To boost essential infrastructure development in countries across Africa, IFC today announced a $30 million equity investment in the Africa Infrastructure Investment Fund 4 Partnership (AIIF4).
The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d'Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In the energy sector, the fund will target utility-scale renewable energy platforms and commercial and industrial projects. In the transport infrastructure sector, the fund will prioritize investments in mobility and logistics, bulk-handling infrastructure, and temperature-controlled logistics.
IFC's $30 million, own-account investment will help AIIF4 exceed its final close target of $500 million.
"IFC's partnership with AIIM will support the development of digital assets and bolster the crucial renewable energy and transportation sectors in several countries across Africa," said Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources, Africa. "This investment underscores IFC's commitment to supporting private sector projects that drive access to opportunity and support development in Africa."
Private and development finance investment are essential to helping governments across Africa meet their growing infrastructure needs, deliver services, and strengthen their economies.
IFC's investment in the AIIF4 fund is aligned with the World Bank Group's Digital Economy for Africa(DE4A) initiative, which aims to help bridge the digital connectivity gap in sub-Saharan Africa. It forms part of the World Bank Group's strategy to accelerate the pace of electrification in Africa to achieve universal access to power on the continent by 2030.