Corruption remains a
serious challenge in Public-Private Partnerships (PPPs). It creates legal
uncertainty, deters investment, and destabilizes infrastructure projects. In
2024, Kenya cancelled airport and energy contracts with the Adani Group, an
Indian multinational conglomerate. This followed a United States (US)
indictment for bribery in an unrelated Indian matter. No corruption was proven
in Kenya. Still, the termination exposed the fragility of PPP governance. It
showed how global anti-corruption laws, reputational risk, and weak domestic
oversight can trigger sudden investment shocks across Africa.
This article draws on
the Adani case to highlight weaknesses in African PPP governance. It considers
the extraterritorial reach of the US Foreign Corrupt Practices Act (FCPA). The
FCPA often intersects with weak domestic enforcement, exposing gaps in how
African states balance public accountability with investor protection.
The article shows how
reputational damage and political decisions can lead to abrupt contract
terminations. These risks affect both governments and private investors.
To improve legal
certainty, the article advances a combination of legal and institutional
reforms. Governments can enhance contractual stability by embedding key
provisions in PPP agreements, including reputational risk clauses, structured
exit mechanisms, and anti-corruption disclosure obligations. Regional
institutions and frameworks such as the African Union (AU) and the African
Continental Free Trade Area (AfCFTA) are positioned to play a critical role in
reinforcing these efforts by harmonizing standards, facilitating cross-border
regulatory coordination, and providing oversight mechanisms that transcend the
limitations of national legal systems.
By aligning contracts
with regional oversight, the article offers a realistic path to improve
transparency, protect investment, and build public trust in African PPPs.