• Friday, June 21, 2024
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AfDB invests $20m in Pembani Remgro Fund II

AfDB report puts Africa’s GDP at 3.8% in 2024

Companies in Nigeria, Ghana, South Africa, Ethiopia, and a few others on the African continent are set to benefit from the African Development Bank’s (AfDB) US$20 million investment in Pembank Remgro Infrastructure Fund II after its Board of Directors on Monday approved that sum in Côte d’Ivoire.

The bank said this investment will allow Pembank Remgro Infrastructure Fund II to raise up to $400 million from private, commercial, or institutional investors to invest in industrial and infrastructure projects in Africa.

Other than companies based in Nigeria, Ghana, South Africa, and Ethiopia gaining in industrial and infrastructure projects such as digital infrastructure, the energy transition (i.e., renewable energies), logistics, and transport, many companies in countries such as Kenya, Angola, Uganda, Zambia, Mozambique, Botswana, Namibia, Côte d’Ivoire, Sierra Leone, and Rwanda are also poised to benefit.

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Other areas in which these funds are expected to be invested are waste recovery, heating, ventilation, and air conditioning, with a focus on energy efficiency.

The Bank also said in its statement, “They will also be used for the development of resilient regional value chains and infrastructure technologies.

“The Fund’s investment strategy is consistent with the African Development Bank’s Ten-Year Strategy, which is focused on green and inclusive growth. It is also consistent with the Bank’s priority areas (its “High 5s“).

“Furthermore, the project is aligned with the African Development Bank’s Strategy on climate change and green growth for the period 2021–2030. It is expected to help improve the implementation of nationally determined contributions in target countries. This will translate into better climate funding flows in these countries and contribute to achieving the objectives set out in the Paris Agreement on climate change.

“The African Development Bank is committed to helping mobilize private capital to fund infrastructure in Africa. It estimates that there is an annual $100 billion funding gap.”

Abdu Mukhtar, director of the Industrial and Trade Development Department at the African Development Bank, said: “The Bank’s operations help capital investment funds like the Pembani Remgro Infrastructure Managers to mobilize investments aimed at industrial and infrastructure projects on the [African] continent. These [operations] contribute to economic growth and job creation by improving business efficiency, mitigating the effects of climate change, and improving levels of health and education.”

Wale Shonibare, director of the African Development Bank’s Energy Financial Solutions, Policy, and Regulation Department, said: “It is essential to cover the infrastructure gap to ensure economic prosperity and sustainable development in Africa.”

Pembani Remgro Infrastructure Managers manage the Pembani Remgro Infrastructure Fund II. It is a fund manager formed in 2012 and based in South Africa.