Summary sheet
Private equity fund targeting investments primarily in climate resilient infrastructure in Africa.
The investment team targets both new and existing projects or assets and intends to apply for the latter a buy and grow strategy that consists of acquiring significant minority stakes in existing infrastructure platforms and then expanding them further, with a strong focus on climate resilience and transition risk management. The investment team aims to deliver essential or enabling resilient infrastructure assets or projects in transport and logistics, clean energy, industrial parks and economic zones, and in telecommunications and digital infrastructure sectors in Africa.
EIB's investment supports a first-of-a-kind investment strategy of a newly established fund manager that aims to address African host countries limited adaptative capacity and to deploy only climate-proof infrastructure assets in transportation, digitalisation, economic zones and industrial parks and clean energy sectors. It will also support the introduction of high standard of ESG best practices.
The Fund is expected to address the market gap related to the scarcity of equity capital in underserved markets and support the transformation of African production value chains into inclusive and resilient global value chains, delivering on pan-African, regional and national priority objectives.
The Fund will address market failures of (i) negative climate and environmental externalities, (ii) improving the efficiency of the logistics and trade corridors, and (iii) contributing to the digital and (iv) energy transition.
An EIB investment is seen as an essential component for the Fund to achieve (i) the target fund size, and (ii) crowd-in new investors. The Fund Manager has demonstrated willingness to introduce structural enhancements to be in compliance with EIB Group policies and best market practices.
The proposal will contribute to the EU's Global Gateway, the new EU Consensus on Development and other EU strategic initiatives, while advancing several SDGs.
The fund will be required to have an environmental and social policy and the appropriate management systems (policies, procedures and resources) in place so as to comply with the EIB Group Environmental and Social Sustainability Framework and The EIB Environment Framework. The assessment of the environmental, climate and social impacts and risks will be part of the standard due diligence process that the fund will have to carry out for each portfolio company and any underlying investment and, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation and meet the EIB environmental and social principles and standards.
The EIB will require the fund manager to take all requisite measures to ensure that contracts for implementation of the projects financed by the fund will be tendered in line with the Bank's Guide to Procurement.