Olive Kabatwairwe

At CoST – the Infrastructure Transparency Initiative – we know the private sector plays a critical role in ensuring transparency and accountability in infrastructure development; both in terms of playing their part in increasing transparency and accountability in the project cycle as well as the invaluable insights they can offer on the barriers currently in the way and how multiple stakeholders can do things differently.  

If we can get this right, it is not just citizens which stand to benefit but the private sector could benefit from an increase in fair competition including ensuring performance is rewarded over corruptive or mismanaged practices, reducing reputational risks from corruption associations, increasing access to private capital and reopening markets.  

It will also increase trust and efficiency in the infrastructure sector where research shows that an estimated third of budgets are lost due to inefficiencies, but over half of the losses could be recovered through better infrastructure governance. The results highlighted key areas where increasing transparency and accountability could reduce inefficiency costs – including value for money for infrastructure projects, reduced corruption and increased skills and capacity.  

Myself and colleagues at CoST worked with our 21 members to engage the private sector in their countries/region/city through carrying out perception surveys across 14 countries in Africa and Latin America followed with more in-depth discussions. Given the trust that we have worked hard to build with the private sector, 214 respondents shared their candid views: including that: 

• Only 14% of respondents in African and 16% of respondents in Latin America thought companies compete on a level playing field. Concerns raised included perceptions of corruption, bias in bid evaluations, lack of transparency, and procedures that are either overly complex or easily manipulated. 

• 41% of the respondents in Africa and 60% in Latin America indicated uncertainty of the adequacy of anti-corruption measures, with many expressing sanctions to deter corruption in the sector are not enforced. Respondents were uncertain about whether anti-corruption measures are effective or consistently applied, revealing a disconnect between formal frameworks and real-world implementation. 

• Most private sector actors didn’t believe that infrastructure projects meet the needs of citizens. Respondents expressed doubts over whether projects delivered value for money, and a lack of sector capacity to meet quality standards.  

• Around 70% of respondents in both regions confirmed that their organisation has a code of conduct, but many expressed concerns around integrity standards and enforcement. 

• 58% of respondents in Latin America, and 47% in Africa expressed that projects were rarely delivered on time.  

• Respondents in Africa and Latin America consistently identified the bid evaluation, contract award and shortlisting as the most corruption-prone stages. 

Experiences shared at the workshops highlighted that most companies operate in silos, and there is a huge information and capacity gap in the market opportunities for them to engage and deliver. 

To raise awareness of these perceptions, myself and my colleagues at CoST have published the results of this work in a visually appealing and easy to use dashboard, ‘Private Sector Perspectives on Infrastructure’.  

These insights can be used by decision makers to ensure the voice of the private sector is embedded in a multi-stakeholder working approach to overcoming barriers to greater transparency in public infrastructure projects. The information can also be downloaded. 

One of the outcomes was the private sector agreeing to work to form and strengthen coalitions to drive infrastructure reforms.  

The private sector also contributed to our members’ action plans that will inform further discussions with their respective sector players from government and civil society through their multistakeholder groups. We also plan to undertake more research with the private sector in the future. 

This builds upon our existing work with the private sector, including as partners on the Galvanising the Private Sector among other partnerships, multi-stakeholder working, building private sector skills.

Olive Kabatwairwe is the Africa Regional Manager and Learning Lead for CoST International. She has over a decade of experience in gender, development and governance work across various disciplines majorly, infrastructure governance, public policy and social accountability.

She leads the growth and implementation of CoST – the Infrastructure Transparency Initiative in Africa. She leads the learning process for CoST members at a global level, enabling them to learn from different experiences. She supports members in Africa with implementation, advocacy for policy reform, monitoring and evaluation.