FEDA invests US$85mn in ARISE IIP

06 Nov 2022

The Fund for Export Development in Africa (FEDA), the development impact investment platform of African Export Import Bank (Afreximbank), has invested $85m in ARISE Integrated Industrial Platforms (ARISE IIP), the pan-African infrastructure developer and operator.

The fundraising was achieved through the signing of convertible loan note subscription agreement with FEDA.

The conversion of the loan notes into ordinary shares in ARISE IIP’s capital can occur during the conversion periods specified under the agreement.

Marlène Ngoyi, CEO of FEDA, said: “Our investment in ARISE IIP demonstrates FEDA’s ability to invest in opportunities that will drive the structural transformation of trade on the continent. ARISE IIP is a key player that supports Africa’s local manufacturing and trade with the rest of the world. It echoes the FEDA’s DNA to provide equity capital with a focus on delivering development impact in diverse sectors in Africa which are critical to driving intra-African trade and value-added export development.”

ARISE IIP has recently accelerated its expansion across Africa, with the signing of five new agreements this year to develop twelve special economic zones across 5 countries, as follows: 

  • A framework agreement signed with the Government of Rwanda for the development of an industrial zone in the Bugesera District (September 8th 2022).
  • A framework agreement signed with the Democratic Republic of the Congo for the development of the Kin-Malebo industrial zone (September 16th 2022).
  • A framework agreement signed with the Republic of Congo for the development of the industrial zones of Pointe-Noire and Oyo (October 6th 2022).
  • A funding agreement signed with the Republic of Chad for the development of seven economic zones across the country (November 5th 2022).
  • A binding agreement signed with the State of Ogun of Nigeria for the development of the Remo Economic Industrial Cluster (November 7th 2022).

Headquartered in Kigali, Rwanda, the Fund for Export Development in Africa  is the impact investment subsidiary of the African Export-Import Bank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. 

Gagan Gupta, Founder and CEO of ARISE IIP, said: “This agreement marks a new stage of Arise’s development in Africa. It will lead to the creation of an African champion of infrastructure development. I would like to extend a warm thank you to our trusted partners in this project, the FEDA.”

 

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