KAMPALA, Uganda: Salesmen whistle at potential buyers of scores of vehicles shining in the afternoon sun. One truck might bring over $20,000 but it’s far from the “brand new” ride the salesman touts it to be while attempting to start the engine.
The truck is one of tens of thousands of second-hand vehicles imported each year into Uganda from Europe or Asia, especially Japan. In much of sub-Saharan Africa, the imports satisfy demand for mobility while many public transport systems are rudimentary and newer models are not affordable to many in the growing middle class.
But the used vehicles are a problem, say officials. They contribute the pollution burden on a continent that contributes far less than other regions to the emissions that cause global warming.
Africa has become “the burial ground of vehicles that run on fossil fuel as the West turns to electric and newer cleaner technologies,” said Philip Jakpor, an activist with the Nigerian branch of the group Friends of the Earth.
Many second-hand vehicles shipped to Africa from Japan are believed to have failed, or were about to fail, pollution tests there, according to the UN Environment Program. But in many parts of Africa such regulations are often poorly enforced, and rampant corruption ensures that used vehicles can slip by any controls.
The UNEP, which calls air pollution a “silent killer” in Africa that is responsible for about 7 million deaths each year, has warned that vehicle emissions are a major source of deteriorating air quality in booming cities.
More than 1.2 million used vehicles were imported into Africa in 2017, according to UN figures. Most were destined for Nigeria and Kenya, two of Africa’s largest economies. Both countries also have car-assembling plants.
“The West has refused to transfer technology or make the technology to transit to be cheap and accessible,” Jakpor said. “Our governments have equally failed to invest in renewables and transition, so we will have this dumping for a long time.”
In Uganda, more than 80% of all vehicles are second-hand imports. In part to stem the flow, legislation enacted in 2018 outlaws the importation of vehicles older than 15 years and imposes stiffer taxes on vehicles older than nine years.
A used vehicle made in, say, 2010 can seem new to both buyer and seller in the East African country without a single car-assembling plant and where rickety vehicles are ubiquitous. It’s not uncommon to see vehicles emitting a fog of dark fumes. Police frequently attribute deadly accidents to vehicles in dangerous condition.
“You cannot wake up and put a total ban” on used vehicles, said Dicksons Kateshumbwa, Uganda’s commissioner in charge of customs revenue. “There is a growing middle-income (class). Everyone who gets a job, and gets money, wants to drive.”
Taxes on used vehicles are “a key component” of the revenue agency’s overall collection targets, he said. He added there is no evidence suggesting that stiffer environmental levies on used cars cut into demand.
Car dealers in the Ugandan capital of Kampala told The Associated Press that demand for used vehicles remains solid because importers target certain vehicles that are much sought-after no matter how old they are. The Toyota RAV4 and Toyota Harrier are much-loved locally, for example.
“Ugandans are conversant with older models, so they are looking for those,” said car importer Amir Hussein of Cosmos Uganda Ltd. “For many people, it is their mindset: that old is solid, is good.”
Uganda’s government last year contracted two companies to inspect used vehicles before they are shipped. The head of the standards agency acknowledges the system is imperfect as not all vehicles are subjected to tests as they cross into the country. Inspectors based in Uganda only carry out spot checks.
Ben Manyindo, head of the Uganda National Bureau of Standards, called for a plan that eventually would lead to the banning of used vehicles from abroad.
The question of whether to impose import restrictions remains contentious despite wide recognition of the dangers of an unlimited flow of used vehicles into Africa, the continent least equipped to deal with climate-changing carbon emissions.
In Zimbabwe, where the government has tried and failed to impose restrictions amid resistance from importers and others, there is no age limit for imported cars. Used cars are not checked for emissions levels when they enter the southern African nation from ports in Tanzania, Namibia and South Africa, which notably allows the importation of used vehicles only for re-export to other countries.
Zimbabwe’s environment protection agency lacks the resources to conduct effective spot checks for emissions, and over the years the government has appeared fickle in its attempts to regulate the trade in used vehicles.
In 2010 the government banned the importation of vehicles older than five years but later backed down. In December the finance minister announced that older cars would pay less import duty than newer cars, sparking criticism from some lawmakers and environmentalists who argued the measure would encourage people to buy cars that are more harmful to the environment.
“The old cars have higher emissions and are dumped on us because they are no longer considered as fit for the roads in their countries of origin,” said Byron Zamasiya of the Zimbabwe Environmental Law Association, which urges stricter controls. “We should be incentivizing people to import newer cars than older ones.”
Used cars from Japan are so common in Zimbabwe that the business may be one of the few still profitable in a country reeling from serious economic woes. Zimbabweans spent over $5 billion importing used cars between 2006 and 2016, and an average of 300 pass through Beitbridge, the main border crossing with South Africa, according to official figures.
Open spaces in cities such as Zimbabwe’s capital, Harare, have been taken over by used-car dealers selling anything from small sedans to rundown buses following the collapse of the country’s once-vibrant car assembly industry. A usually unreliable public transport system also fuels demand for used vehicles among people who can still afford one.
Like Uganda, Nigeria restricts importations of vehicles older than 15 years, but importers working with corrupt officials can always beat the system, according to importer Motola Adebayo. He believes the ability to bribe customs officials has encouraged an influx of very old vehicles into Africa’s most populous country.
“Many of them are being used for commercial transportation,” he said of the imports. “Very old vehicles are now becoming the standard means of commercial transportation in Nigeria.”
Oke Ndubuisi, a taxi driver in Lagos, reasoned that “here in Nigeria, because people are paying very little as transport fares, you cannot easily recover the cost of your investment in a vehicle if it is an expensive one.”
The taxi he drives is one of many that contribute to air pollution in Nigeria’s bustling commercial capital.
“The prices of new vehicles will have to come down in order to address the problem of pollution caused by old vehicles,” he said.
Used cars keep Africans moving, but dumping concerns remain
https://arab.news/6c7fw
Used cars keep Africans moving, but dumping concerns remain
- UN Environment Program says many second-hand vehicles shipped to Africa from Japan fail pollution tests
- More than 1.2 million used vehicles were imported into Africa in 2017, according to UN figures
GCC offering investors ‘safe’ PPP deals; Saudi pipeline nears 300: FII
RIYADH: Global investors can find a “safe harbor” in the Gulf Cooperation Council as the bloc’s public-private partnerships pipeline offers “compelling” opportunities, according to a new report.
The latest document from the Future Investment Initiative Institute highlights how economies in the region are currently driving the next wave of PPP growth.
It cites findings from Partnerships Bulletin, which ranks Saudi Arabia as second in the global emerging markets pipeline for PPP projects up to July 2025, and also places Dubai in the top 10.
While that analysis claims the Kingdom has 98 PPP projects either formally published or announced, FII says Saudi Arabia has a further 200 currently awaiting approval.
The findings align with the goals outlined in the Kingdom’s National Privatization Strategy, launched in January, which aims to raise satisfaction levels with public services across 18 target sectors, create tens of thousands of specialized jobs, and exceed 220 PPP contracts by 2030.
The strategy also aims to increase private sector capital investments to more than SR240 billion ($63.99 billion) by 2030.
The FII report says that around 90 percent of FDI into Saudi Arabia now flows into non-oil sectors, from advanced manufacturing and tourism to green energy and digital infrastructure.
“That shift reflects deliberate policy choices to open markets, standardize regulatory frameworks and use public capital to de-risk new value chains,” says the document, adding: “The result is a kind of safe harbor in an otherwise low-growth, high-uncertainty world.”
It continues: “While global FDI has stagnated or declined in many regions, the GCC’s pipeline of planned infrastructure and industrial projects now exceeds $2.5 trillion, according to Boston Consulting Group data, with PPPs playing a central role in structuring and financing them. For global investors searching for yield, diversification and inflation-linked income, this represents a compelling proposition.”
Commenting on the FII Institute report, Sally Menassa, partner at international management consulting firm Arthur D. Little, said PPPs are a strategic necessity for delivering infrastructure at speed and scale, and described Saudi Arabia’s pipeline as a “powerful execution and financing tool.”
She added: “The Kingdom’s PPP momentum must remain focused on impact, value creation and execution excellence. PPPs should not be viewed merely as a funding mechanism, but as a structural tool to enhance infrastructure performance, attract investment and support sustainable economic growth in line with Vision 2030.”
Menassa said that Saudi Arabia’s National Privitization Strategy marks a shift from a project-by-project approach to institutionalization of efforts and value creation.
“By clarifying sector priorities, strengthening project selection criteria, and formalizing governance and investor pathways, the Strategy reduces uncertainty. This clarity enhances investor confidence and improves pipeline quality,” said the Arthur D. Little official.
She added: “PPP and privatization efforts in Saudi Arabia are not about divestment or the state shifting execution to the private sector, it is really about becoming more productive as a nation. It enhances efficiency, raises service standards, mobilizes private and SME participation, and attracts capital.”
Menassa further said that the strategy could help the Kingdom achieve stronger fiscal sustainability and higher private sector GDP contribution, both of which are critical components to accelerate the Kingdom’s economic transformation under Vision 2030.
Vijay Valecha, chief investment officer at Century Financial, believes input from the private sector across all stages, from design to construction and operations, improves the efficiency of project delivery and long-term operations in Saudi Arabia.
“Tighter governance through centralized management at the National Center for Privatization and PPP and a more streamlined process, including template contracts, a clearer regulatory environment, and a transparent pipeline, is likely to improve delivery speed,” said Valecha.
He added: “This means faster delivery of big projects like Red Sea resorts or Neom, with private firms handling operations to drive innovation. Ultimately, the strategy supercharges diversification by making the private sector the main engine of growth, aligning perfectly with Saudi Arabia’s push for a vibrant, non-oil economy.”
The FII Institute added that the global flow of FDI is increasingly concentrated in the Gulf Cooperation Council region, driven by ambitious national transformation agendas and deep pools of sovereign wealth.
Tony Hallside, CEO of STP Partners, outlined several factors that are boosting the PPP landscape in the region, which include large infrastructure demand from Vision-level programs and urbanization.
“Government frameworks that standardise PPP procurement are making projects bankable. Strong regional capital pools and sovereign support will mitigate risk and attract global players. In the GCC, Saudi Arabia’s pipeline itself is one of the largest in the Middle East, indicating strong investor interest,” added Hallside.
Underscoring the role of growing PPP in Saudi Arabia, the FII report said: “A decade ago, the Kingdom’s solar capacity was negligible, despite its vast solar resource. Through early anchor investments, long-term power purchase agreements and support for national champions, the state seeded a competitive renewables market that now attracts global players on purely commercial terms.”
Valecha said that clearer PPP laws, standardised contracts and dedicated PPP units have reduced execution risks and made projects more bankable for global infrastructure funds and developers in the GCC region.
He added that rapid urbanization, a young and growing population, rising data center power demand and energy transition projects create predictable, long-duration cash flows in the region.
“This combination of policy support, fiscal necessity and structural growth is why the GCC is emerging as one of the fastest-growing PPP markets globally,” said Valecha.
Key Saudi PPP projects
Yanbu 4 Independent Water Project - supplying water to Medina and Makkah
Location Yanbu, Red Sea coast
Companies involved: Engie, Mowah, Nesma, Saudi Water Partnership Co.
Cost: $826.5 million
Expected delivery date: Operational as of 2024
Hadda Independent Sewage Treatment Plant
Location: Makkah Province
Companies involved: Metito Utilities, Etihad Water and Electricity, SkyBridge Limited Co., Saudi Water Partnership Co.
Expected delivery date: 2028
As Sufun Solar PV Independent Power Project
Location: Hail region
Companies involved: TotalEnergies, Aljomaih Energy & Water, Saudi Power Procurement Co.
Expected delivery date: Expected to connect to the grid in 2027
Construction of greenfield international airports
Location: Taif, Abha, Qassim, and Hail
Companies involved: Currently in the planning stage; investors are being sought
One-Stop Station Project
Location: Intercity road network across the Kingdom
Companies involved: Saudi Arabia’s Roads General Authority and National Center for Privatization & Public-Private Partnership announced a full list of qualified bidders in February.
King Salman Park
Location: Riyadh
Companies involved: King Salman Park Foundation, Ajdan Real Estate, Sedco Capital
Cost: $1 billion
Project: Madinah-3, Buraydah-2, and Tabuk-2 Independent Sewage Treatment Plants
Location: Madinah, Buraydah, and Tabuk
Companies involved: Acciona Agua, Tawzea, Tamasuk, Saudi Water Partnership Co.
Cost: $627 million combined
Riyadh Metro Line 2 Extension
Location: Riyadh
Companies involved: Royal Commission for Riyadh City, Arriyadh New Mobility Consortium, led by Webuild. Riyadh Metro Transit Consultants (JV between US Parsons and France’s Egis and Systra) as project management and construction supervision consultant.
Cost: Up to $900 million
Expected delivery date: 2032
The crucial role of emerging markets
According to the FII Institute report, the ability to deliver resilient infrastructure, expand digital connectivity and accelerate the energy transition will increasingly depend on the strength and legitimacy of PPPs, as fiscal space tightens and investment needs rise.
FII estimates a $5 trillion global infrastructure financing gap by 2040. It also points to significant regional shortfalls, including an estimated $3.7 trillion gap in the US and an annual $130 billion to $170 billion gap across Africa. In this context, PPPs are moving from a transactional procurement route to a central model for financing and delivery.
The report highlighted that emerging markets, including Saudi Arabia, are currently driving the next wave of PPP growth, with spending across low-and middle-income countries reaching $100.7 billion in 2024, up 16 percent year on year, according to figures from the World Bank.
Moreover, emerging markets now represent around 61 percent of global PPP activity by gross domestic product share.
According to Partnerships Bulletin’s findings up to July 31 2025, the Philippines leads the emerging-market pipeline with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71, and Peru with 54 projects.
Greece has 42 projects in the pipeline, followed by Dubai at 28, Kenya at 25, Colombia at 24, and Pakistan at 14.
PPP: An engine of growth
When capital was cheap, PPPs were often treated as an optional extra – a way to shift specific projects off the public balance sheet, or to import private-sector efficiency into construction and operations, the FII report said.
However, now, nations consider PPPs as a central hub of their economic strategy, as they enable the state to stretch every dollar of public investment using private capital, while retaining strategic control over what gets built, where and to what standard.
“The real differentiator is complexity. When a project presents significant financial uncertainty or unpredictable demand, or if there’s a high level of climate exposure or technological risk, a PPP can give leaders the tools to manage those issues without slowing things down,” said Bob Willen, global managing partner and chairman of Kearney, said in the FII report.
Erik Ringvold, chief business development officer at Regional Voluntary Carbon Market Co., was quoted in the report as saying that carbon markets will benefit through PPPs, as deepened public-private partnerships could help achieve progress toward national emissions targets, while simultaneously creating economic opportunity and catalyzing new green industries.
“Saudi Arabia has made large strides toward an emissions compliance system, with an operational carbon standard in place, and an emissions trading system announced to be launched over the coming few years,” said Ringvold.
He added: “At VCM, we see a clear future carbon vision for Saudi Arabia. One ecosystem. One marketplace. One iconic collaboration – with the PPP model at the heart of its success.”
PPPs for investors and citizens
For investors, infrastructure-backed PPPs offer long-duration, often inflation-linked cash flows at a time when public markets are volatile and dominated by a narrow set of mega-cap technology stocks.
For citizens, well-designed PPPs can mean better services, more resilient infrastructure and faster progress toward climate and development goals, without unsustainable tax rises or austerity.
FII, however, cautioned that public consent is becoming decisive. Across seven countries, only 23 percent of citizens agree that PPPs “equally benefit everyone”, compared with 41 percent of business and government leaders.
Hallside said that public consent hinges on transparency, accountability, and visible service outcomes.
He added that governments should publish clear procurement frameworks, communicate cost-benefit and performance expectations in plain language, and measure user satisfaction and service quality over time — “reinforcing that PPPs deliver tangible improvements in infrastructure and services.”
Menassa echoed similar views and said that communication with the public is not sufficient, but the performance and execution phase holds the key to PPP projects.
“Winning public opinion for PPPs is rather a marathon not a race. It starts with building awareness and trust by providing transparency and demonstrating value for money, ensuring affordability and service quality of public services is maintained through strong regulatory oversight, and ensuring competitive, transparent procurement processes,” added Menassa.
According to the Arthur D. Little official, the public must see tangible improvements in service reliability, efficiency and accountability, and acceptance will follow.
“The world can’t afford to delay the infrastructure and energy transition investments that will determine prosperity – and planetary stability – for decades to come. Nor can it fund them through public budgets alone. Financing the future is, by definition, a joint endeavour,” added the FII report.
