Reallocation of government financing is essential in unlocking infrastructure potential. It eliminates the crowding out of private-sector funding, as government investing in most commercially viable assets is crucial to those with lower returns (Mckinsey).
Tanzania is one of the nations that leverages its internal revenue to fund its projects, including iconic bridges in the nation’s commercial capital and several roads, buildings and facilities across the country.
Kenya is another excellent example of a solution offered by Mckinsey as the government prioritised investment in municipal infrastructure as part of a drive to provide 500,000 new affordable housing units in five years.
Ethiopia is moving similarly, whereby it has prioritised investment in industrial development zones to attract global apparel manufacturers.
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