By GEOFFREY IRUNGU
In Summary
- IMF boss Christine Lagarde says high quality infrastructure could be a magnet for foreign investment, economic diversification and employment.
- However, she said, the infrastructure investment needs for the Africa region top Sh8 trillion ($93 billion) annually.
- Kenya is involved in several mega projects including the standard gauge railway and the Lamu Port South Sudan Ethiopia (LAPSSET) corridor projects.
The International Monetary Fund (IMF) managing
director Christine Lagarde has commended Kenya and Cote d’Ivoire for
starting regional development projects that are likely to drive economic
growth.
Ms Lagarde said high quality infrastructure could be a magnet for foreign investment, economic diversification and employment.
Kenya is involved in the standard gauge railway (SGR) project that is to link Kenya, Uganda, Rwanda and even South Sudan.
The Lamu Port South Sudan Ethiopia (LAPSSET) corridor projects — rail, roads and pipeline — that start at Lamu port are supposed to link with South Sudan, Ethiopia and Uganda.
“Kenya and Côte d’Ivoire are also initiating
regional infrastructure projects in electricity, and road and railroad
networks,” she said in prepared remarks titled ‘Africa Rising—Building
the Future’ to be delivered in Maputo, Mozambique. Such investments
would make growth sustainable for a large group of people in Africa, she
said.
However, she said, the infrastructure investment needs for the Africa region top Sh8 trillion ($93 billion) annually.
“The investment needs for the region are estimated
at about $93 billion annually. In most cases, the investments are large
and upfront,” she said.
She said the investments need to be carefully
selected, managed and implemented within medium- to long-term budgeting.
Another policy priority was to build institutions for improved
governance.
“We all know that Africa has tremendous potential —
it is home to more than 30 per cent of the world’s mineral reserves.
Properly managed, these endowments offer unparalleled opportunity for
economic growth and development,” she said.
Valuable lessons
The management of the resources has become a major
discussion issue in view of the conflict generated in some of the
countries like the DR Congo, South Sudan and Nigeria where violent
conflict has left thousands killed.
The IMF boss said Kenya offered a good example in terms of increasing financial access.
In the 2013 FinAccess Survey conducted by
UK-funded NGO Financial Deepening Trust and the CBK, it emerged about 75
per cent of Kenya now have access to a formal financial sector service
provider.
“Kenya’s experience offers valuable lessons to the rest of the world on how to empower the poor through financial access.
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