Investec Asset Management has been appointed to manage the $670 million Emerging Africa Infrastructure Fund (EAIF), a public-private partnership anchored by the governments of the United Kingdom, The Netherlands, Sweden and Switzerland.
According to the company, the appointment followed a competitive tender process that brought interest from over 30 companies globally.
Investec said this development deepened pan-African investment expertise and follows the recent launch of the Growthpoint Investec African Properties platform to invest in pan-Africa real estate, and the recent closure of its second Africa private equity fund.
EAIF is an initiative of the donor-financed private infrastructure development group and was developed to mobilise capital into private sector infrastructure projects across sub-Saharan Africa. Established in 2002, the Fund has committed over $1.2 billion to 63 projects in 19 countries.
In addition to the equity provided by the UK, The Netherlands, Sweden and Switzerland, lenders include a combination of private sector financial institutions and development finance institutions.
Speaking on the appointment, Chief Executive Officer of Investec Asset Management Hendrik du Toit said: “The private sector has a crucial role to play in unlocking the conditions for the sustainable, long-term development of Africa’s infrastructure. A major initiative of its kind globally, this fund aims to provide growth capital, expertise and support to these projects with the aim of stimulating economic development, encouraging growth and employment, and fuelling Africa’s long-term development.”
Also speaking, Chair of EAIF, David White, said the fund has established itself as a market leader in infrastructure finance in Africa and is now ready to be a bigger and more potent force in the economic development of sub-Saharan Africa.
On Investec’s appointment, White said: “We were impressed with Investec Asset Management’s determination and agility, its commitment to our core mission and its belief in a successful future for Africa. Their appointment as the Fund’s manager means that we now have the final element in place to power our growth strategy. Africa is Investec Asset Management’s home territory. From African roots it has built a worldwide business and a demonstrable track record as a good corporate citizen.
“The people responsible for EAIF’s recent success will continue their outstanding work at Investec Asset Management, which is inheriting a team that is greatly respected, deeply knowledgeable and uniquely skilled.”
Co-Head of Africa Fixed Income at Investec Asset Management, who will head EAIF operations, Nazmeera Moola said: “The large demand for funding on the continent and the necessity for effective infrastructure development provides a strong investment backdrop. This offers a compelling entry point into the long-term African growth story. We are very well positioned to take advantage of these opportunities with our extensive experience of investing in emerging markets, underpinned by our heritage, which gives us deep insight into the drivers of African markets.”
As one of the largest third party investors in private equity, credit, public equity and sovereign debt across the African continent, Investec Asset Management will integrate the Fund and its existing team into its African investment platform which includes over 73 Africa-focused investment professionals. Of its total $109 billion asset under management, the firm manages investments in Africa worth $30 billion.