The Emerging Africa & Asia Infrastructure Fund (EAAIF), a private infrastructure development group under the management of Ninety-One, has successfully secured $325 million in new debt financing, boosting its total recent capital mobilization to an impressive $620 million. This achievement significantly surpasses the fund’s initial $500 million target set for 2025, demonstrating strong investor confidence and paving the way for substantial investments in infrastructure projects across developing economies in Africa and Asia. EAAIF aims to deploy over $1 billion into these crucial projects by 2028, further solidifying its commitment to fostering sustainable economic growth and addressing critical infrastructure gaps in these regions. This substantial influx of capital reinforces EAAIF’s position as a key player in attracting and channeling investments towards sustainable infrastructure development, particularly in sectors crucial for economic transformation and climate resilience.
The recent funding round was spearheaded by Allianz Global Investors, which committed €100 million on behalf of Allianz Group, showcasing a significant vote of confidence from a leading global investment firm. This commitment was further bolstered by contributions from prominent financial institutions across the globe, including South Africa’s ABSA and Standard Bank, contributing $75 million and $50 million respectively, Sumitomo Mitsui Banking Corporation (SMBC) with a $50 million commitment, and Sweden’s development finance institution, Swedfund, with €40 million. The diverse range of investors underscores the growing international recognition of the importance of investing in emerging market infrastructure and EAAIF’s ability to effectively manage and deploy these funds to achieve impactful outcomes. The participation of both private and public sector investors highlights the increasing convergence of interests in addressing the infrastructure deficit and fostering sustainable development in these regions.
This new capital injection builds upon a previous successful fundraising round in 2024, where EAAIF secured $294 million. The combined capital is earmarked for investments across several key sectors, including the burgeoning digital economies of Africa and Asia, the vital energy transition towards cleaner and more sustainable energy sources, and the ongoing transformation of the power sector. These strategic investments are aimed at driving economic growth, creating jobs, and improving the quality of life for communities in developing countries. The focus on these specific sectors underscores EAAIF’s commitment to supporting projects that address critical development challenges and contribute to long-term economic sustainability. The fund’s investments will play a crucial role in bridging infrastructure gaps, facilitating access to essential services, and promoting inclusive economic growth.
A significant portion of the raised capital will be directed towards addressing the pressing need for climate finance in Africa. EAAIF highlights the stark reality that only about 23% of Africa’s climate finance needs are currently being met, emphasizing the urgent need for increased investment in climate resilience and adaptation measures. By channeling funds towards climate-related infrastructure projects, EAAIF aims to contribute to mitigating the impacts of climate change and building more resilient communities. This commitment aligns with global efforts to mobilize climate finance and supports the transition to a low-carbon, sustainable future. The investment in climate-focused projects further emphasizes EAAIF’s dedication to not only economic development but also environmental sustainability, reflecting a holistic approach to infrastructure development.
The success of EAAIF’s fundraising efforts reflects the growing confidence in its strategic approach and impact-driven investment philosophy, as articulated by Martijn Proos, Co-head of EM Alternative Credit at Ninety-One and Managing Director of EAAIF. Since its inception in 2001, EAAIF has demonstrated a strong track record, having committed over $3 billion to more than 125 infrastructure projects across 25 countries and spanning 10 diverse sectors in Africa and Asia. This extensive experience and demonstrable impact have positioned EAAIF as a trusted partner for investors seeking both financial returns and positive social and environmental outcomes. The fund’s long-standing presence in these regions and its deep understanding of local market dynamics contribute to its ability to identify and execute impactful projects.
This significant milestone represents a crucial step towards achieving the Private Infrastructure Development Group (PIDG)’s ambitious goal of mobilizing $25 billion in additional finance and delivering $9 billion in new commitments by 2030, as emphasized by PIDG Chief Executive Officer Philippe Valahu. The success of EAAIF, a blended finance vehicle backed by the governments of the United Kingdom, the Netherlands, Switzerland, and Sweden, underscores the effectiveness of public-private partnerships in catalyzing private investment for development. The support from these governments provides crucial risk mitigation and enhances the fund’s ability to attract private capital, demonstrating the power of blended finance in addressing complex development challenges. The strong support from these governments provides credibility and stability to the fund, attracting further private investment and maximizing the impact of development finance. The continued commitment of these and other institutional investors will be crucial to achieving PIDG’s long-term goals and driving sustainable infrastructure development across emerging markets.
