African Infrastructure Investment Managers (AIIM), a private equity fund manager focused on infrastructure, is raising $376 million. The funds will be used to finance renewable energy in SADC countries.
African Infrastructure Investment Managers (AIIM) is raising capital for renewable energy in Southern Africa. The private equity fund manager is raising 5.5 billion South African rand ($376 million). The new commitments were secured from 19 major South African institutional investors and pension funds, with two-thirds of the capital committed by new investors in IDEAS Managed Fund (Ideas).
AIIM established the fund in 1999 to make equity investments in economic infrastructure (roads and railroads), social infrastructure (housing) and renewable energy infrastructure (solar and wind projects) in the Southern African Development Community (SADC) countries.
Investments in RE, but not only…
“The current fundraising has been concluded to support the deployment of a portfolio of assets in the power, digital infrastructure and transport sectors over the next three years, underpinned by long-term economic and environmental sustainability objectives,” says AIIM. Since its launch and with the implementation of a policy encouraging private sector investment in renewable energy in South Africa, Ideas has played an important role, allocating 75% of its investments in this dynamic sector.
The fund has been actively involved in several phases of the ambitious Renewable Energy Independent Power Producer Procurement Program (REIPPP). Ideas manages stakes in several operating solar and wind farms in South Africa, including Bokamoso (75 MWp), Waterloo (75 MWp), Kangnas (140 MW), Roggeveld (147 MW), Khobab (140 MW) and Perdekraal East (110 MW).
“These investments represent about 25% of the clean energy supplied to the South African grid, which will offset 3.7 million tons of CO2 equivalent in 2020 and supply the equivalent of 1.1 million homes with clean energy,” says AIIM. However, its fund continues to maintain assets in fossil fuels, including the Kelvin coal-fired power plant (600 MW) in South Africa, the Gigawatt thermal power plant (120 MW) in Mozambique and the Matola gas pipeline between South Africa and Mozambique.
Jean Marie Takouleu