Contracts can be signed, and capital can be deployed, but without trust, every partnership is built on shaky ground. The solution isn’t just better deals. It’s a deeper engagement with the very people we aim to serve: communities.

For years, the term “Public-Private Partnerships” (PPPs) in South Africa was often met with scepticism. The private sector was viewed with distrust, perceived as a profiteer at the public’s expense. Today, a significant and necessary shift is underway. Driven by fiscal constraints and an urgent need for infrastructure and service delivery, the government is increasingly embracing the private sector as a genuine partner for development. This is a welcome change and at Old Mutual Alternative Investments, we are at the heart of this evolution, focusing on development infrastructure that delivers both social impact and sustainable returns.

The trust deficit between the public and private sectors is indeed narrowing. This is born out of necessity and proven through models like the Renewable Energy Independent Power Producer Procurement (REIPPPP) programme, which has demonstrated that well-structured partnerships can work and address South Africa’s sustained energy crisis.

The foundation of this improved trust lies in robust governance, clear risk-sharing (where government manages political and regulatory risk and the private sector brings capital and operational expertise), and a shared commitment to transparency.

However, a critical trust deficit remains, stemming from the perceptions held by the broader public and the very communities that PPPs are meant to serve. There is profound wariness that PPPs will not deliver tangible, lasting benefits to them, fueling a narrative of state assets being leveraged for external gain. Too often, projects are seen as the “family silver” being sold off to the private sector, with benefits accruing elsewhere. This perception gap is perhaps the single greatest barrier to the long-term success and sustainability of PPPs. If the community does not buy into a project, its social licence to operate is perpetually at risk.

So, how do we bridge this gap?

The solution lies in moving beyond the traditional public-private dyad to a more inclusive model: Community-Public-Private Partnerships. The government must take the lead in proactive, ongoing community engagement. This must not be viewed and executed as a box-ticking exercise during the approval phase, but as a core, sustained component of the project’s lifespan.

This means educating communities about the project’s intent, its long-term benefits, and their role within it. The goal is to transform communities from passive recipients or sceptical observers into active stakeholders and guardians of the project’s success.

We need more homegrown examples of projects developed through a partnership involving the government, a private operator, and the local community. Where the private and public partners facilitate the infrastructure, but the core operations and long-term benefits are transferred to the community. In this manner/model, communities benefit directly, and in turn, they protect and nurture the asset as their own. This is the epitome of keeping the “silver” at home, facilitating empowerment through genuine ownership and participation. This model must become our benchmark, not our exception.

For us, our investment philosophy is intrinsically linked to this idea of sustainable, embedded impact.

We are not passive capital providers; we are active designers of sustainability outcomes. Our focus areas in education, social housing, and social impact infrastructure are chosen because they address foundational societal needs and align with broader Sustainable Development Goals, adopted by all United Nations members, including South Africa. We design these outcomes into the fabric of our contracts, ensuring measurable commitments to job creation, the development of small and medium-sized businesses, women’s empowerment, and skills transfer. This impact is not static; it is reviewed and adapted over a project’s lifecycle to ensure we are addressing the most pressing needs.

Entering a PPP, particularly one that can span 25 years or more, requires unwavering discipline on certain non-negotiables. For us, these are:

• Quality of institutions: We partner with government entities that demonstrate capacity, or where we can help build it.
• Impeccable governance and clean audits: Strong, transparent governance structures are the bedrock of trust and the antidote to scandal and mismanagement.
• Skills transfer and ongoing education: This is the cornerstone of sustainability. We invest in people, ensuring that both our empowerment partners and public sector counterparts have the knowledge to manage and uphold the project through political and administrative changes.

These principles are also central to how we de-risk capital and generate returns for our clients. The gradual move away from blanket government guarantees is a positive shift, encouraging more rigorous due diligence and innovative blended finance structures. By carefully allocating different tiers of capital (from development finance to commercial investment), we balance risk appropriately without relying on state-backed guarantees. This ensures we commit only to projects that are fundamentally viable, commercially sound, and socially robust.

The path forward is clear. The next frontier for PPPs in South Africa is to deepen trust at the community level. This requires the government to lead as the primary liaison, creating genuine tripartite partnerships (government/private sector/communities). For our part, we are actively cultivating a pipeline of social impact projects and seeking like-minded partners — in both the public and private spheres — who share this vision of trust-based, community-centred development.

We have the model, the capital, and the expertise. What we must collectively build is the connective tissue of trust that transforms infrastructure projects into lasting community assets. The success of our shared growth trajectory depends on it.

Mukuze is a Senior Investment Professional at Old Mutual Alternative Investments, focusing on development infrastructure and impact investing.