How we can boost sustainable infrastructure investments – Rwandan Minister

Regional integration holds the key to reducing infrastructure costs across the East African Community (EAC), but challenges remain. In a recent interview with CNBC Africa, Ambassador Claver Gatete, Minister of Infrastructure in Rwanda, shared insights on the best business models to boost sustainable private sector investment in infrastructure projects. Gatete emphasized the critical need for collaboration at the regional level to drive progress and unlock the full potential of infrastructure development in the region. One of the central themes discussed by Gatete was the importance of regional integration in East Africa. He highlighted the ongoing efforts in both the central and northern corridors of the region, emphasizing the need for increased momentum. Gatete stressed the significance of working together as a region to link countries through initiatives such as railway, energy, and ports development. These interconnected activities play a vital role in reducing transportation costs, ultimately driving economic development across the continent. A key challenge identified by Gatete was the issue of financing infrastructure projects. He noted that reliance on commercial banks for funding often leads to high costs and short-term financing. To address this challenge, Gatete proposed the establishment of a regional stock exchange that would facilitate access to capital within and beyond the region. By interlinking all stock exchanges in the region, countries could attract the necessary resources for infrastructure development more efficiently. In addition to discussing financing options, Gatete underscored the importance of tapping into innovative resources for infrastructure development. While government financing is essential, Gatete emphasized the need for collaboration between the public and private sectors. By engaging in partnerships from the planning stage to project implementation, governments can leverage private sector resources for large-scale infrastructure projects. This approach not only accelerates the pace of development but also ensures the sustainability of infrastructure investments. Gatete's insights shed light on the complexities of infrastructure development in East Africa and the critical role of collaboration, financing, and innovation in driving sustainable investments. As countries in the region continue to prioritize infrastructure development to foster economic growth and regional competitiveness, Gatete's recommendations provide valuable guidance for policymakers and stakeholders navigating the infrastructure landscape in East Africa.