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AfDB Approves $40m Infrastructure Lifeline for African Countries

An initiative approved by the African Development Bank (AfDB)which will serve as a new lifeline for infrastructure funding has been lined up for Nigeria and the rest of the continent’s economies, under the Africa Infrastructure Investment Fund (AIIF3), with $40 million ready for disbursements.

Third in a series of equity investments, is a closed-ended pan-African infrastructure fund managed by South Africa-based Africa Infrastructure Investment Managers (AIIM).

AIIM is one of Africa’s most experienced infrastructure fund managers and focused on acquiring positions of significant influence in roads, airports, rail links, bridges, ports, logistics, power generation, utility distribution, as well as telecommunication assets.

AfDB’s Group’s Director of Infrastructure and Urban Development, Amadou Oumarou, said 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.

According to AfDB, AIIF is Africa-based and features five regional offices in South Africa, Nigeria, Cote d’Ivoire, and Kenya, translating to on-the-ground knowledge and strong relationships to source infrastructure investment opportunities.

AIIF3 boasts an extensive pipeline of bankable or near-bankable infrastructure projects, having already reviewed hundreds of potential investments and narrowed down approximately $500 million, including key projects cutting across African economies.

The proposal represents the AfDB’s third investment with this fund manager, following a 1996 investment in SAIF and a 2010 investment in AIIF2, while with current plans, the multinational lender stands to have positive additional role, given that the fundraising market continues to be very challenging, leaving an important role to be played by Development Financial Institutions (DFIs).

 

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