Financing Development Through Public Private Partnerships (PPPs) in Botswana

Abstract

Largely due to chronic fiscal stress since the recent global economic crisis, there are calls for alternative ways of financing economic development. Public Private Partnerships (PPPs) have been identified as such alternatives. There is an increasing awareness that the private sector is not a competitor but a strategic partner in the drive for economic development. Therefore, governments are leveraging on the benefits of PPPs. Using the case study of Botswana, which is experiencing revenue challenges as diamonds have not been selling well since 2008, this theoretical paper explores the possibility of using more PPPs to finance economic development. Grounded in interpretivist research methodology, using the survey research strategy and using secondary data sources in the form of a desk survey, it concluded that there is a case for the increased use PPPs to finance economic development. It further concluded that while there is demonstrated appetite for PPPs, to date, only a few projects have been procured through PPPs. Hence, moving forward, and given the deteriorating revenue situation, there is a need to use more PPPs to deliver economic development. Finally, the paper argues that there is a need to reform the current PPP legal-institutional architecture and bench-mark and peer-learn from best PPP practices in Africa such as South Africa and Nigeria and beyond.