At the global level, contextual key drivers for the use of PPPs have included exponentially growing populations and the widely observed urbanization phenomena. Although PPPs might not represent a solution to be applied across all development contexts, there are concerns around the ability of PPPs to meet poverty eradication and other development goals. Furthermore, the success or failure of PPPs depends to a large extent on the development of suitable government organizations and laws and on sufficient know-how to enable appropriate pre-investment work and structuring of projects.
Multilateral development Banks (MDBs) have lately focused on infrastructure and its demonstrated effect on achieving sustainable economic growth in developing countries. In this context, for most MDBs, PPPs are of great relevance. Several MDBs explicitly feature PPPs either in stand-alone strategy documents or as integral part of sectorial/corporate strategies. The World Bank and the three Regional Development Banks (AsDB, AfDB, and IaDB) have PPP approaches which recognize the importance of both upstream as well as downstream support. These approaches to delivering their respective PPP responses also differ, from rather central with one unit managing the PPP agenda to an explicit matrix approach, such as in the AsDB or the World Bank Group.
Creating an enabling environment for PPPs emerges as a common success factor in many countries. The work of all MDBs acknowledges the significance of or directly supports the creation of an enabling environment, including policy and sector reform. In this perspective, although a unified PPP legal framework is lacking in some places, most African countries have adopted a national policy or have at least a PPP law in the pipeline, particularly during the last six years. These legal frameworks and national policies are expected to create more opportunities for PPPs and facilitate the implementation of PPP operations.