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IFC approves $30m to support infrastructure development

To boost essential infrastructure development in countries across Africa, the International Financial Corporation (IFC) has announced a $30 million equity investment in the Africa Infrastructure Investment Fund 4 Partnership (AIIF4).

The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d'Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.

In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In the energy sector, the fund will target utility-scale renewable energy platforms and commercial and industrial projects. In the transport infrastructure sector, the fund will prioritize investments in mobility and logistics, bulk-handling infrastructure, and temperature-controlled logistics.

IFC's $30 million, own-account investment will help AIIF4 exceed its final close target of $500 million.

"IFC's partnership with AIIM will support the development of digital assets and bolster the crucial renewable energy and transportation sectors in several countries across Africa. This investment underscores IFC's commitment to supporting private sector projects that drive access to opportunity and support development in Africa," IFC Regional Industry Director for Infrastructure and Natural Resources, Africa, Sarvesh Suri, said.

Private and development finance investment are essential to helping governments across Africa meet their growing infrastructure needs, deliver services, and strengthen their economies.

IFC's investment in the AIIF4 fund is aligned with the World Bank Group's Digital Economy for Africa (DE4A) initiative, which aims to help bridge the digital connectivity gap in sub-Saharan Africa. It forms part of the World Bank Group's strategy to accelerate the pace of electrification in Africa to achieve universal access to power on the continent by 2030.

IFC, a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.