Sub-Saharan Africa (SSA) needs to invest 1.5-2.0 percent of its gross domestic product(GDP) on roads annually, over at least five years, which amounts to typically a threefoldincrease in spending. Otherwise the road network will continue to pose a majorimpediment to achieving the first goal of the Millennium Development Goals (MDGs):halving income poverty estimate of 1990 by the year 2015. However, transport is butone of the sectors yearning for increased public funding; there is competition fromsectors like health and education. It is therefore imperative that the much neededfinances are drawn from the private sector. This paper explores ways of capturingprivate finance, and management expertise, for road network management. The paperstarts with an exposition of the relationship between roads and equitable economicgrowth in SSA. The state of the SSA road network is then discussed. It is observed thatall-weather roads constitute only approximately one quarter of the network. The poorstate of the network is attributed to the widespread notion that roads are a public good.It is argued that this is a delusion that must be dispelled. A change in attitude wouldmake the heavily trafficked roads attractive to private finance; create fiscal space for lowvolume roads; and subsequently lead to a sustainable road network. The future ofdomestic equity and debt markets - key drivers of private infrastructure financing - isexplored. Lessons on enhancing SSA domestic markets are drawn from Asia. Thepaper then presents emerging success stories in private road financing in Africa.Benefits of maturity in private infrastructure financing, based on the UK experience, areoutlined. The paper concludes that road space should be treated as a private good,subject to market forces of demand and supply. Where demand is high, road spaceshould be packaged and taken to the marketplace.
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