African governments have realised that they cannot finance infrastructure projects based on tax revenues and loans. They now realise that they must look into working with the private sector. A recent report by the Africa Development Bank stated that African countries need to invest between $130 to $150 billion a year to close the infrastructure gap. Taxation and loans cannot fill this gap; the private sector must come into play.
“Africa has an advantage that it has never had before. The cheapest electricity in the world today, is daytime solar in Africa.
If we have the potential for the cheapest electricity, we also have the potential for the cheapest transportation. 40 percent of the national reserves of foreign currencies are used to purchase and import petroleum products. If a large amount of that cost is alleviated in African countries, it creates a system that is immune to fossil fuel-based inflation.”
Kenya is well ahead of its neighbors in the region when it comes to infrastructure, but we still have a long way to go to catch up with developed countries. Our country has seen a boom in infrastructure projects nationwide spearheaded by the current regime. Even with the coming of the pandemic, we have continued with a flow of projects.
With issues like rising food and petroleum prices coming up, there could be fewer funds available for projects. Life must move on though because we will still need to build infrastructure. So we plan to be adaptable to changing economic and political times.