Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has successfully raised $294 million of additional debt facilities, achieving over half of the Fund’s target to raise $500 million by 2025.

The finance facilities demonstrate the Fund’s ability to mobilise private sector debt in one of the largest capital raises in recent years, led by a blended finance debt fund advancing infrastructure development across Africa.

Backed by prominent financial institutions, the package unlocks fresh capital to advance EAIF’s strategic, operational, and financial capabilities – enabling its investment portfolio to expand and meet rising opportunities in frontier and developing economies.

The Fund will invest across various infrastructure assets, including those aligned with the energy transition, low-carbon economies, and energy-efficient smart cities.

As a PIDG company, EAIF fulfils the Group’s key strategic priorities, focusing on pioneering infrastructure projects that offer an innovative, agile, and sustainable approach to delivering essential infrastructure services for economic development.

Allianz Global Investors led the financing on behalf of Allianz Group, one of the world’s leading insurers and asset managers, committing a further €75m and $50m to EAIF.

Standard Bank, Africa’s largest lender by assets, provided a $75m multicurrency revolving credit facility with sustainability-linked features and a $25m sustainability-linked term debt facility.

KfW, the German state-owned development bank, committed a further €60m loan to EAIF.

EAIF secured $385 million of debt capital in 2018, with KfW and Allianz among the participating lenders in the funding round, committing €75 million plus $50 million and €75 million and $25 million, respectively.

The new finance package marks the maturity of Africa’s debt capital markets and illustrates the Fund’s ability to take on and manage risk while delivering sustainable returns and economic impact.

Since EAIF’s establishment in 2001, the Fund and its partners have completed 96 projects and mobilised total investment commitments of over $2.1 billion across 20 African countries and 10 infrastructure sectors.

Reinforcing its leading position as an attractive vehicle for investors seeking exposure to the growing African infrastructure asset class, Moody’s reaffirmed EAIF’s foreign currency long-term issuer rating of A2 with a stable outlook as a testament to its strong capital position, diverse portfolio, and track record of success in Africa.

PIDG plays a unique catalytic role in increasing private investors’ appetite for investing in emerging market infrastructure and responding to macroeconomic trends and the climate crisis.

To create impact on an even greater scale, EAIF plans to start investing in Asian markets this year and work even more closely with PIDG’s guarantee arm GuarantCo, development arm InfraCo, and PIDG Technical Assistance as the Fund progressively expands its Asia portfolio over the coming years.

Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One, the fund manager for the Emerging Africa Infrastructure Fund, said: “Over the last 20 years, we’ve developed a diverse portfolio, a unique business model and a distinct approach to investing for impact and returns, whilst maintaining a minimal default rate. The debt financing is a significant milestone and sign of private investor confidence that strengthens our ability to pioneer new models for infrastructure development – enabling the delivery of transformative projects in dynamic geographies, sectors and complex environments that otherwise would not be bankable. We thank Allianz, Standard Bank and KfW for their continued support. ”

Philippe Valahu, CEO of PIDG, said: “Action on climate and nature, together with sustainable development, through new and improved access to infrastructure are the central focus of everything we do at PIDG. Marking this significant milestone means we are contributing to the goal of improving climate resilience and economic opportunities for 100 million people by 2030, as outlined in our strategy. But the challenges ahead are too great for any single organisation or country and will require more collaboration. We look forward to being part of this journey alongside our key partners.”

Aislinn Baker, Portfolio Manager, Development Finance, at AllianzGI, said:

“We are delighted to see how the EAIF has been helping to unlock Africa’s potential over the last five years which underlines the decisive role private capital plays in blended finance. As one of the early movers in this area, we look forward to seeing how the projects financed by the EAIF will contribute to the further development of infrastructure assets and the energy transition on the continent and facilitate Allianz’s sustainable investment objectives in emerging markets.”

Andrew Pearce, Head of Leveraged Finance, Corporate and Investment Banking at Standard Bank, said:

“Standard Bank’s sustainability-linked loans for EAIF reaffirm our commitment to the sustainable economic development of Africa and align with Standard Bank, EAIF and Ninety One’s shared ambition. Our footprint and expertise across the continent demonstrate that we see Africa’s development as intricately tied to advancing its infrastructure. Through our partnerships, we provide innovative solutions that offer value and transform Africa’s economy. This facility aligns with our strategic objective to deliver structured capital solutions that combine our clients’ sustainability strategy with our banking solutions and enhance value for our clients, businesses, and society.”

Dr. Thomas Duve, Director of Southern Africa at KfW Development Bank, said:

“KfW has been financing EAIF since 2006 in various financing rounds as we strongly believe in the developmental impact that EAIF achieves. EAIF has clearly demonstrated that private sector financing can be mobilised to meet the substantial infrastructure needs in Sub-Saharan Africa if projects are structured adequately and experienced partners, such as EAIF, are part of the financing consortium.

As the mobilisation of private capital is an important target for KfW, we are very pleased to notice that KfW’s financing share in the recent financing rounds is constantly decreasing as private sector institutions, such as AllianzGI and Standard Bank, are gradually taking over the financing of EAIF.”

• Green lending deployed for two biomass plants – expands EAIF’s renewable energy portfolio beyond 1000MW
• Project advances West Africa’s circular economy, boosts yields and incomes of local farmers
• Financing enhances progress to a cleaner, diversified energy mix
• €8m Viability Gap Funding support provided by PIDG Technical Assistance

The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, has announced that it had officially broke ground on the pioneering 46MW biomass power station in Ayebo, Côte D’Ivoire, bringing clean power and a more diverse energy mix to the region.

EAIF has provided a €35m senior loan facility to develop a 46MW biomass power plant in Côte d’Ivoire, the largest facility of its kind in West Africa. Biovea Energie will own and operate the plant when operational.

The capital injection from EAIF, alongside commitments from lead arranger Proparco, a subsidiary of the French Development Agency, will advance the Ivorian energy sector’s net zero pathway and brings a first-of-its-kind project to financial close. PIDG, through its Technical Assistance programme, will support the project’s delivery through an €8m Viability Gap Funding grant, one of the largest it has deployed. 

Expected to cut 4.5 million tonnes of CO2 emissions over its 25-year lifetime, the €237m venture is a breakthrough development in a dynamic energy sector. The project is expected to drive a demonstrative effect by signifying an innovative approach to achieve Côte d’Ivoire’s goal to generate 45% of energy from renewable resources by 2030.

Biovea, owned by EDF International, Meridiam and SIFCA, has been awarded a 25-year power purchase agreement to supply the Ivorian grid. The new plant reinforces the government’s priority to expand access to electricity by 2025 – improving energy security in rural areas with an electrification rate as low as 38%.

Located in Ayebo, 100km east of the capital, Abidjan – Biovea Energie’s project will benefit 1.7 million people. Approximately 12,000 will be local out-growers, supplying up to 70% of the palm tree leaves and branches that will fuel the power plant. Integrating local farmers into the supply chain diversifies their revenue and welcomes greater income security, boosting their earnings by an expected 15%. 

While supporting longevity in income generation for out-growers, the project will also deliver economic opportunities during its construction phase. Development of the plant and accompanying transmission, transport and communications infrastructure will generate 500 jobs. An additional 1,000 roles will uplift the local economy once Biovea Energie commissions the project.

Maximising impact is a critical objective for the partners of the project, which extends to circularity in the supply chain. Preventing environmental harm by promoting the reuse of 520,000 tonnes of agricultural residue that would otherwise be discarded, the project signifies the potential for more regenerative economies. Once processed to power the turbines in the plant, ashes of the residue will be provided to farmers and used as a natural fertiliser for crops – enabling the uptake of more sustainable farming practices that boost yields.

Establishing energy security in the country impacts those nearby, as the country’s evolving energy market serves as an essential exporter of electricity to six of its neighbouring countries.

Once commissioned, the plants will align with PIDG’s commitment to the UN’s Sustainable Development Goal on Access to Clean and Affordable Energy (SDG 7). They are a demonstration of the multifaceted approach needed to propel green growth on the continent and exhibit how participation across the value chain can enhance diverse levels of development. 

Commenting on the transaction, Olivia Carballo from Ninety One, fund manager of the Emerging Africa Infrastructure Fund, said: 

“As such a crucial energy market to one of the continent’s most important production hubs, impacts of a greener economy extend beyond the borders of Côte d’Ivoire. It is emblematic of the many resources we can leverage to accelerate growth across Africa and do so inclusively while contributing to the sustainability of thousands of livelihoods in the area.”

Biovea Energie’s CFO, Franck KOBLAVI, commented:

“We are delighted to close the deal as it has been highly anticipated and moves us closer to evolving the country’s energy mix and progressing an ambitious but attainable sustainability agenda. Working with best-in-class partners has ensured deep deliberation to other aspects of creating impact and will ensure quality service delivery from investment to energy production.”  

Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF), has announced a €25 million finance facility to Ivoire Hydro Energy (IHE), which will build a 44MW hydro electricity generation plant on the Bandama River near the village of Singrobo in Côte d’Ivoire.

EAIF’s long-term financing package enables IHE to achieve financial close for the project, catalysing the design, construction and operation of the power plant and associated infrastructure and boosting rural access to clean energy.

The new plant will be an essential strategic economic asset for Côte d’Ivoire, where electrification rates range from 88% in urban areas to as low as 31% in rural parts of the country.

By displacing expensive peak-time diesel production and reducing CO2 emissions by 124,000 tons per annum, the plant is also integral to the government’s efforts to achieve the UN’s Sustainable Development Goals on Climate Action (SDG 13) and on Affordable and Clean Energy (SDG 7).

The construction of the plant – as well as 3km of access roads and a 4km 90 kV transmission line and substation to connect the hydropower plant to the existing Taabo-Agboville transmission line – will generate over 500 jobs. 

Paromita Chatterjee, Investment Director at Ninety One, the fund manager for EAIF, noted: “The new facility at Singrobo will be Cote d’Ivoire’s first hydro-electric development by an independent power producer. We are excited that it delivers on three of PIDG’s strategic objectives: mobilising private capital, enabling economic development and contributing to increasing Africa’s stock of renewable energy infrastructure.”

The Singrobo plant catalyses the Ivorian government’s strategic plan for the development of the electricity sector, which aims to increase the total installed capacity to 4.2 GW (from approximately 2.2 GW currently) by 2030 mainly through Public-Private Partnerships, reaffirming EAIF’s role as a pathfinder supporting the development of nascent renewable energy markets.

A long-term power purchase agreement will see all of the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricité, the operator of Côte d’Ivoire’s national grid.

In addition to closing the rural energy access gap and strengthening economic productivity, the plant’s flexible operating model enhances grid resilience, meaning it may be called in to meet baseload and peak demand.

The African Development Bank (AfDB) acted as the mandated lead arranger of the debt finance and will be a senior lender in its own right.

In addition to AfDB and EAIF, the other lenders are the German international development agency, DEG and the Africa Finance Corporation (AFC).

Furthermore, 25% of the project cost is funded by equity from the project’s shareholders, IHE Holding, the Africa Finance Corporation and DIPFA, a Denham Capital-owned international investment platform for power projects.

Neo Themis SARL is advising and acting for the shareholders in relation to finalising the project’s development and the financing agreements.

The project site is located on the Bandama River, 23 km downstream of the existing Taabo Dam and upstream of the confluence of the Nzi River.

It is 3.5 km from the Singrobo village in the province of Taabo and 148 km by road from Côte d’Ivoire’s capital city, Abidjan.