Can Public–Private Partnerships Leverage Private Investment in Agricultural Value Chains in Africa? A Preliminary Review
Public–private partnerships (PPPs) may be one way of increasing the level of private sector investment into poorly performing agricultural value chains. This paper considers a range of PPP mechanisms that respond to different market failures affecting such chains and draws on principal–agent theory to illustrate the challenges. It reviews emerging experience with a number of these mechanisms along with experience from other sectors that may shed light on “generic” problems of implementing PPPs in Africa. While finding some positive impacts on investment, it notes that state failures can also undermine PPP effectiveness. As the evidence base is still limited, it calls on organizations promoting innovative PPPs to disclose available information for critical examination.
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