Finance

IFC commits $50mln for infrastructure development in Africa and Asia

Tuesday, 19 December 2023 20:15
IFC commits $50mln for infrastructure development in Africa and Asia

(Ecofin Agency) - The International Finance Corporation's (IFC) investment in the second fund of A.P. Moller Capital is awaiting approval since August 31, 2023. The institution, led by Senegalese Makhtar Diop, aims to increase its commitments to sustainable energy and transportation in Africa and Asia.

The International Finance Corporation (IFC) confirmed on Monday, December 18, 2023, its equity investment of $50 million in the Emerging Markets Infrastructure II (EMIF II) fund. This investment had been awaiting IFC Board approval since August 31, 2023.

Launched in July 2023 by A.P. Moller Capital, EMIF II is focused on infrastructure projects in Africa and Asia. It aims to raise $1 billion to address critical infrastructure gaps in transport and renewable energy in high-growth countries in Africa, South Asia, and Southeast Asia.

About 60% of the capital raised by EMIF II will be dedicated to land transport infrastructure projects (ports and storage, roads and railways, warehouses, and distribution), and competitiveness improvement. The remaining 40% will be allocated to renewable energy and distribution infrastructure.

According to the IFC, developing economies in Africa and Asia suffer from chronic underinvestment in their transport networks, impacting their socio-economic development. The institution also notes that Africa, Southeast Asia, and South Asia represent 16% of the world's total primary energy consumption. By engaging with EMIF II, the IFC aims to increase its investments in sustainable energy and transportation within emerging markets.

The IFC's $50 million contribution to EMIF II comes two weeks after the German Investment and Development Company (DEG) invested $50 million in the same fund.





 
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