South Africa : AFDB gives $18 million in infrastructure investments.

As per the reports, the African Development Bank (AfDB) has approved a USD 18 million private equity investment in infrastructure in sub-Saharan Africa. The recipient of the investment is the InfraCo Sub-Saharan Infrastructure Fund (ISSIF), aiming at target capitalization of USD 200 million of equity with a first closing of USD 100 million expected third quarter 2012 to participate in greenfield and brownfield infrastructure projects. The ISSIF will catalyze additional funds for infrastructure projects, which will create employment and bring essential skills and technical knowledge to sub-Saharan Africa.

The ISSIF represents a key alternative for private-led financing for the infrastructure sector in Africa. The ISSIF is sponsored by InfraCo Limited, a donor-financed fund launched by the Private Infrastructure Development Group and EleQtra LP, a group of companies specializing in the development, financing and ownership of greenfield infrastructure projects. The ISSIF will provide scarce equity capital for infrastructure projects, create jobs and enhance the transfer of knowledge in Africa. These infrastructure investments are crucial to release constraints on long term sustainable growth and private sector development.

Mrs Tas Neside Anvaripour, AfDB's manager of the infrastructure finance division said, "Buttress by a strong pipeline due to Infraco's role as a project developer, ISSIF is expected to have immediate access to quality projects and help them to get to bankability stage".

2012 Al Bawaba (Albawaba.com)

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