On July 27, development finance institutions (DFIs) British International Investment (BII) and FMO made a joint commitment to the African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM ), aimed at helping AIIF4 reach its $500 mark. -million target fund size.
Lead investor BII – the UK’s development finance institution, has committed $76 million, while FMO – the Dutch entrepreneurial development bank, has committed $40 million to AIIM’s fourth pan-African fund .
The fund previously received fundamental investment from Old Mutual, the fund manager‘s sponsor and a leading African financial services group.
AIIM, an experienced fund manager with one of the longest track records of infrastructure investing in Africa, will invest in high-impact infrastructure projects across the continent through AIIF4.
As such, AIIF4 will help 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 mobile telecommunications 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 closing the infrastructure financing gap estimated at around $108 billion per year by financing reliable infrastructure across Africa.
AIIF4-supported projects will boost productivity by creating jobs and boosting economic activities, while new and upgraded infrastructure will support inclusive development, improve consumer living standards, and accelerate sustainable economic growth in many countries. from the continent.
In addition, at least 20% of the capital committed in AIIF4 will be invested in projects eligible for climate finance, which will directly contribute to the reduction of greenhouse gas emissions.
In addition, AIIF4 qualifies under the Group of 7 initiative the 2X Challenge, based on AIIM’s 50% female workforce and commitment to working to increase career opportunities. entrepreneurship, employment, leadership and consumption for women in 30% of AIIF4 portfolio companies.
Head of infrastructure and climate funds BII ryan wagner says that, for more than a decade, BII has been proud to be an active partner of AIIM, an institutional money manager with long-term industry expertise and on-the-ground knowledge of the infrastructure space in Africa.
“We are delighted that our partnership alongside FMO and Old Mutual will serve to leverage more capital to help achieve the AIIF4 target size, playing a part in meeting Africa’s infrastructure needs.”
He adds that AIIF4 clearly aligns with BII’s core infrastructure strategy, and BII is confident that its capital will help modernize cities and services and accelerate the social and economic prosperity of people and communities in across Africa.
Head of Energy FMO Private Equity Diane Wesselius states that because FMO has also invested in the two previous funds, the organization views AIIM as a long-term partner in supporting infrastructure development in line with FMO’s strategy and looks forward to supporting the advancement infrastructure on the African continent.
This commitment by BII, FMO and Old Mutual contributes to UN Sustainable Development Goal 7 – affordable and clean energy; 8 – decent work and growth; and 9 – industry, innovation and infrastructure.