Kenya is among six countries in Africa that International Finance Corporation will put in $30 million (Sh4.8 billion) equity investment to fund works on essential infrastructure.
The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with focus on Côte d'Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
In the telecoms sector, the fund will target data centres, fibre networks, and communications towers. In the energy sector, utility-scale renewable energy platforms and commercial and industrial projects are targeted.
In the transport infrastructure sector, the fund will prioritise investments in mobility and logistics, bulk-handling infrastructure, and temperature-controlled logistics.
IFC capital injection will help Africa Infrastructure Investment Fund 4 Partnership (AIIF4) exceed its final close target of $500 million (Sh80.4 billion).
According to IFC Africa Regional Industry Director for Infrastructure and Natural Resources, Sarvesh Suri, the investment underscores IFC's commitment to supporting private sector projects that drive access to opportunity and support development in Africa.
"IFC's partnership with AIIM will support the development of digital assets and bolster the crucial renewable energy and transportation sectors in several countries across Africa," said Suri.
In 2023, IFC committed $43.7 billion(Sh7 trillion) to private companies and financial institutions in developing countries.
This was aimed at leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
Suri said that private and development finance investments are essential to helping governments across Africa meet their growing infrastructure needs, deliver services, and strengthen their economies.
IFC's investment in the AIIF4 fund is aligned with the World Bank Group's Digital Economy for Africa (DE4A) initiative, which aims to bridge the digital connectivity gap in sub-Saharan Africa.
It forms part of the World Bank Group's strategy to accelerate the pace of electrification in Africa to achieve universal access to power on the continent by 2030.
IFC, a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets.
“We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries,” said Suri.
