G20 initiative targets Kenya over infrastructure projects

In November 2014, the G20 leaders formed a new initiative to uplift quality public and private infrastructure investment globally through collaboration with governments, the private sector, development banks and international organisations.

The G20 created the Sydney-based Global Infrastructure Hub (GIH) to help implement its agenda and help unlock an estimated $2 trillion (Sh204 trillion) in global infrastructure capacity by 2030.

Brer Adams, the director for Energy and Infrastructure at GIH, was in Nairobi this week for talks with government officials and private sector players on how the country can tap opportunities and help with the implementation of grand infrastructure projects.

He spoke with Allan Odhiambo on GIH’s strategic plans for infrastructure development.

It is slightly more than a year since the G20 at the Brisbane Summit made the commitment to establish the GIH, what has been the progress so far?

The core work teams at GIH are now in place and we are developing networks for governments and the private sector to exchange the best practice.

We are also improving information and data of infrastructure and developing a global projects pipeline to enable investors trace and monitor projects.

When will this information be available for governments, financiers and private sector players?

A lot of material has already been put together on project opportunities and financing gaps and we anticipate to roll out the data in two months’ time and roll out more over the next 24 months.

What are the exact roles of the GIH?

We don’t have a balance sheet of our own to finance infrastructure projects but we only facilitate the development and delivery of pipelines of bankable, investment-ready infrastructure projects.

Ours is to address data gaps, lower barriers to investment and help increase the availability of investment-ready projects. We also help match potential investors with projects and improve policy delivery. We are basically enablers.

What are GIH’s immediate priorities?

Currently we are developing a knowledge-sharing network to aggregate and share information on infrastructure projects and financing between governments, international organisations, development banks, national infrastructure institutions and the private sector.

We anticipate that this will help match potential investors with projects.

We are also keen on promoting quality investment and sound procurement systems and procedures so that parties involved get real value for money.

Infrastructure has deep running benefits but takes time and is costly to be established. Infrastructure developers must think long-term.

You are in Kenya for talks with the government and the private sector, any specific items on the card?

Kenya stands out as having achieved an impressive economic growth over a lengthy period and we need to understand its needs for further transformation.

Infrastructure is a key ingredient for economic growth and Kenyan stands to benefit from GIH’s initiatives of matching potential investors with projects.

We have seen several grand infrastructure projects lined up for implementation in Kenya and we believe these can benefit from this initiative.

What has been the reaction so far to the GIH initiatives?

The response has been great because infrastructure remains a key enabler of economic growth and every other country is aspiring to have the best infrastructure facilities.

Based on projections of demand of funding by the infrastructure segment, about $57trillion or 3.5 per cent of the global GDP in needed through 2030.

Emerging markets growth is in fact changing infrastructure markets. In the past 10 years growth has been driven by emerging markets, a trend that is forecast to continue.

What has been the main drawback on infrastructure development in Africa?

Lack of sufficient funding has been a leading setback to infrastructure development, especially in emerging economies.

There has been limited public financing of infrastructure financing and there is need to tap longer tenor private capital going forward to enable the success of some of these projects.