The African Development Bank (AfDB) has formally approved a $100 million loan to the Emerging Africa and Asia Infrastructure Fund (EAAIF), a key investment vehicle strategically managed by the global investment firm Ninety One. This significant financial injection is designed to accelerate critical infrastructure development across emerging markets.
This latest commitment from the AfDB is an essential component of EAAIF’s overarching debt-raising strategy. The fund has ambitious plans for securing long-term capital:
- 2025 Capital Target: EAAIF aims to raise a total of $300 million in long-term debt capital throughout 2025.
- Total Investment Channeling: The new financing, combined with EAAIF’s existing capital base, will empower the fund to deploy over $850 million into infrastructure projects spanning Africa and Asia.
- Timeframe: This massive investment is scheduled to be channeled by 2027.
The $850 million in projected investments will be strategically focused on sectors vital for modern economic growth and climate resilience, including:
- Energy Generation: Supporting power infrastructure, with an explicit emphasis on renewable energy projects.
- Transport Networks: Enhancing logistics and connectivity across regions.
- Digital Connectivity: Expanding access to modern communication and internet services.
- Climate Resilience: Funding infrastructure built to withstand and adapt to climate change impacts.
The AfDB’s approval underscores the strength of its relationship with EAAIF. The $100 million loan marks the fourth time the Development Finance Institution (DFI) has provided financing to the fund, signifying a robust and enduring collaboration built on shared development goals.
Mike Salawou, Director of the Infrastructure and Urban Development Department at the AfDB, highlighted the loan’s multifaceted strategic importance:
- Unlocking Critical Finance: The partnership is a direct mechanism for “unlock[ing] long-term financing” required for essential projects that serve as the backbone of economies, leading to job creation and improved quality of life across Africa.
- Catalyzing Private Capital: Crucially, this collaboration directly addresses the massive “continent’s infrastructure financing gap” by using DFI funds as a catalyst to attract private capital into high-impact projects within emerging and frontier markets.
Sumit Kanodia, Director at Ninety One, expressed the fund manager’s enthusiasm for the strengthened partnership:
- Investment Capacity: The new capital from the AfDB is instrumental in enabling EAAIF to significantly finance more renewable energy, digital, and transport projects.
- Development Outcomes: The ultimate goal of these investments is to generate tangible development outcomes: driving inclusive growth, creating sustainable jobs, and building essential climate resilience within the served regions.
The transaction is fundamentally a demonstration of how multilateral development banks are leveraging funds to de-risk and attract private investment into essential infrastructure, focusing particularly on future-proof sectors like renewable energy and digital connectivity.
