31^st August, 2016- The Permanent Secretary in the Ministry of Infrastructure Christian Rwakunda is confident that putting in place right infrastructure is key driver for socio-economic development in Rwanda and the World in general. He says improving transport networks and access to reliable energy and ICTs will reduce the cost of operations and ensure efficient production and service delivery.

“For instance, development of an efficient regional railway transport system would cut the cost of export/import by almost half and reduce the transit significantly. This would open up new opportunities for export and increase regional trade,” he notes.

The PS says, in addition, access to affordable and efficient energy for local industry is essential to grow the sector which is still almost dormant. Access to affordable power promotes growth of micro-industries allowing more Rwandans and investors generally to engage in processing of raw materials into finished products and earn more revenue.

He notes that, lack of efficient infrastructure facilities and skilled human resource has led to high costs of investment, while private investments remain low compared to the expectations of developing countries.

“As a result, development and operation costs remain high in Africa. For example, the recent development of the methane gas power project on Kivu Lake required skilled personnel to carry out research. Besides, implementation of infrastructure projects by foreign firms reduces benefits for local firms, “The PS urges that such situations are mitigated by knowledge transfer programmes to benefit the host countries.

To address these issues, Rwanda has put in place an investor-supportive investment policy as well as created an enabling environment. The Government also promotes public-private partnerships, especially for key projects and export-oriented investments.

In addition, technical and vocational education has been given priority to bridge the skills gap in the industrial and other sectors.

The PS adds that the Government encourages local content development at all levels, including human resources, local materials, local partnership or sub-contracting. The African leaders need to address the key challenges affecting the continent’s development through regional frameworks that will help fast-track the implementation of the African Agenda. These efforts are crucial for the realisation of the ambitious continental free trade area (CFTA) initiative that seeks to promote trade with the continent, among others.

The Central Corridor Transit Transport Facilitation Agency (CCTTFA) will be made up of over one billion people, with a GDP of $3 trillion. It will also boost trade by 50 per cent among African countries by 2022. The continent’s gross domestic product (GDP) is also estimated to rise from $1.7 trillion in 2010 to $2.6 trillion by 2020, while consumer spending will grow from $860 billion to $1.4 trillion over the period. According to Central Corridor Transport Observatory Annual Report 2015.

Already, plans are underway by three regional blocs on the continent to create the largest free trade area on the globe, from the Cape to Cairo. The tripartite free trade area will bring together the East African Community, the Common Market for Eastern and Southern Africa and the Southern African Development Community into a single new zone. This is envisaged to ease barriers to trade, and stimulate $1 trillion worth of economic activity across the region of more than 600 million people.

However, there is need to support the private sector with improved infrastructure and other facilities and initiatives to enable free movement of people and goods. Easing movement of goods and people is critical in driving the trade and that is why the launch of the African e-passport at the Kigali AU summit was a key milestone for the continent that could help in the realisation of this goal. This remarkable step could help drive trade on the continent and spur sustainable socio-economic development.

Some of these efforts could eventually help address most of the challenges hampering business growth across the continent, which will in the long-run contribute to the realisation of the new Africa aspirations, making the African renaissance a reality.