REVISITING THE LOGIC OF PRIVATISATION: THE AFRICAN EXPERIENCE

Abstract

Many countries, in an attempt to address public sector inefficiency, adopted privatisation, the transfer of ownership and control of public assets and services to the private sector. Privatisation is premised on the logic that private companies are more efficient and effective in managing resources, thereby improving service delivery. However, critics argue that privatisation does not always lead to efficient and effective service delivery. Existing studies on privatisation often provide mixed results, influenced by variations in regional contexts, implementation strategies, and sector-specific dynamics. Therefore, a comprehensive reassessment of the logic of privatisation is necessary to inform future policy decisions. Thus, this research interrogates the logic of privatisation and ascertains which takes precedence in privatised public enterprises: profit or efficiency. This research employed a qualitative approach that included a comprehensive review of the literature on privatisation, using the privatisation experiences of Zambia, Nigeria, Kenya, and Tunisia to interrogate the conceptual leanings and identify the dominant motivation of privatised public enterprises. Findings revealed that investors' personal spheres determine their orientation towards profit maximisation rather than efficiency. The study concludes that privatisation without consideration of other intervening variables would not achieve efficiency.