AFRICA: BII and FMO invest $116 million in sustainable infrastructure through AIIF4

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AFRICA: BII and FMO invest $116m in sustainable infrastructure through AIIF4©Fly_and_Dive/Shutterstock

The Netherlands Development Finance Corporation (FMO) and British International Investment (BII) have announced a joint investment of $116 million in the African Infrastructure Investment Fund 4 (AIIF4). The fund will support the development of sustainable infrastructure in Africa.

The Netherlands Development Finance Company (FMO) and British International Investment (BII) are once again joining forces to support sustainable development in Africa. The two financial institutions have decided to inject $116 million into the African Infrastructure Investment Fund 4 (AIIF4). With a target capitalization of $500 million, AIIF4 is managed by African Infrastructure Investment Managers (AIIM), a fund manager owned by the London, UK-based Old Mutual Financial Group.

In the recently announced investment, the BII is contributing $76 million, while the FMO is contributing $40 million. According to the two financial institutions, the funding will support sustainable development in Africa through investments in several key areas. In the renewable energy sector, AIIF4 will invest in the construction of rooftop solar systems. In digital infrastructure, the fund will target telecom towers, data centers, and fiber optic networks.

Read also- AFRICA: IFC, FMO and BII allocate $165 million to SME climate projects

In the transportation sector, the IIA will invest in ports, roads, and other supporting infrastructure. According to the BII, the AIIF4 will help close the infrastructure financing gap, estimated at about $108 billion a year, by financing “reliable” infrastructure across the continent.

“At least 20 percent of the capital committed to AIIF4 will be invested in climate finance-eligible projects that will directly contribute to the reduction of greenhouse gas (GHG) emissions,” the BII promises. The AIIF4 follows the AIIF3 through which the AIIM has also invested in transport infrastructure, energy and digital in Africa. Through its various funds, AIIM has multiplied its investments in recent years in South Africa, Kenya, Nigeria and Ivory Coast.

Jean Marie Takouleu

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