Allianz invests $120m in The Emerging Africa Infrastructure Fund

The announcement begins a drive by PIDG companies to attract greater levels of funding from institutional and commercial sources.

Sebastian Schroff, global head of private debt, Allianz Investment Management, said: “We believe in Africa’s growth potential and will invest across different asset classes across the continent. The partnership with EAIF is an important contribution to this initiative and illustrates how to create attractive risk and return profiles with the necessary downside protection for our policyholders.”

Allianz will loan €75 million and US$25 million, both over 12 years. In addition the African Development Bank returns as a lender to EAIF, providing a total of US$75m over 10 years.

Standard Chartered Bank is increasing and extending its existing lending to US$50m. Underlining its continuing support, KFW is contributing US$50m and €75m, both over 12 years, and FMO is lending US$50m over 10 years.

EAIF has committed $1.3bn of donor and investor funds to 71 infrastructure projects across sub-Saharan Africa as the first PIDG company to be founded in 2002.

These investments have mobilised US$10bn of private sector investment and helped an estimated 128 million people gain access to new and improved infrastructure.