AfDB invests $18m to help fill Africa’s infrastructure financing gap

The Board of Directors of the African Development Bank (AfDB) has approved an $18 million private equity investment to be used to finance infrastructure projects in sub-Saharan Africa.

The recipient of the investment is the InfraCo Sub-Saharan Infrastructure Fund (ISSIF), the Tunis-based Bank announced in a statement June 18, 2012.

The ISSIF aims at a target capitalization of $200 million of equity with a first closing of $100 million expected third quarter 2012 to participate in greenfield and brownfield infrastructure projects.

The AfDB said the Fund will catalyze additional funds for infrastructure projects, which will create employment and bring essential skills and technical knowledge to sub-Saharan Africa.

Infrastructure requirements in the sub-Saharan market are estimated at $94 billion annually over the next decade, according to the Bank.

By Ekow Quandzie