The Board of Directors of the African Development Bank has approved its third equity investment of $40 million in Africa Infrastructure Investment Fund.
Dubbed (Africa Infrastructure Investment Fund, AIIF3), the closed-ended pan-African infrastructure fund is managed by South Africa-based Africa Infrastructure Investment Managers (AIIM).
The Fund will focus on acquiring positions of significant influence in roads, airports, rail links, bridges, ports, logistics, power generation, utility distribution, as well as telecommunication assets.
The proposal represents the Bank’s third investment with this fund manager, following a 1996 investment in SAIF and a 2010 investment in AIIF2.
With this, the African Development Bank stands to have positive additional role through this investment, given that the fundraising market continues to be very challenging, leaving an important role to be played by DFIs.
Commercial and institutional investors are likely to view the Bank’s investment as a positive demonstration effect. The Bank’s investment will also ensure the highest environmental and social standards are applied to AIIF3.
In terms of development outcomes, AIIF3 will create a quantifiable and measurable social and environmental impact by supporting energy and transport infrastructure access across Sub-Saharan Africa.
The Fund will support the creation of over 1,500 jobs at the project level and enhance capacity building and skills-transfer.
AIIF is Africa-based and features five regional offices in South Africa, Nigeria, Cote d’Ivoire, and Kenya. This translates to on-the-ground knowledge and strong relationships to source infrastructure investment opportunities.
Source : Africafeeds.com
