Abidjan, 12 August 2023 (TDI): In a recent move to bridge Africa’s infrastructure funding gap, the African Development Bank (AfDB) has announced a $20 million investment in the Pembani Remgro Infrastructure Fund II.
This investment is set to catalyze the development of various sectors across the continent, focusing on digital infrastructure, renewable energy, and transportation.
The @AfDB_Group will make a $20M investment in the Pembani Remgro Infrastructure Fund II. Focused on digital infrastructure, #renewableenergy, transport and other sectors, the investment will help fill Africa’s annual $100B infrastructure funding gap. https://t.co/Qo1LM71PUq pic.twitter.com/nNmXrm8wNA
— African Development Bank Group (@AfDB_Group) August 10, 2023
Established in 2012, Pembani Remgro Infrastructure Managers oversees the Pembani Remgro Infrastructure Fund II and is based in South Africa.
The investment will primarily target industrial and green infrastructure projects. With this financial backing, the Pembani Remgro Infrastructure Fund II aims to raise $400 million from diverse investors, including private, commercial, and institutional entities.
The fund will also channel investments into companies located in key economies of sub-Saharan Africa. This includes nations like South Africa, Kenya, Ghana, Nigeria, Angola, and others.
Moreover, these funds will be allocated to various projects, from digital infrastructure and renewable energy to logistics, waste recovery, and energy-efficient heating and ventilation systems.
Additionally, the fund will support the development of resilient regional value chains and innovative infrastructure technologies.
The fund’s investment strategy aligns seamlessly with the African Development Bank’s Ten-Year Strategy, emphasizing green and inclusive growth.
It also resonates with the bank’s focus areas, the “High 5s”, and its climate change and green growth strategy for 2021-2030.
This initiative is expected to bolster the implementation of nationally determined contributions in the target countries, promoting better climate funding flows and supporting the objectives of the Paris Agreement on climate change.
The African Development Bank remains steadfast in its commitment to mobilizing private capital for infrastructure development in Africa, addressing the estimated annual $100 billion funding shortfall.
Abdu Mukhtar, Director of the Industrial and Trade Development Department at the African Development Bank, shared, “Our operations empower funds like the Pembani Remgro Infrastructure Managers to channel investments into pivotal industrial and infrastructure projects in Africa. This not only spurs economic growth but also creates jobs, enhances business efficiency, and combats climate change impacts.”
Wale Shonibare, Director of the African Development Bank’s Energy Financial Solutions, Policy and Regulation Department, emphasized, “Bridging the infrastructure gap is crucial for Africa’s economic prosperity and sustainable growth.”