Q&A: How social equity and capacity building are key to improving infrastructure development in Africa

The Miundo Misingi Hub (Miundo Misingi) is a centre for excellence in infrastructure financing and development in Nairobi, Kenya. In this Q&A, we ask Miundo Misingi’s Founder and Chief Executive Officer, Johnson Kilangi, for his views on how sustainable and socially responsible projects yield long-term benefits, and how capacity building is key to improving infrastructure development and inclusive growth across Africa.

Can you give us a brief overview of the work of Miundo Misingi?

Miundo Misingi was incorporated to address the pressing need to support public and private sector entities in creating and implementing innovative and sustainable infrastructure solutions that can be replicated throughout Africa.

Our vision is to become a leading force in generating unsolicited infrastructure project proposals for Africa. Through research, collaboration, and capacity building, Miundo Misingi is dedicated to enhancing the quality of infrastructure projects, fostering economic growth, and promoting social wellbeing. The organisation conducts studies, provides technical assistance, and advocates for sustainable practices by leveraging technology and local and global expertise to positively impact African infrastructure development.

Private finance is key to closing the infrastructure gap – is demonstrating that projects are inclusive important to attracting private finance?

Demonstrating that infrastructure projects are inclusive is crucial for attracting private finance. Private investors are increasingly prioritising projects that align with environmental, social, and governance (ESG) criteria. Inclusivity, which encompasses factors such as social equity, community engagement, and accessibility, is an essential aspect of the social dimension of ESG.

By demonstrating that infrastructure projects prioritise inclusivity, such as providing equal access to services and opportunities for marginalised communities and vulnerable groups, organisations can attract green, social, and sustainability (GSS) finance, which is a relatively untapped source of capital in Africa.

Additionally, inclusive projects are considered to have a better risk profile and be more sustainable since they are socially responsible, thus less prone to social unrest. This improves their attractiveness and viability for private finance.

You have been a strong advocate for infrastructure public-private partnerships (PPPs) in East Africa – how are ESG and other requirements affecting PPPs?

ESG requirements are increasingly influencing PPPs in East Africa's infrastructure sector, and governments and investors recognise that sustainable and socially responsible projects yield long-term benefits. ESG considerations affect various aspects of PPPs, including project selection, design, implementation, and performance management.

Projects must align with environmental standards, promote social inclusivity, and adhere to good governance practices. Investors are placing greater emphasis on ESG performance, as failure to meet these requirements can lead to reputational risks and financial losses. ESG factors are integrated into due diligence processes, project evaluation, and monitoring to ensure that PPPs contribute positively to sustainable development and meet stakeholder expectations. Consequently, it is not surprising to note that failure to meet ESG requirements has led to some projects failing to achieve financial close.

Miundo Misingi is also a capacity building organisation. How important is building more capacity in the region?

For many years, the East Africa region has financed the majority of infrastructure projects using public finance. The involvement of private finance in public infrastructure projects is a new concept for many countries in the region.

For the region to make reasonable progress in delivering infrastructure solutions through private finance, capacity building is crucial and is of utmost importance for sustainable development and progress. Capacity building enhances the skills, knowledge, and resources available to individuals, organisations, and communities, empowering them to effectively address challenges and seize opportunities.

In the context of Miundo Misingi, capacity building plays a crucial role in improving infrastructure development in Africa. By equipping local professionals, communities, and institutions with the necessary expertise and tools, Miundo Misingi contributes to the long-term sustainability of infrastructure projects, fosters local ownership, and promotes self-reliance within the region. Building capacity ensures that the region can independently plan, implement, and maintain infrastructure, leading to lasting benefits and inclusive growth.

You are a strong advocate for infrastructure in Kenya and beyond – how optimistic are you about the sector in Kenya and East Africa?

The infrastructure sector in Kenya and East Africa holds significant growth and development potential. Governments, regional bodies, and international investors recognise its importance in driving economic progress, improving living standards, and fostering regional integration. Ongoing efforts aim to attract investments, promote PPPs, and enhance regional connectivity through infrastructure projects like roads, railways, ports, and energy systems.

The prioritisation of key infrastructure projects in Kenya’s strategic blueprint, Vision 2030, is a positive move to ensure critical infrastructure projects are ringfenced in law, thus providing the private sector with reassurance of government commitment to development.

A notable milestone is the recent implementation of the PPP Act 2021 in Kenya, which supports PPPs through government measures, grants adequate mandate to the PPP directorate, and enables county governments to engage in PPPs. These reforms establish a platform for addressing the infrastructure funding challenge in Kenya through private finance.

However, challenges persist, including funding gaps, regulatory frameworks, and project implementation. Continued commitment, strategic planning, policy reforms, and stakeholder collaboration instil optimism regarding the sector's positive trajectory. By addressing these challenges, the infrastructure sector can contribute to sustainable development, job creation, and poverty reduction in the region.

The GI Hub’s Certificate in Inclusive Infrastructure equips professionals from across the infrastructure ecosystem with knowledge and tools to plan and implement infrastructure for social equity. Learn more about this professional training program.