Puleng Pitso, Investment Officer at Ninety One | Emerging Africa and Asia Infrastructure Fund (EAAIF), explains how the fund acts as the architect of Africa’s physical internet through a holistic systemic approach. In this exclusive interview, she highlights investments in WIOCC, Raxio data centres and Africa REN in Senegal to prevent duplication and ensure assets remain operational. Puleng Pitso’s insights show that EAAIF is a true partner helping Africa achieve affordable, reliable and sovereign digital transformation. It also delivers more affordable data services for citizens, supports local digital sovereignty by providing catalytic long-term debt financing that complements rather than competes with local banks, and builds resilient digital-energy ecosystems for inclusive, sustainable development across the continent.

Ecofin Agency: The Emerging Africa and Asia Infrastructure Fund positions itself as an architect of the physical internet, going beyond mere liquidity provision. How exactly does your systemic approach prevent the duplication of infrastructure that has traditionally made African telecoms so costly?

Puleng Pitso: I believe it begins with how we perceive the physical internet and the value chain that underpins it in this digital age. We consider the value chain in three layers. The first layer is connectivity: the submarine cables that connect the continent to the rest of the world, the backhaul, and the domestic long-distance networks that extend capacity from the coast to inland areas. The second layer is interconnectivity, which includes data centres – that act as storage and exchange hubs that enable even greater connection and improved latency. The third layer is the market itself, where internet services are provided to end users.

By mapping the ecosystem in this way, we can identify opportunities for shared infrastructure and allocate capital where it strengthens the system rather than contributing to duplication.

Across all three layers, energy is a critical enabler. Reliable and affordable power underpins the entire ecosystem. As the Emerging Africa and Asia Infrastructure Fund, we take a holistic view of the value chain – from connectivity to interconnectivity. By mapping the ecosystem in this way, we can identify opportunities for shared infrastructure and allocate capital where it strengthens the system rather than contributing to duplication. One example is West Indian Ocean Cable Company Ltd (“WIOCC”), an end-to-end enabler of an interconnected digital ecosystem, operating across the connectivity and interconnectivity value chain with a strategy to expand into complementary downstream offerings. We back the business because of its robust, integrated value chain and diversified revenue streams. We recognise that revenue profiles will vary across the continent — some regions are already gaining momentum, while others are still developing. The key is understanding each market’s structure, its position within the value chain, and the underlying drivers of sustainable revenue growth.

Ultimately, companies that leverage shared infrastructure are better positioned to deliver more affordable data services to customers - that is what we observe on the ground.

In addition, as part of the PIDG (Private Infrastructure Development Group), the Emerging Africa and Asia Infrastructure Fund benefits from a wider ecosystem. Other PIDG entities support early-stage digital infrastructure development, helping to de-risk projects and move them toward bankability, while another provides equity to support growth and scale. By drawing on the complementary strengths of each entity at different stages of the digital infrastructure value chain, we are able to deploy capital more efficiently and cohesively. This integrated approach enhances cost-effectiveness and allows us to act not merely as a financier but as an architect of the broader infrastructure ecosystem.

Ecofin Agency: So, to summarise: you are financing the brains, data centres, and the signal – 5G and fibre optic. But if the underlying power grid across Africa is unstable, these assets become stranded. How is EAAIF addressing the energy–digital nexus to ensure these investments are operational and generating revenue around the clock?

Puleng Pitso: Power is a very essential part of this value chain – in many respects, it is the most critical enabler. As you rightly point out, the continent faces a significant dilemma in ensuring a sufficient power supply. Without reliable energy, digital assets risk becoming underutilised or stranded. The Emerging Africa and Asia Infrastructure Fund has invested over $500 million in renewable energy and transmission networks that provide the reliable, clean energy needed for digital infrastructure. Beyond that, we encourage our portfolio companies to prioritise clean and efficient energy use. For example, in the case of WIOCC, we have structured a sustainability-linked loan directly tied to achieving clearly defined sustainability targets, including the implementation of EDGE certification standards. Another example is Axian Telecoms, a telecoms business that has also expanded into the energy sector. We recognise the interdependence between energy and digital infrastructure and are working with the company to support growth in both areas, as they are mutually reinforcing.

We do not view digital infrastructure in isolation. Addressing the energy constraint is integral to ensuring these assets remain operational, resilient, and capable of generating revenue

In short, we do not view digital infrastructure in isolation. Addressing the energy constraint is integral to ensuring these assets remain operational, resilient, and capable of generating revenue.

Ecofin Agency: Should I understand that the 50-million-dollar close announced in late January for the investment in Africa REN, a renewable energy project in Senegal, is part of this broader strategy linking digital and energy infrastructure?

Puleng Pitso: That is correct. When we assess opportunities across different countries, we take a holistic view of the ecosystem rather than focusing on individual assets in isolation. That is what we refer to as our systemic approach.

Ecofin Agency: By funding local data centres, such as the one you have done with Raxio, you are betting on local data hosting, which is really important. But do you really think Africa is ready to host its own sovereign cloud, or are we just building local warehouses for global giants like Google and Amazon? Who are the core clients you are targeting when financing such projects – local or international?

Puleng Pitso: That is an interesting question, and I believe it is important to reframe it slightly. Ultimately, our role is to provide debt financing to projects or companies investing in data centres. We have a thorough process for assessing each project on its own merits through a rigorous credit and due diligence process - we do not set the sovereign cloud agenda. Our approach is to support companies that are working alongside governments that are advancing their digital landscape. We are guided by sovereign policy direction where countries are creating enabling environments for digital infrastructure. We provide debt capital to support the evolution, but we do not impose it. It is the role of governments to promote and create the platforms for success.

Tanzania is one example of a market that has taken deliberate steps to liberalise its digital infrastructure landscape, creating opportunities for operators such as Raxio. We provided debt financing to Raxio to support its expansion within that enabling policy environment. From a lenders perspective, our primary focus is on demand visibility — specifically, who will occupy and utilise the data centres. We are always pleased to see sovereigns utilising data centres, as it signals they are moving in a technology-forward direction, committed to digital transformation. We are also encouraged when we see local players take up space – and that is something we are beginning to observe more frequently across these markets.

Ecofin Agency: There is a sense that the massive wave of private credit rushing into Africa is crowding out local commercial banks, which are unable to leverage the region's technology value chain. How do you make sure you are not simply replacing the local bank? Are you working hand in hand with them?

Puleng Pitso: When considering investing digital infrastructure on the continent, it is always important to step back and assess where each market stands in its development cycle. Different stages require different types of capital. In the earliest phases, opportunities are typically equity-led, as sponsors assume development risk. As assets begin to scale and demonstrates revenue visibility and operational stability they move incrementally toward bankability, at which point longer-tenor, patient debt becomes increasingly appropriate. Emerging Africa and Asia Infrastructure Fund is positioned to provide longer-tenor debt to scale, at a stage where commercial banks may not yet be comfortable with the risk profile or tenor required. Our role is catalytic — helping businesses progress along the maturity curve and crowding in more conventional sources of capital over time.

As assets begin to scale and demonstrates revenue visibility and operational stability they move incrementally toward bankability, at which point longer-tenor, patient debt becomes increasingly appropriate

We have several examples, including Helios Towers. We provided initial debt financing to support their expansion phase, enabling the business to scale. As companies strengthen their balance sheets, build operating track records, and demonstrate stable cash flows, they become attractive to commercial lenders. At that stage, they are often able to access shorter-tenor debt on increasingly competitive terms aligned with their growth and maturity. Broadly speaking, we often play a catalytic role within the capital structure. In some cases, we act as an anchor lender, while in others we participate alongside commercial banks and institutional investors. We do not crowd out the market; rather, we enhance it.

Ecofin Agency: In your documentation, I saw a mention of “AI-ready infrastructure.” Is this just a marketing catchphrase for investors, or is there a genuine roadmap to integrate African-grown AI models into the data centres you are financing?

Puleng Pitso: The term “AI-ready” is not a marketing catchphrase. Our mandate is to finance bankable, impactful infrastructure opportunities. We recognise that AI is increasingly becoming a structural driver of demand within the digital infrastructure ecosystem. The growth in data processing requirements, storage needs, and low-latency connectivity is contributing to increased investment in data centres, fibre networks, and towers across the continent. Our role is not to define whether operators develop African-grown AI models or host global platforms. Rather, we finance infrastructure that is scalable, resilient, and capable of supporting evolving demands, including AI workloads where demand materializes. In some markets, we are beginning to see early signs of local AI development, enterprise cloud adoption, and government digitalisation initiatives. However, these developments sit within a broader digital transformation story.

Ecofin Agency: You present yourselves as gatekeepers of trust, ensuring that governance standards are respected, which is part of your LPs’ mandate. But many local companies in Africa lack the means to comply with the highest standards fully. How do you ensure you are not only financing the big players but also the smaller ones who also need the long-term capital you describe?

Puleng Pitso: HSES and governance standards are fundamental to the Emerging Africa and Asia Infrastructure Fund. In addition, we place a strong emphasis on development impact in our investment process, with a key metric being supporting local businesses and strengthening domestic capacity. A metric typically monitored for the life of our investment. For us, HSES acts as an enhancer rather than a barrier. In many cases, our involvement helps companies strengthen their governance and environmental and social frameworks over time. For example, in our engagement with Axian Telecoms, we supported the enhancement of their HSES and governance standards. Beyond individual transactions, the broader PIDG ecosystem also plays a role in strengthening local markets. PIDG was instrumental in the establishment of InfraCredit in Nigeria, acting as an anchor investor to help develop the domestic credit enhancement market and mobilise local capital.

Local currency financing can play meaningful role in protecting infrastructure from foreign exchange volatility, particularly in sectors such as telecommunications, where revenues are predominantly in local currency

Interventions of this nature help create more resilient and sustainable financing ecosystems over time. While governance standards are essential, our role is not limited to financing only the largest or most established players. It is also about supporting credible local businesses as they build toward international standards — and helping to deepen the markets in which they operate.

Ecofin Agency: You have been involved in the Sonatel local-currency transaction in Senegal. What lessons – in terms of opportunities and challenges – have you learned from that operation? And when can we expect to see more such transactions, given the pressures on African currencies?

Puleng Pitso: The Sonatel transaction provided important lessons. First it reinforced the value of aligning the currency of financing with the currency of revenues. It demonstrated that local currency financing can play meaningful role in protecting infrastructure from foreign exchange volatility, particularly in sectors such as telecommunications, where revenues are predominantly in local currency. By reducing currency mismatch risk, local-currency funding enhances financial resilience and long-term sustainability. Second, it highlighted both the opportunities and the constraints of local currency financing. On the opportunity side, we saw how such structures can deepen domestic capital markets, mobilise local institutional investors, and reduce reliance on costly hedging solutions. However, challenges remain — including market depth, liquidity constraints, pricing considerations, and regulatory frameworks that differ from country to country.

AI is increasingly becoming a structural driver of demand within the digital infrastructure ecosystem.

Given the pressures on African currencies in recent years, we expect local currency financing to become increasingly important. However, its expansion will depend on the maturity of domestic capital markets and the availability of long-term local capital. Nigeria is one market where we see potential, supported by its capital base and developing financial ecosystem. PIDG continues to explore opportunities to support impactful projects there. In such contexts, local-currency lending can be particularly valuable in mobilising the significant long-term capital required for infrastructure development.

Ecofin Agency: Infrastructure is a long-term game. But there is a need to balance long-term development impact with the exit requirements of private institutional capital. How do you manage that trade-off? What are your exit strategies?

Puleng Pitso: It is important to clarifying how we approach our investments. As a debt fund, our model differs fundamentally from that of private equity investors. We do not rely on exit events to generate returns. Our primary exit mechanism is repayment — we remain invested for the tenor of the loan and typically exit when the borrower has fully repaid. This allows us to monitor performance and impact throughout the investment period, through reporting obligations embedded in the financing agreements. Over more than two decades, we have followed this approach consistently: investing with a long-term perspective. Our focus is not on premature exits, but on mobilising capital to support sustainable infrastructure development and helping projects mature.

Interview By Idriss Linge