AFRICAN INFRASTRUCTURE INVESTMENT FUND 4

Promoteur – Intermédiaire Financier

AFRICAN INFRASTRUCTURE INVESTMENT MANAGERS (PTY) LTD

Lieu

• Régional - Afrique

Description

Equity fund focusing on value-add infrastructure assets (mainly construction and growth assets) in Africa, with a focus on sub-Saharan Africa.

Additionality and Impact

EIB's investment supports the investment strategy of an established fund manager to create / enhance value of infrastructure assets in transportation, digitalisation, climate action and environmental sectors in sub-Saharan Africa. It also supports the introduction of high standard of environmental, social and governance ("ESG") best practices in the portfolio companies.

The Fund is focused on sectors with significant growth potential in underserved markets. The operation will address the market failure in risk-assessment that is hindering the development of greenfield infrastructure assets and infrastructure operating companies in the region. It also addresses the gap between supply and demand that are closely linked to lack of capacity and availability of funding for such assets.

An EIB investment is seen an essential component for the Fund to achieve (i) the target fund size, and (ii) crowd-in new investors.

The Fund Manager has demonstrated willingness to introduce structural enhancements to be in compliance with EIB Group policies and best market practice.

The proposal will deliver on several EIB objectives outside the EU. It will contribute to the European Commission's Global Gateway strategy, the Digital4Development policy, the European Green Deal, the Circular Economy Action Plan and priority for Sustainable growth and jobs.

Objectifs

The investment team targets both new and existing assets and intends to apply for the latter a buy and build strategy that consists of acquiring controlling stakes in mature operational assets and then developing and optimising them further. The investment team targets essential African infrastructure assets in the mobility and logistics, power and energy transition (specifically renewable energy), as well as digital sectors across mainly in sub-Saharan countries.

Secteur(s)

• Énergie - Production et distribution d'électricité, de gaz, de vapeur et d'air conditionné
• Transports - Transports et entreposage
• Télécom - Information et communication

Montant BEI envisagé (montant approximatif)

USD 75 million (EUR 75 million)

Coût total (montant approximatif)

USD 500 million (EUR 499 million)

Aspects environnementaux

The fund will be required to have an environmental and social policy and the appropriate management systems in place so as to comply with the social requirements of the Bank. The assessment of the environmental, climate and social impacts and risks will be part of the standard due diligence process that the fund will have to carry out for each portfolio company and any underlying investment and, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as the EIB's Environmental and Social Standards.

Passation des marchés

The EIB will require the fund manager to take all requisite measures to ensure that contracts for implementation of the projects financed by the fund will be tendered in line with the Bank's Guide to Procurement.

Statut

Signé - 1/12/2022