Development Finance Institutions (DFI), British International Investment (BII) and FMO have announced a joint commitment of US$116 million to African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM).
Your investment aims to help AIIF4 reach its target fund size of $500 million.
Anchor investor BII, the UK development finance institution, has pledged US$76 million and FMO, the Dutch entrepreneurial development bank, US$40 million for AIIM’s fourth pan-African fund.
The fund had previously received a cornerstone investment from Old Mutual, the fund manager’s sponsor and a well-known African financial services group.
AIIM, an experienced fund manager with one of the longest track records in infrastructure investing in Africa, will invest in high-impact infrastructure projects across the continent through AIIF4.
The fund will see AIIM build on the successful performance of its predecessor funds by investing in three priority infrastructure sub-sectors: renewable energy such as rooftop solar; digital infrastructure including cell towers, data centers and fiber optic networks; and mobility and logistics such as ports, roads and other supporting infrastructure.
AIIF4 will play a role in bridging the estimated $108 billion per year infrastructure funding gap by funding reliable infrastructure across the continent. AIIF4-supported projects will significantly increase productivity by creating jobs and stimulating economic activity, while the new and upgraded infrastructure will support inclusive development, improve consumer living standards and accelerate sustainable economic growth in many countries on the continent.
In addition, at least 20 percent of AIIF4 committed capital will be invested in climate finance eligible projects that directly contribute to reducing greenhouse gas emissions. Additionally, AIIF4 qualifies for the 2X Challenge based on AIIM’s workforce, which is 50 percent female, and its commitment to advancing entrepreneurship, employment, leadership and consuming opportunities for women in 30 percent of AIIF4’s portfolio companies.
Ryan Wagner, Head of Infrastructure and Climate Funds at British International Investment, said: “For over a decade, BII has been proud to be an active partner of AIIM, an institutional fund manager with extensive industry experience and in-depth knowledge of Africa’s infrastructure space. We are pleased that our partnership with FMO and Old Mutual will serve to mobilize further capital to achieve AIIF4’s target size and play a role in meeting Africa’s infrastructure needs.
“AIIF4 clearly aligns with BII’s core infrastructure strategy, and we are confident that our capital will help modernize cities and services, and accelerate social and economic prosperity for people and communities across the continent.”
Diana Wesselius, Manager, Private Equity Energy, said: “FMO is thrilled to support AIIM as a cornerstone investor in the first closing of AIIF4 and appreciates the commitment of the AIIM team to climate finance and gender equality.
“Having also invested in the two legacy funds, we see AIIM as a long-term partner in supporting infrastructure development in line with our strategy and look forward to supporting the infrastructure advancement of the African continent.”