AFRICA – The International Finance Corporation (IFC) has announced a US$30 million equity investment in the Africa Infrastructure Investment Fund 4 Partnership (AIIF4), to boost essential infrastructure development in countries across Africa.
The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In the energy sector, the fund will target utility-scale renewable energy platforms and commercial and industrial projects.
In the transport infrastructure sector, the fund will prioritize investments in mobility and logistics, bulk-handling infrastructure, and temperature-controlled logistics.
IFC’s US$30 million, own-account investment will help AIIF4 exceed its final close target of US$500 million.
“IFC’s partnership with AIIM will support the development of digital assets and bolster the crucial renewable energy and transportation sectors in several countries across Africa,” said Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources, Africa.
“This investment underscores IFC’s commitment to supporting private sector projects that drive access to opportunity and support development in Africa.”
Private and development finance investment are essential to helping governments across Africa meet their growing infrastructure needs, deliver services, and strengthen their economies.
In the fiscal year 2023, IFC dedicated US$43.7 billion to support private companies and financial institutions in developing nations.
This commitment harnesses the strength of the private sector to address extreme poverty and enhance shared prosperity amidst the challenges posed by compounding global crises in economies.
Highlighting the significance of private and development finance, it was emphasized that these investments play a crucial role in assisting African governments in meeting their increasing infrastructure demands, delivering essential services, and fortifying their economies.
Amani Abou-Zeid, AU commissioner for Infrastructure and Energy, says Africa faces significant infrastructure deficits that hinder economic growth and development in the continent.
He notes that closing the infrastructure funding gap and scaling up renewable energy investments are critical to help African countries meet climate goals.
According to the commissioner, energy access in Africa remains low, with more than 600 million people lacking access to electricity.
IFC’s investment in the AIIF4 fund aligns with the World Bank Group’s Digital Economy for Africa (DE4A) initiative, which seeks to narrow the digital connectivity gap in sub-Saharan Africa.
This investment contributes to the World Bank Group’s broader strategy to expedite electrification in Africa, with the goal of achieving universal access to power on the continent by 2030.
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