SA finmin Mboweni on infrastructure investment, achieving inclusive growth in Africa

South Africa's Minister of Finance, Tito Mboweni, emphasized the importance of the Africa Investment Forum in driving infrastructure investment across the continent in a recent interview with CNBC Africa. Mboweni highlighted the need to attract private sector investment to Africa and stressed that Africa is ready and open for business. The focus of the conference was on promoting infrastructure development, which is crucial for enhancing communication, facilitating trade, and improving transportation of goods. Mboweni acknowledged the significance of infrastructure such as roads, bridges, and railways, while also mentioning the importance of investments in sectors like media and entertainment for fostering happiness and well-being. One of the main challenges hindering small to medium businesses from participating in infrastructure investments is the high cost of capital in Africa. Mboweni addressed this issue by advocating for a transformation in funding models to promote inclusive growth. He mentioned the organization Arise, which partners with local entrepreneurs to establish locally-based banks that provide funding to small and medium enterprises at favorable terms. This initiative aims to create an inclusive growth model that benefits entrepreneurs and supports economic development in various African countries. Mboweni further discussed the efforts to de-risk African projects and improve governance in state-owned entities to attract more international investors to the continent. He emphasized the need for governments to facilitate partnerships with the private sector and create a conducive environment for businesses to thrive. While acknowledging the existence of corruption globally, Mboweni highlighted the importance of rooting out corruption in both government and the private sector to ensure that funds are allocated appropriately and transparently. The interview also touched upon the exchange rate of the South African Rand, with Mboweni reiterating the government's stance on ensuring a competitively priced exchange rate for the currency. Despite the Rand breaking the 14 Rand to the dollar mark, Mboweni emphasized the importance of maintaining a competitive exchange rate to support economic growth and international trade. Overall, Mboweni's insights during the interview underscored the significance of infrastructure investment in driving inclusive growth in Africa and the need for collaborative efforts between the public and private sectors to unlock the continent's economic potential.