Blue Earth Capital has committed $20 million to African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM). The investment aims to support the development of sustainable infrastructure in Africa, addressing the continent’s chronic shortage of high-quality essential services. Despite strong demand for infrastructure, Africa faces a significant funding gap, and AIIF4, with Blue Earth’s support, will target growth and value-add infrastructure in digital infrastructure, energy transition, and mobility sub-sectors.
Key Points:
- Investment Commitment:
- Blue Earth Capital, through its investment vehicles, has committed $20 million to African Infrastructure Investment Fund 4 (AIIF4).
- The commitment is intended to support the development of sustainable infrastructure in Africa and address the significant funding gap in the region.
- Partnership with AIIM:
- AIIF4 is managed by African Infrastructure Investment Managers (AIIM), a member of Old Mutual Alternative Investments.
- Blue Earth Capital is delighted to partner with AIIM, aligning with its “total impact” model and addressing the infrastructure challenges in Africa.
- Infrastructure Funding Gap in Africa:
- Africa faces an estimated infrastructure funding gap of approximately $68-108 billion per annum.
- Less than 1% of the $587 billion raised for global infrastructure funds since 2016 has been allocated to the continent.
- Investment Focus:
- AIIF4, with support from Blue Earth Capital, will target growth and value-add infrastructure within digital infrastructure, energy transition, and mobility sub-sectors.
- The investment aims to provide strategic and operational support to portfolio companies and contribute to sector-specific impact priorities.
- AIIM’s Track Record:
- AIIM has been investing in the African infrastructure sector since 2000 and has a track record extending across eight African infrastructure funds.
- AIIM manages an aggregate AUM of $2.7 billion across various infrastructure sectors, including power, renewable energy, digital infrastructure, mid-stream energy, and transport.
- Blue Earth Capital’s Impact Focus:
- Blue Earth Capital operates as a global, independent, specialist impact investor, seeking measurable impact alongside sustainable financial returns.
- The commitment to AIIF4 aligns with Blue Earth Capital’s focus on addressing pressing social and environmental challenges.
Conclusion:
Blue Earth Capital’s commitment of $20 million to African Infrastructure Investment Fund 4 (AIIF4) highlights the importance of addressing Africa’s infrastructure challenges and the need for increased investment in sustainable projects. The collaboration with AIIM aims to support the development of infrastructure in key sub-sectors, including digital infrastructure, energy transition, and mobility. The focus on impact priorities underscores the commitment to delivering measurable positive outcomes alongside financial returns. This investment contributes to efforts aimed at bridging the infrastructure funding gap in Africa, addressing essential service needs, and promoting sustainable development on the continent.
