The Emerging Africa Infrastructure Fund (EAIF), managed by Investec Asset Management (IAM), has raised $385 million in new long-term debt capital to invest in Africa. The new funds will be used over the next five years to continue EAIF’s core strategy of mobilizing private sector capital for investment in infrastructure projects, mainly in fragile states.
“We believe in Africa’s growth potential and will invest across different asset classes across the continent,” said Sebastian Schroff, global head of private debt, Allianz Investment Management.
The lenders are KFW, the German development bank, FMO, the Dutch development finance institution, and Standard Chartered Bank, all existing lenders. The African Development Bank (AfDB) returns as a lender. For the first time, EAIF has attracted a large commercial institutional investor in global insurer Allianz.
As a returning lender to EAIF, the African Development Bank is providing a total of $75 million over 10 years. Standard Chartered Bank is increasing and extending its existing lending to $50 million. Underlining its continuing support, KFW is contributing $50 million and €75 million ($90 million), both over 12 years, and FMO is lending $50 million over 10 years.
EAIF is part of the Private Infrastructure Development Group (PIDG), a donor-backed organization that encourages private sector infrastructure investment in the world’s lowest-income countries.
The Emerging Africa Infrastructure Fund is able to invest in eight infrastructure sectors. In addition to areas such as transport, water and telecommunications, EAIF is now a provider of debt to solar and renewable power projects.
In 2017, EAIF provided finance to independent power producers that will bring 90 megawatts of new solar power to Africa. Since 2015, it has backed renewables projects in Mali, Mozambique, Rwanda and Uganda.
Energy generation and its allied infrastructure at present accounts for some 50 percent of EAIF’s loan portfolio. In the future, it aims to have at least 50 percent of its power portfolio invested in renewables.
