
He further noted that the government should open its door to encourage the local investors to maintain the national interest of the country. Involving multinational cooperation has also dysfunctional effect in impose their own interest and pressuring their “alternative” policies.
The government should do its level best to beef-up the muscle of local companies for the benefit of the country in the program of home-grown business. So, public-private partnership is an indispensible tool to alleviate the economic school of thoughts of pure privatization and pure government controls systems.
The Ethiopian Herald Sunday Edition, February 2/2020
BY MEHARI BEYENE
