Washington, D.C., April 7, 2010—IFC,
a member of the World Bank Group, has signed an agreement to invest $100
million in the Africa Infrastructure Investment Fund 2, an equity fund
that will promote the development of basic infrastructure in Africa.
The equity fund plans to raise $600
million 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.
“AIIF 2 is a vital addition to the
pool of specialized African infrastructure equity capital,” said Andrew
Johnstone, Managing Director of African Infrastructure Investment Managers.
“It will facilitate the development and sustainable operation of
a number of infrastructure projects, which are critical to accelerating
Africa’s development. It is also an important step for the continued expansion
of our participation in Africa and we anticipate will meet investors’
expectations on financial, social, and environmental levels.”
Lack of infrastructure is hampering growth in Sub-Saharan African economies,
hindering their 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.
“IFC’s commitment signals our strong
support for a fund that will address a key constraint for developers of
infrastructure projects in African countries—namely the availability of
equity capital,” said Bernard Sheahan, IFC Director of Infrastructure.
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. It is currently seeking a capital increase
to strengthen its ability to create opportunity for the poor in developing
countries—including investments in infrastructure funds across the globe.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About the African Infrastructure
AIIM is a joint venture that was established
in 2000 by Macquarie Africa (Pty) Ltd, a member of the Macquarie Group
of Australia, and Old Mutual Investment Group (South Africa) (Pty) Ltd.
AIIM is the leading manager of unlisted infrastructure equity funds
in the Sub-Saharan region and draws upon the considerable experience of