Graphic Business/Stanbic Bank Breakfast Meeting: ‘PPPs best option to close infrastructure gap’
Banking and finance consultant, Dr Richmond Atuahene, says the government engaging with the private sector to initiate and undertake major infrastructure projects in the country is the way out under the current economic conditions.
Giving meaning to the relevance of Public Private Partnership (PPP), he said the concept presented the best financing option for accelerated national development.
He said PPPs enhance rapid development and guarantee the financing of projects and developments in country.
He, however, cautioned that the marriage of the government and the private sector must be devoid of partisan and political influence to ensure its smooth implementation.
“For it to be effective and workable, the government must not overwhelm and overburden the private entity supporting the project and must not antagonise it,” he told the Graphic Business in an interview in Accra last Friday.
He revealed that in some countries, such as Singapore, it is the private sector that constructs roads, tars them and tolls drivers and motorists who ply that road.
His comments come ahead of today’s Graphic Business-Stanbic Bank Breakfast Meeting on the theme: "Public-Private Sector Partnership, Financing Option for Sustainable Development".
Ghana’s private sector
According to Dr Atuahene, Ghana's private sector is struggling to partner with the government to finance national development due to its weakness, which is further exacerbated by the state's overwhelming influence.
He asserted that a historical socialist mindset right from independence, which ensures the state or government provided for the citizenry everything, including catering for national development with little or no private sector input, has affected the national psyche and made the private sector an irrelevant entity in national development.
Dr Atuahene noted that the situation is in stark contrast to Nigeria, where the private sector is thriving with minimal government interference. He attributes this disparity to the need for a change in mindset to foster a thriving private sector in Ghana.
“If Aliko Dangote can build about $12 billion oil refinery with no government interference likewise Mike Adenuga and co, then we should be able to learn a thing or two from them, as to why their private sector is thriving,” he said.
He called on the government to make it easier for the private sector to thrive through tax rebates and cuts.
“Until we change our mindset and realise that the private sector is truly the engine of growth and can spur national development, we are going to struggle with our national development,” he told the Graphic Business in an interview in Accra last Friday.
To revitalise the private sector, Dr Atuahene advocated for a reduced state influence, allowing businesses to operate independently and drive economic growth.
This, he believes, will enable the private sector to partner effectively with the government to finance national development.
Return of Breakfast Meeting
The Graphic Business Stanbic Bank Breakfast Meeting is set to return for another educative and exciting edition, featuring Vish Ashiagbor, Country Senior Partner at PwC Ghana, as the lead speaker.
The event, scheduled to take place on January 28 at the Labadi Beach Hotel in Accra, promises to be an enlightening forum for stakeholders in the public and private sectors.
On the theme: "Public-Private Sector Partnership, Financing Option for Sustainable Development", Mr Ashiagbor will share his expertise and insights gained from over 25 years of professional experience in transactions and deals.
He will also share with stakeholders, including chieftains in industry, private sector players and trade associations, bilateral development trade partners and various chambers of commerce operating in Ghana, on how the government can use PPPs to finance national projects and developments.