Investec Asset Management recently announced that it has been appointed to manage the ~US $670 million Emerging Africa Infrastructure Fund (EAIF), a public-private partnership anchored by the governments of the United Kingdom, The Netherlands, Sweden and Switzerland.
This announcement further deepens Investec Asset Management’s pan-African investment expertise and follows the recent launch of the Growthpoint Investec African Properties platform to invest in pan-Africa real estate, and the recent closure of its second Africa private equity fund.
EAIF is an initiative of the donor-financed Private Infrastructure Development Group and was developed to mobilise capital in to private sector infrastructure projects across sub-Saharan Africa. Established in 2002, the Fund has committed over US$1.2billion to 63 projects in 19 countries.
The Fund aims to achieve three main objectives:
- To catalyse African infrastructure projects through providing long-term debt and mezzanine finance on commercial terms tailored to local needs
- To invest in sustainable businesses with skilled management teams and clear potential to improve economies and help reduce poverty
- To deliver on both investment and specific development goals.
In addition to the equity provided by the UK, The Netherlands, Sweden and Switzerland, lenders includes a combination of private sector financial institutions and development finance institutions.
Hendrik du Toit, CEO, Investec Asset Management, explains: “The private sector has a crucial role to play in unlocking the conditions for the sustainable, long-term development of Africa’s infrastructure. A major initiative of its kind globally, this fund aims to provide growth capital, expertise and support to these projects with the aim of stimulating economic development, encouraging growth and employment, and fuelling Africa’s long-term development.”
Investec Asset Management will manage the entire process from seeking out projects, evaluating loan applications, carrying out due diligence and managing the administration of transactions. Investec Asset Management will also market the Fund internationally and monitor the loan portfolio.