After decades of comparative neglect, the drylands of the Horn of Africa are experiencing an unprecedented surge of investment. Largescale infrastructure projects now dominate national development plans. They represent a welcome renewal of interest by states in drylands and an opportunity to reduce long-standing inequalities in the provision of public goods and services. Uneven investment has been a barrier to formal private sector engagement; it has also left pastoralists more vulnerable to shocks and ill-equipped to take advantage of processes of economic transformation. Of all types of investment, state-driven investment should provide for the greater public good. Careful planning and management will be required if it is to contribute to inclusive growth rather than deepen inequality.