Two development finance institutions have backed the fourth fund from African Infrastructure Investment Managers, which has a target size of $500 million. British International Investment, formerly known as CDC Group, has committed $76 million and FMO, the Dutch development bank, has committed $40 million. The two LPs join financial services group Old Mutual, which has cornerstoned the fund.
African Infrastructure Investment Fund 4 will invest in “high-impact infrastructure projects across the continent” in three priority subsectors: renewable energy, such as rooftop solar; digital infrastructure, including mobile telecoms towers, data centres and fibre optic networks; and mobility and logistics, such as ports, roads and other supporting infrastructure.
At least 20 percent of the fund will be invested in “climate qualifying projects”, according to a press release. The fund also qualifies under the 2X Challenge, an initiative to mobilise capital towards female empowerment in emerging markets.