The Emerging Africa Infrastructure Fund (EAIF)

The Emerging Africa Infrastructure Fund (EAIF)

Providing long-term foreign currency loans across Africa.

At a glance

Established2001
PIDG members currently fundingUK aid, DGIS, Sida, SECO
Cumulative PIDG member funding$391.9m
Fund capacityAs of 31 December 2017, $310m (equivalent) of debt has been raised, denominated in $ and €
ChairDavid White
Managed byInvestec Asset Management Ltd
Total commitments as at 31 Dec 2017$1,344.2m to 71 projects that have reached financial close or been repaid
2017 commitments$178.1m to 8 projects that reached financial close, and $21m in additional refinancing to existing projects

Expected development feedback

2017Cumulative
Financially-closed projects*871
Total Investment Commitments (TICs) ($m)1,507.117,187.3
Private Sector Investment commitments ($m)791.410,827.8
% of TICs in DAC I/II72.5%
% of TICs in FCAS69.42%
Access (in millions)*10.8128.6
Job creation: short-term2,60218,391
Job creation: long-term78721,078
Fiscal benefits ($m)77.01,609.7

Notes

* There were two refinancings of already-existing projects that occurred during 2017 – for Bugoye and Indorama Eleme Fertiliser – the increases to the TICs and PSI resulting from these have been included in the cumulative figures

Projects that reached financial close in 2017

AfricaHelios Towers
MadagascarRavinala Airports
MaliAkuo Kita Solar
MaliAlbatros Energie
MozambiqueCentral Termica de Ressano Garcia Energy
MozambiqueMocuba Solar
RwandaKigali Bulk Water
SenegalTobene II

Projects that became operational in 2017

Cote D'IvoireCiprel Expansion
GhanaTICO Takoradi Expansion Project
Multiple countriesSmart Energy Solutions
Multiple countries Smart Energy Solutions SenegalTobene II
UgandaSoroti Solar PV
UgandaTororo Solar PV

Achievements in 2017

2017 marked EAIF’s 15th full year of operation. During 2017 it brought eight projects to financial close, investing a total of $178m and leveraging $791m private sector capital.

In Rwanda, EAIF led the arrangement of financing for the landmark Kigali water treatment plant which will provide a clean water supply for 500,000 people. It is one of the first water schemes of its kind to be developed using a PPP model in sub-Saharan Africa.

In Mali, a new market for EAIF, two innovative power projects were brought to fruition in partnership with other PIDG companies. The 90MW Albatros power plant, also supported by GuarantCo and TAF, will add 30% to base load as the country’s first IPP. In southern Mali, the 50MW Akuo Kita solar plant will provide renewable power for up to 712,000 people. Also supported by GuarantCo, Akuo Kita is the country’s first private sector solar farm.


Other notable highlights

The Tororo solar farm is now generating renewable power for an estimated 67,000 people through Uganda’s national grid. The 10MW plant will reduce CO2 emissions by 7,200 tonnes per year, equivalent to that of 2,800 petrol powered cars.

Upgrades to runways and passenger terminals at Madagascar’s Antananarivo and Nosy Be airports are now underway. EAIF’s €25m long-term loan, its first in the country, will help boost trade and tourism on the island.


2018 and beyond

In order to secure financial resources to meet its ambitious investment plan for the next five years, EAIF has finalised $385m of new investment from public and private sector institutions, including a $110m commitment from European insurer Allianz.

In addition, the African Development Bank (AfDB) is providing a total of $75m over ten years as a returning lender to EAIF. Standard Chartered Bank is increasing and extending its existing lending to $50m. Underlining its continuing support, KFW is contributing $50m and €75m, both over 12 years, and FMO is lending $50m over 10 years.

EAIF has an established role as an experienced and innovative lead arranger of project finance which it will continue to cultivate, adding a higher level of additionality to its investments.

EAIF will encourage new sources of infrastructure investment from both the public and private sectors. This includes mobilising additional sharia-compliant finance specialist lenders such as the Islamic Development Bank.

 

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