Role of private sector in infrastructure development

East Africa's budget is poised to prioritize infrastructure development, with countries in the region collectively investing up to $51 billion in 2016-2017. Despite the substantial investments, East Africa's infrastructure remains one of the least developed in the continent. Vishal Agarwal, the Managing Director of Development and Investments at GE Africa and a YPO member, sheds light on the role of the private sector in bridging the infrastructure gap during a recent interview with CNBC Africa. Agarwal emphasizes the importance of collaboration between the private and public sectors in addressing the $93 billion annual gap in infrastructure funding across the region. He underscores the significance of localization, skill development, and institutional capacity building as key components of this collaboration. Agarwal points out that at GE, 60% of the leadership is African, highlighting the company's commitment to nurturing local talent and empowering the next generation of private sector professionals in East Africa. Moreover, Agarwal acknowledges the pivotal role of public-private partnerships (PPPs) in driving infrastructure development. He mentions that East African countries rank among the top 10 PPP-ready nations in Africa, indicating a conducive policy environment for collaboration between the two sectors. However, Agarwal highlights the need for enhanced scale and cross-border trade facilitation to fully leverage the potential of PPPs in the region. Addressing concerns about external funding sources, Agarwal discusses GE's strategic approach to engaging with Chinese partners in delivering infrastructure projects. He explains that while China plays a significant role in financing mega projects in Africa, GE focuses on delivering technologically advanced solutions and maintaining high-quality standards in partnership with Chinese entities. By emphasizing local presence and long-term commitment to the region, GE aims to drive socioeconomic growth and enhance the overall infrastructure landscape. Agarwal further emphasizes GE's unwavering dedication to the East African region, expressing confidence in the long-term growth prospects despite fluctuating economic conditions. He underscores the importance of investing in the next generation of stakeholders, including customers, suppliers, and infrastructure capacity, to sustainably drive economic development in the region. In conclusion, Vishal Agarwal's insights highlight the critical role of the private sector in driving infrastructure development in East Africa. Through strategic partnerships, local capacity building, and a commitment to excellence, companies like GE are contributing to the growth and sustainability of the region's infrastructure ecosystem. As East Africa continues to prioritize infrastructure investments, collaboration between the public and private sectors will be essential to unlocking the full potential of the region's development agenda.