Northern Corridor Region Member States to embrace PPPs to tap into new investment opportunities
The Northern Corridor Member States of Burundi, DRC, Kenya, Rwanda, South Sudan and Uganda harbour immense opportunities in Public Private Partnership projects (PPPs) investment mainly in Multimodal Transport, Industrial and Social infrastructure.
All Member States in the region have embraced PPPs as a mechanism to finance large infrastructure projects due to constrained national fiscal space. The vibrant private sector in the region, being a significant partner, is equally keen on participating in PPPs towards the development of infrastructure. A critical prerequisite, however, remains clarity in the legal and regulatory framework, viability of the projects through comprehensive feasibility studies and proper structuring of the projects. Capacity gaps will however need to be filled both in the private and public sector.
“Public Private Partnership is a key component to ensure a sustainable and competitive corridor. We must take this important opportunity to share information and experiences with a view to identifying available PPP investment opportunities along the corridor”, urged Dr. Belio Kipsang, CBS, Principal Secretary, State Department for Regional and Northern Corridor Development and Chairman of the Executive Committee during the opening of the 3rd Northern Corridor PPP Committee Meeting held online on 15th April 2021.
Despite the Covid-19 pandemic disturbing the course of business globally and regionally, the Northern Corridor business community has displayed resilience, thanks to the continued dialogue between the public and private sectors, and with the support of strategic partners who have made an invaluable contribution to the logistics chain, especially in terms of controlling the spread of the pandemic.
In promoting private sector investment, respective Northern Corridor Member States should create supportive and enabling business environments for the private sector. Ease of doing business should above all be prioritized to ensure facilitation in the uptake of business opportunities by the private sector.
OMAE Nyarandi, the Northern Corridor Executive Secretary, reiterated the need for the Private sector’s full involvement in the Northern Corridor Policy Organs and engagements on how the Northern Corridor can continue to serve the Private sector better.
“The Northern Corridor region, more than ever before, needs better conjunction of efforts, knowledge and financial capital to bring about the development needed to reverse the trend of the region being a net importer of goods and services, and curb the cost of transport and doing business”, underlined Omae Nyarandi.
The more than 50 participants in attendance at the 3rd Northern Corridor PPP Committee Meeting commended Secretariat for creating awareness on the available opportunities for investment in multimodal and industrial infrastructure PPP projects in Member States, such as highways, pipelines, rail, energy, industrial parks and special economic zones, creation of economic nodes, among others. They further earmarked some inland waterways projects of interests on Lake Victoria between Kenya and Uganda, Lake Kivu between Rwanda and DRC, River Congo in DRC, Lake Tanganyika between Tanzania, Burundi and DRC, River Nile in South Sudan and Akagera River between Rwanda, Burundi and Tanzania. These create a platform for investments in small ports, landing sites, water transport systems, among others, bringing efficiency and reduction in transport costs.
To steer the leadership of the Committee over the next 2years, the participants of the 3rd Northern Corridor PPP Committee Meeting elected Kenya’s Gilbert Langat, the CEO East Africa Shippers Council as the new Chairman from the Private Sector and Alfred Byiringiro, Director General for Transport, Ministry of Infrastructure, Rwanda, as Vice Chair from the Public sector.
The outgoing Chairman of the Northern Corridor PPP Committee, Ngor Ayuel Kacgor from the Republic of South Sudan Private Sector, thanked the Northern Corridor Policy Organs, Member States and the Northern Corridor Secretariat for resolving the issue of private sector participation in the decision making processes.