By Emma Ujah
ABUJAâ€”THE International Finance Corporation, IFC, a member of the World Bank Group, has agreed to invest $100 million in the Africa Infrastructure Investment Fund 2, an equity fund that would promote the development of basic infrastructure in Africa.
A statement issued by the corporation in Washington, yesterday, said the equity fund plans to raise up to $1 billion to invest in unlisted equity and equity-like infrastructure investments in sub-Saharan Africa.
The fund will take significant stakes in a range of infrastructure projects including toll roads, wind power farms, and other renewable energy projects, ports, water and sewerage utilities, and social infrastructure.
The fund, known as AIIF2, was established by African Infrastructure Investment Managers Proprietary Ltd, a joint venture between Macquarie Africa Pty Ltd, part of the Macquarie Group, and the Old Mutual Investment Group (South Africa) Pty Ltd, which will advise the fund on investment matters.
Andrew Johnstone, Managing Director of African Infrastructure Investment Managers, said: â€œAIIF 2 is a vital addition to the pool of specialized African infrastructure equity capital.
â€œIt will facilitate the development and sustainable operation of a number of infrastructure projects, which are critical to accelerating Africaâ€™s development. It is also an important step for the continued expansion of our participation in Africa and we anticipate will meet investorsâ€™ expectations on financial, social, and environmental levels.â€
Lack of infrastructure is hampering growth in sub-Saharan African economies, hindering its quest for global competitiveness and poverty reduction. IFC is helping develop assets such as a reliable power supply and road networks, which are essential for economic growth and sustainability and for improving the quality of life of the people living within and across the communities they serve.