The COMESA Secretary General Mr Sindiso Ngwenya, has called upon the establishment of risk sharing mechanisms that will encourage the private sector invest in infrastructure. Mr Ngwenya made this call to the 3rd EU-Africa Business Forum, held in Nairobi Kenya on 28th September 2009, in a break up session on infrastructure entitled: “Improvement of the Business and Competition Environment to Encourage Infrastructure”

The purpose of this session was to provide an opportunity for delegates to discuss and debate a number of important topics, steps and initiatives relative to the improvement of infrastructure development in Africa, which is a crucial area with regards to improved economic development.

“Investment in infrastructure requires a lot of money and for it to make business sense to the private sector there must be a way to reduce their risks, one such approach would be to come up with interest subsides to those willing to invest in this sector” noted Mr Ngwenya.

Private Sector can only support infrastructure when there is risk sharing. Ngwenya.

Mr Ngwenya pointed out that no matter how well intentioned conferences like these might sound, they can only be useful if they come up with practical and practicable solutions and proposals. “ there is an egg and chicken situation, often we are told that the money is there provided you have bankable projects. But if you have no money to prepare these bankable projects, then you have no projects to help you access this money”. He praised the Africa Development Bank ( AfDB) for being exemplary by investing in preliminary work such as feasibility studies that support getting the money.

Secretary General Ngwenya added that to make matters worse multi lateral donors do not want to start where others ended. “You will have some one carry out an excellent study for you and leave, and when a new partners come they will want a new study before doing anything tangible. We have a lot of excellent studies on our shelves”. On the approach to regional projects, Mr Ngwenya emphasized that the involvement of Regional Economic Communities (RECs) such as COMESA is crucial. “there is need to see how RECs can be mandated to coordinate regional projects that facilitate integration… and these must be treated as regional. Do not package cross country projects based on bureaucratic country definitions. We often see neighboring countries being define as LDCs and DCs whose conditionalities differ. Soon as you reach the border you learn that you cannot continue under the same terms! That is why we are calling for a regional approach” Secretary General Ngwenya concluded by emphasizing the need for predictability. “ We are often told that funds are here provided you have the capacity to access it. But it if it is going to take eight years to get a project take off and factor in inflation, it might be cheaper for a country or a regional to go for a commercial loan, whose date of availability and actual costs are predictable than the so called donor support.” Argued Mr Ngwenya

The two days 3rd Africa-EU Business Forum that took place in Nairobi Kenya, was expected to come up with a new set of recommendations or focus in key areas made and agreed upon by delegates, for action to be taken and reviewed at the 4th Business Forum to be held in two years time. The 1st Forum was held in Brussels on 16-17th November 2006, the 2nd Business Forum took place in Accra, Ghana on 21-22nd June 2007. At the end of this forum, participants came up with a private sector declaration as well as a set of recommendations on ways of improving Africa business climate. The 3rd Forum is excepted to build on these two previous fora.