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KIDS (SSA) Limited

The recent debates about how best to fill the “financing gap” that have emerged in relation to infrastructure in SSA are noteworthy for the omission of the public sector as a potential source of increased revenue. The state has been a key player in infrastructure development around the world. Developed countries achieved universal coverage of basic services with government spending, raised by taxation and government loans.

Reducing tax incentives, curbing capital flight and attaching greater demands to resource extraction licence offer considerable scope for revenue generation that could be directed towards infrastructure development.

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Infrastructure development and financing are an indispensable component of growth for any economy, and in SSA are an essential building block for African countries to get on the path of sustainable development. However, at present, SSA countries lack adequate and sustainable infrastructure to support increased economic growth. It can be argued that policy reform, increased funding, better bankable projects preparation, improved management and delivery and better use of financial and risks instruments all leverage each other, increasing infrastructure services. Policy reforms can stretch available investment funding, lower investment risks, and attract more funds.