Share
COVID-19: How public-private partnerships can help bridge Kenya's infrastructure gap
According to the World Bank, Kenya faces an infrastructure financing gap of approximately $2.1 billion annually. Public-Private Partnerships are considered crucial in closing in this gap and the government plans to raise $2 billion in the financial year 2020/2021 through PPPs to fund key infrastructure projects. Isaac Otolo, Director Advisory Transactions at PwC spoke to CNBC Africa for more.
Wed, 22 Jul 2020 10:26:21 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Kenya faces an infrastructure financing gap of approximately $2.1 billion annually, with the government turning to PPPs to raise funds for key projects.
- The COVID-19 pandemic has led to a reprioritization of infrastructure projects, with a focus on attracting private sector investment through PPPs.
- Issues surrounding funding availability, investor confidence, and government efforts to streamline the PPP approval process are key factors influencing infrastructure development in Kenya.
Kenya, like many countries in Africa, is facing a significant infrastructure financing gap, with the World Bank estimating it to be around $2.1 billion annually. In an effort to bridge this gap, the Kenyan government is turning to Public-Private Partnerships (PPPs) to raise funds for key infrastructure projects. Isaac Otolo, Director of Advisory Transactions at PwC, spoke to CNBC Africa about the challenges and opportunities facing the country's infrastructure sector amidst the COVID-19 pandemic. Otolo highlighted the impact of the pandemic on infrastructure projects, noting a general slowdown in economies across the region as governments introduce stimulus packages. This has led to a reprioritization of heavy infrastructure projects, with a focus on attracting private sector investment through PPPs. Despite the challenges posed by the pandemic, Otolo remains optimistic about the future of infrastructure development in Kenya. He emphasized the importance of PPPs in closing the financing gap and discussed the government's plans to raise $2 billion in the financial year 2020/2021. While acknowledging the challenges in raising funds in the current environment, Otolo expressed confidence in the availability of funding from both the public and private sectors. He also highlighted the government's efforts to create a more attractive environment for investors, including streamlining the approval process for PPP projects. In conclusion, Otolo emphasized the need for resilience and quick recovery to ensure that the economy can support the necessary investments in infrastructure. Despite the uncertainties brought about by the pandemic, he believes that with time, Kenya will see an uptick in infrastructure activity, supported by interventions from local and international agencies. The road ahead may be challenging, but with strategic partnerships and innovative financing solutions, Kenya has the potential to address its infrastructure needs and drive economic growth.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.