Kenya and Ghana pivot to private capital for infrastructure and climate goals

Kenya is adopting a new financing model for major infrastructure projects, centered on the Sh2.2 trillion ($16 billion) Dangote East Africa Petroleum Refinery in Lamu County. During a groundbreaking ceremony in Mokowe, President William Ruto announced that the government will utilize the National Infrastructure Fund and public assets, such as land, to secure a stake in the project. This approach aims to move away from a reliance on taxes and public debt, instead using the state to provide policy certainty and regulation while the private sector provides capital, technical expertise, and management.

The refinery is expected to process 700,000 barrels of crude oil per day and supply refined products to Kenya and the broader East African market, with construction projected for completion by 2030.

In Ghana, officials are pursuing a similar strategy to address the climate investment gap. Deputy Finance Minister Thomas Nyarko Ampem stated that public and concessional resources must be used to reduce risks and attract commercial capital, noting that the national budget alone cannot meet climate targets. Ghana currently faces a significant gap, with annual climate finance estimated at only 5–9% of the required investment. The government aims to shift from mere disbursement to mobilizing additional private investment through frameworks like the Climate Prosperity Plan.