Award for private capital mobilisation in Africa

01.04.2019 - Article

The current financing round for the Emerging Africa Infrastructure Fund (EAIF) – once again with the participation of German Development Bank KfW – has won the IJGlobal African Fundraising Deal Of The Year Award, writes KfW.

 Presentation of the IJGlobal Awards 2018 in London's Natural History Museum. KfW was represented by Babette Stein von Kamienski (fourth from left).
 Presentation of the IJGlobal Awards 2018 in London's Natural History Museum. KfW was represented by Babette Stein von Kamienski (fourth from left).© KFW

Mobilising capital – especially also from private investors – for the urgently needed expansion of infrastructure in African countries is and remains one of the greatest challenges for development policy. TheEAIF is setting standards here with the involvement of KfW. The current financing round, with a total volume of more than 385 million US dollars was therefore awarded this year's 'IJGlobal African Fundraising Deal of the Year Award' by the Project Finance & Infrastructure Journal.

KfW has been supporting EAIF on behalf of the German Ministry for Economic Cooperation and Development (BMZ) since 2005 and is the largest lender of debt capital. KfW is also participating in the current increase with two tranches of 75 million Euro plus 50 million US dollars, in addition to other development financiers such as the Dutch FMO and the African Development Bank. The Allianz Group's involvement as the first commercial anchor investor is groundbreaking. For the first time ever, Allianz has committed itself to long-term loan commitments in the triple-digit million range. This shows that even seemingly difficult markets can be attractive for large private investments if suitable conditions are created with innovative instruments.

EAIF has already financed over 70 projects in 22 countries in sub-Saharan Africa, including in the areas of energy, drinking water, telecommunications, waste management and transport. The loan portfolio currently amounts to 750 million US dollars. Current examples of investments made possible with the support of EAIF are the largest solar power plant in West Africa, Akuo Kita in Mali, or the expansion of drinking water treatment in the Rwandan capital Kigali as a public-private partnership. Head of division Babette Stein von Kamienski, who represented KfW at the awards ceremony in London's Natural History Museum on March 21, said: “The award-winning EAIF financing shows that private capital can be used meaningfully towards the development of Africa and the achievement of the SDGs. We are proud to be playing a role because the potential is far from exhausted.”

The fresh capital will be used to further enlarge EAIF's portfolio over the next five years. The distinction of the IJGlobal Award and the attention that comes with it are an incentive for all participants.

© KfW

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