02 August 2024
The African Development Bank has signed a $20 million equity investment in the African Infrastructure Investment Fund 4 (AIIF4), reinforcing the Bank’s commitment to fostering private sector development and boosting infrastructure across the continent.
Africa’s infrastructure sector remains a significant investment opportunity, driven by substantial demand deficits and a scarcity of capital. With rapid urbanization and increasing local purchasing power, the continent requires between $130-170 billion annually in infrastructure spending. However, there’s currently a substantial yearly financing gap of $68-108 billion.
The Fund is projected to deliver significant development outcomes, particularly in private sector growth and household income improvement.
“By providing this scarce private equity investment to AIIM to bridge the infrastructure financing gap in Africa, the Bank is reinforcing its commitment and support to developing infrastructure in Africa to private sector participation. Therefore, our confidence in AIIM as a fund manager is renewed and strong, given its proven expertise and track record in driving impactful investments,” said Mike Salawou, director for infrastructure, cities and urban development, African Development Bank.
