African Development Bank Invests $20 Million in Pembani Remgro Infrastructure Fund II

The African Development Bank (AfDB) has announced a $20 million investment in the Pembani Remgro Infrastructure Fund II in Côte d’Ivoire. The Bank’s investment will allow the Fund to raise up to $400 million from private, commercial or institutional investors to invest in industrial and infrastructure projects in Africa.

The Pembani Remgro Infrastructure Fund II would finance businesses with headquarters in South Africa, Kenya, Ghana, Nigeria, and Angola, some of sub-Saharan Africa’s most developed nations. Other nations include Ethiopia, Rwanda, Côte d’Ivoire, Uganda, Zambia, Mozambique, Botswana, Namibia, and Sierra Leone.

The Pembani Remgro Infrastructure Fund II’s proceeds will be used to finance industrial and infrastructure projects in the areas of digital infrastructure, the energy transition (i.e., renewable energies), logistics and transportation, waste recovery, heating, ventilation, and air conditioning, with an emphasis on energy efficiency. Additionally, robust regional value chains and infrastructure technologies will be developed using them.

The Ten-Year Strategy of the African Development Bank, which emphasises inclusive and green growth, is aligned with the investment strategy of the Fund. Additionally, it is in line with the Bank’s “High 5s” list of priorities. Additionally, the initiative is in line with the 2021–2030 African Development Bank Strategy on Climate Change and Green Growth. It is anticipated to contribute to bettering the way nationally specified contributions are implemented in target nations. This will result in improved climate financing flows in these nations and help achieve the goals outlined in the Paris Climate Agreement.

The African Development Bank is committed to helping mobilize private capital to fund infrastructure in Africa. It estimates that there is an annual $100 billion funding gap.

Abdu Mukhtar, director of the Industrial and Trade Development Department at the African Development Bank, said: “The Bank’s operations help capital investment funds like the Pembani Remgro Infrastructure Managers to mobilize investments aimed at industrial and infrastructure projects on the [African] continent. These [operations] contribute to economic growth and job creation, improving business efficiency, mitigating the effects of climate change and improving levels of health and education.”

Wale Shonibare, director of the African Development Bank’s Energy Financial Solutions, Policy and Regulation Department, said: “It is essential to cover the infrastructure gap to ensure economic prosperity and sustainable development in Africa.”

Pembani Remgro Infrastructure Managers manages the Pembani Remgro Infrastructure Fund II. It is a fund manager formed in 2012 and based in South Africa.