The European Investment Bank (EIB) has committed US$80 million (about N$1.4 billion) in equity to the Pembani Remgro Infrastructure Fund II (PRIF II) to finance infrastructure projects in sub-Saharan Africa. 

This investment was announced at the recent Africa Investment Forum. 

The financial instrument is intended to fund renewable energy, digital infrastructure and transportation initiatives that support climate action, environmental sustainability as well as local economies and society. The EIB is the long-term lending institution of the European Union, owned by its member states. 

It finances investments that contribute to European Union policy objectives.

Every year, Africa faces a US$100 billion gap in infrastructure financing, which limits growth and access to essential services. 

Despite its renewable energy potential, Africa only receives 2% of global clean energy investment. 

PRIF II will invest in climate action projects that support initiatives in line with the EIB’s Climate Bank Roadmap. 

The fund will also support projects to improve transport connectivity and achieve equitable access to secure and affordable digital infrastructure to encourage sustainable development across the continent.

The fund will first invest in an Africa-wide data centre platform, expanding digital connectivity and addressing the digital divide, with 900 million people in Africa still without access to the internet.

“This is the EIB’s largest commitment to an African fund. It reflects our commitment to Africa. Our US$80 million equity investment in the Pembani Remgro Infrastructure Fund II will help to address important issues, such as clean energy, digital access, transport connectivity and job creation. Strengthening partnerships such as this one is key to building a sustainable future,” said EIB vice president Ambroise Fayolle. 

Herc van Wyk, CEO of PRIF II, added: “We are delighted to welcome the EIB as a major investment partner in PRIF II, and look forward to a long-term partnership to address the infrastructure needs in Africa”.

The fund is expected to create 1 400 full-time jobs, and will focus on projects that promote inclusive growth. The fund adheres to global environmental and social responsibility standards. 

It aims to qualify for the 2X Challenge, advancing gender equality and creating opportunities for women and young entrepreneurs.

EIB financing is expected to enable the fund manager to leverage additional private and public funding, helping the fund exceed its target size with total commitments worth US$355 million. 

This is anticipated to further enable the fund to deliver impactful projects on the ground.

This operation underlines the importance of its contribution to the EU Global Gateway strategy, which plans to mobilise €300 billion for global infrastructure by 2027, with half of it dedicated to Africa.