Ninety One has secured EUR 40 million from Swedfund for its Emerging Africa and Asia Infrastructure Fund (EAAIF), an open-ended vehicle that recently expanded its mandate to include Asia. The investment underscores growing international support for infrastructure financing across Africa, the Levant, and South and Southeast Asia.
Fund Overview and Strategic Expansion 📈
Ninety One’s EAAIF was initially focused on Africa but recently expanded its mandate to include South and Southeast Asia. This strategic move aims to address infrastructure bottlenecks and enhance climate resilience across both regions. Despite the expansion, Africa remains a priority, with the fund continuing to back high-impact projects that elevate energy security and economic development.
- Fund Size: USD 2.1bn in commitments since its launch 24 years ago.
- Investment Scope: Senior and mezzanine loans of USD 10m to USD 65m for infrastructure and renewables.
- Geographic Focus: Africa, the Levant, South and Southeast Asia.
- New Fundraising Target: USD 300m–400m, primarily from private institutional investors.
Recent Investments and Market Impact 💡
EAAIF has been actively deploying capital into transformative infrastructure projects. Recent investments include:
- €28 million in a 52 MW solar plant in Côte d’Ivoire, aiming to attract further private investment and expand energy access.
- $20 million to CME Solar in Vietnam, financing rooftop solar for commercial and industrial clients, reducing reliance on coal-fired power.
These investments highlight EAAIF’s role in bridging financing gaps and catalyzing sustainable infrastructure development. EAAIF recently provided a USD 42m loan to finance the construction and operation of the 46MW Biovea biomass plant in Côte d’Ivoire, advancing the region’s renewable energy goals.
Infrastructure Gaps and Financial Modelling in Investment Decisions 🚀
With Africa home to 75% of the global population lacking access to electricity, and Asia facing significant energy constraints, the need for sustainable infrastructure financing is urgent. EAAIF’s approach integrates financial modelling techniques such as:
- Cash Flow Projections: Ensuring bankability and investor confidence.
- Risk Assessment Models: Identifying and mitigating regulatory and currency risks.
- Capital Structuring: Balancing debt and equity to optimize financial sustainability.
By leveraging these financial tools, EAAIF supports projects that combine commercial viability with sustainable development goals. Swedfund’s commitment reflects a broader push for sustainable infrastructure development in emerging markets. The fund’s expansion into Asia and ongoing fundraising efforts highlight increasing investor interest in long-term infrastructure financing.
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