South African-based Pembani Remgro Infrastructure Fund II (PRIF II) received a boost yesterday as the European Investment Bank (EIB) committed $80 million (R1.4 billion) in equity to the fund to finance infrastructure projects in sub-Saharan Africa.
This investment was announced yesterday at the Africa Investment Forum hosted by the African Development Bank (AfDB) in Rabat, Morocco.
This is the EIB’s largest ever commitment to an African fund and it is aligned with the EU Global Gateway strategy to support infrastructure in Africa.
It will fund renewable energy, digital infrastructure and transportation initiatives that support climate action, environmental sustainability and local economies and society.
EIB Vice-President Ambroise Fayolle said the fund will first invest in an Africa-wide data centre platform, expanding digital connectivity and addressing the digital divide, with 900 million people in Africa still lacking access to the internet.
“This is the EIB’s largest commitment to an African fund. It reflects our commitment to Africa,” Fayolle said.
“Our $80m equity investment in the Pembani Remgro Infrastructure Fund II will help to address important issues such as clean energy, digital access, transport connectivity and job creation. Strengthening partnerships such as this one is key to building a sustainable future.”
Every year, Africa faces a $100bn gap in infrastructure financing, which limits growth and access to essential services.
Despite its renewable energy potential, Africa only receives 2% of global clean energy investment. PRIF II will invest in climate action projects that support initiatives in line with the EIB’s Climate Bank Roadmap.
The fund will also support projects to improve transport connectivity and achieve equitable access to secure and affordable digital infrastructure, in an aim to encourage sustainable development across the continent.
Herc van Wyk, CEO of PRIF II, said the fund was expected to create 1 400 full-time jobs and will focus on projects that promote inclusive growth.
Van Wyk said the EIB financing will enable the fund manager to leverage additional private and public funding, helping the fund exceed its target size with total commitments worth $355m, further enabling the fund to deliver impactful projects on the ground.
“We are delighted to welcome the EIB as a major investment partner in PRIF II and look forward to a long-term partnership to address the infrastructure needs in Africa,” he said.
The fund adheres to global environmental and social responsibility standards and aims to qualify for the 2X Challenge, advancing gender equality and creating opportunities for women and young entrepreneurs.
This operation underlines the importance of the EIB’s contribution to the EU Global Gateway strategy, which plans to mobilise €300bn for global infrastructure by 2027, with half dedicated to Africa.
Founded in 2012, South African-based investment manager Pembani Remgro Infrastructure Managers (PRIM) has established itself as a leading player in African infrastructure investment through its first fund, Pembani Remgro Infrastructure Fund I (PRIF I) and PRIF II.
Proparco, a development finance institution partly owned by the French Development Agency (AFD) and private shareholders from the developed countries, in September committed a $15m investment in PRIF II, reinforcing its commitment to supporting sustainable infrastructure development across Africa.
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