World Bank’s Pryce on how Rwanda can attract more private sector investment to fund infrastructure development

Rwanda is on a quest to bolster private sector investment in infrastructure development, as highlighted in the latest World Bank Rwanda Economic Update. The report indicates that private financing for infrastructure needs to increase significantly from its current share of about one-third of the total commitments to attain the country's lofty development objectives. In an exclusive interview with CNBC Africa, Rolande Pryce, the Country Manager of World Bank Group Rwanda, shed light on the challenges and opportunities in attracting more private sector investment. Pryce emphasized the importance of motivating the private sector to bridge the existing infrastructure investment gap, which stands at a substantial 55%. While acknowledging the strides made by the Rwandan government in creating an investor-friendly environment, Pryce underscored the need for more efforts to tap into untapped potential in domestic capital markets. The focus also rests on leveraging foreign direct investment and fostering domestic private capital mobilization to channel funds into the country's infrastructure sector. Despite the country's favorable rankings in ease of doing business, there is still room for improvement in reducing the cost of doing business, particularly in areas like energy rates. Pryce highlighted the significance of enhancing public investment efficiency and building a robust pipeline of public-private partnership (PPP) projects to attract investors looking for value for money. The World Bank stands ready to support Rwanda in implementing critical ideas aimed at boosting private investment in infrastructure development. While discussing the impact of the COVID-19 pandemic on investor sentiment, Pryce pointed out that most countries are grappling with striking a balance between safeguarding public health and reviving economic activities. She commended Rwanda's proactive measures in managing the health crisis while maintaining a conducive environment for investors. Pryce emphasized the need for sustainable macroeconomic policies to instill confidence in investors and reduce the country's vulnerability to external shocks. Overall, the collaboration between the government and investors in charting a medium to long-term investment strategy remains paramount for Rwanda's sustainable development agenda.