AfDB commits $45m to support private sector infrastructure projects in Africa

The African Development Bank (AfDB) has approved an amount of $45 million senior loan to the Emerging Africa Infrastructure Fund (EAIF).

This is to finance EAIF’s planned investment commitments and to support private sector infrastructure projects as well as infrastructure-related companies in sub-Saharan Africa.

AfDB made the announcement in Tunis, Tunisia on September 28, 2011 in a statement.

The Bank’s commitment, which is part of a joint financing package of $105 million from the Austrian Development Bank and the International Finance Corporation (IFC) to EAIF, will facilitate the Fund’s operations during 2012 in areas such as power, water/waste treatment and manufacturing.

“Sub-Saharan Africa requires substantial investment in all the infrastructure subsectors targeted by EAIF, while the providers of long-term senior and subordinated debt on appropriate terms are limited,” said Tim Turner, Director of AfDB Private Sector and Microfinance Department.

This is the second AfDB loan to EAIF. The statement said in 2009, the Bank approved a $31.25 million senior loan and a $12.5 million standby loan facility.

Established in January 2002, EAIF provides long-term foreign currency debt financing to private infrastructure projects across the sub-Sahara region and lends on commercial terms.

EAIF has approved over 30 transactions since its inception and currently has a portfolio of projects amounting to approximately $500 million across the energy, telecom, transport, mining and manufacturing sectors.

By Ekow Quandzie