EIB supports infrastructure projects in Africa with $80 million

The European Investment Bank (EIB) has committed $80 million in equity to finance infrastructure projects in sub-Saharan Africa.

The investment, which is in equity to Africa’s Pembani Remgro Infrastructure Fund II (PRIF II), was announced Thursday at the Africa Investment Forum. The fund is the EIB’s largest commitment to an African fund.

It will fund renewable energy, digital infrastructure and transportation initiatives that support climate action, environmental sustainability and local economies.

EIB is the long-term lending institution of the European Union. It finances investments that contribute to EU policy objectives.

The pledge is the bank’s largest commitment to an African fund, which is aimed at boosting climate action, job creation and the energy and digital transitions.

Pembani Remgro Infrastructure Fund

Pembani Remgro Infrastructure Fund II is a U.S. dollar-denominated 10-year closed-end fund sponsored by and managed by Pembani Remgro Infrastructure Managers.

The fund targets $400 million for investing in African infrastructure. The maiden version, PRIM I, managed $300 million, committed to 11 infrastructure investment.

The Fund targets South Africa, Kenya, Ghana, Nigeria, and Angola. Other focus countries include Uganda, Zambia, Mozambique, Botswana, Namibia, Cote d’Ivoire, Sierra Leone, Ethiopia, and Rwanda.

Every year, Africa faces a $100 billion gap in infrastructure financing, which limits growth and access to essential services. Despite its renewable energy potential, Africa only receives 2% of global clean energy investment.

PRIF II will invest in climate action projects that support initiatives in line with the EIB’s Climate Bank Roadmap. The fund will also support projects to improve transport connectivity and achieve equitable access to secure and affordable digital infrastructure, in an aim to encourage sustainable development across the continent.

The fund will first invest in an Africa-wide data centre platform, expanding digital connectivity and addressing the digital divide, with 900 million people in Africa still lacking access to the internet.

Who said what?

EIB vice-president Ambroise Fayolle said it is the bank’s largest commitment to an African fund, saying it reflects their commitment to Africa.

“Our $80 million equity investment in the Pembani Remgro Infrastructure Fund II will help to address important issues such as clean energy, digital access, transport connectivity and job creation. Strengthening partnerships such as this one is key to building a sustainable future,” he said.

The chief executive officer of PRIF II, Herc van Wyk, expressed his delight on the progress recorded by the initiative so far.

“We are delighted to welcome the EIB as a major investment partner in PRIF II and look forward to a long-term partnership to address the infrastructure needs in Africa.”

The fund is expected to create 1 400 full-time jobs and will focus on projects that promote inclusive growth.