BII, DFI To Invest In African Infrastructure

African Infrastructure Investment Fund 4 (AIIF4), which is run by African Infrastructure Investment Managers, has received a $116 million commitment from Development Finance Institutions (DFI), British International Investment (BII), and FMO (AIIM).

They want to help AIIF4 raise the $500 million that it needs to meet its goal fund size.

The fourth pan-African fund of AIIM has received investments totaling $76 million from anchor investor BII, the UK's development finance organization, and $40 million from FMO, the Dutch entrepreneurial development bank.

Old Mutual, a significant African financial services company and the fund manager's sponsor, had previously made a cornerstone investment in the Fund.

AIIF4 will make investments in high-impact infrastructure projects all over the continent from AIIM, a seasoned fund manager with one of the longest track records in infrastructure investment in Africa.

By investing in three priority infrastructure sub-sectors—renewable energy, such as rooftop solar; digital infrastructure, such as mobile telecom towers, data centers, and fiber optic networks; and mobility and logistics, such as ports, roads, and other supporting infrastructure—the Fund will see AIIM build on the successful performance of its predecessor funds.

By investing dependable infrastructure across the continent, AIIF4 will contribute to closing the estimated $108 billion annual infrastructure financing deficit. The projects supported by AIIF4 will significantly increase productivity by generating jobs and stimulating the economy, and the new and upgraded infrastructure will support inclusive development, raise consumer standards of living, and hasten sustainable economic growth in many of the continent's nations.

Additionally, at least 20% of the money allocated to AIIF4 will go toward climate finance-eligible initiatives that will directly lower greenhouse gas emissions. Additionally, AIIF4 is eligible for the 2X Challenge due to the fact that 50% of the AIIM workforce is made up of women and due to its dedication to improving possibilities for women in entrepreneurship, employment, leadership, and consumption in 30% of AIIF4's portfolio firms.

Head of Infrastructure and Climate Funds, at British International Investment, Ryan Wagner, said “For over a decade, BII has proudly been an active partner to AIIM, an institutional fund manager with long-term industry expertise and on-ground knowledge of the Africa infrastructure space. We are pleased that our partnership alongside FMO and Old Mutual will serve to mobilise further capital to help meet AIIF4’s target size, playing a role in meeting Africa’s infrastructure needs.

“AIIF4 clearly aligns with BII’s core infrastructure strategy, and we are confident that our capital will help modernise cities and services and accelerate social and economic prosperity for people and communities across the continent.”

"FMO is happy to assist AIIM in the first close of AIIF4 as a cornerstone investor and appreciates the dedication displayed by the AIIM team toward climate financing and gender equality," said Diana Wesselius, manager of private equity energy. We view AIIM as a long-term partner in supporting infrastructure development in line with our goal having already invested in the two predecessor funds and look forward to helping the improvement of the infrastructure on the African continent.

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