Over the next three years, Emerging Africa Infrastructure Fund hopes to raise up to $500 million for investments in infrastructure initiatives throughout the continent.
To enter its next growth phase, the EAIF requires the additional funding, said Martijn Proos, director at London-and Johannesburg-listed firm Ninety One, which manages the fund. “We are open to Africa, we are open for business where there are good opportunities,” he said in an interview.
The Private Infrastructure Development Group established the EAIF in 2001, and it is heavily funded by the governments of the United Kingdom, the Netherlands, Switzerland, and Sweden. It primarily provides debt capital and has invested $2.1 billion in more than 90 projects across Africa.
In an effort to bolster interest from investors, Proos said the fund this week received its first-ever credit rating from Moody’s Investors Service—a foreign currency long-term issuer rating of A2 with a stable outlook.
The fund is banking on increased interest in Africa from investors looking for bigger returns than they can get in Europe and the US.
In 2018, the fund raised $385 million in debt capital, with insurance giant Allianz Global Investors participating in the round. Other investors include Standard Chartered Bank, the African Development Bank, the German development finance institution KFW, and FMO, the Dutch development bank.
It currently has a $1.15 billion active loan portfolio spread across 17 African countries and infrastructure, including power, telecommunications, and transportation. Its loans range from $10 million to $65 million per project and can last up to 20 years.
