The African Development Bank (AfDB) is making a second loan to the Emerging Africa Infrastructure Fund (EAIF) to support what the AfDB characterized as an “immense” need for developed infrastructure in Africa.
The AfDB announced an eight-and-a-half-year, $45 million loan to the fund. The latest loan followed a $31.25 million loan as well as $12.5 million ‘standby’ loan in 2009.
The $45 million loan was part of a joint-financing arrangement involving Austrian Development Bank and the International Finance Corporation (IFC), a member of the World Bank, totalling $105 million.
“This infrastructure gap is a major constraint on doing business [in Africa],” the AfDB noted in a statement.
Launched in 2002, EAIF has a $500 million infrastructure portfolio spanning power, transportation, and telecommunication. The EAIF and AfDB partnership has led to the Addax Bioenergy project in Sierra Leone, as well as the Rwanda-based KivuWatt Power project.
In July, Infrastructure Investor reported the AfDB loaned Egypt-based private equity firm Citadel Capital $40 million for its rail platform portfolio company, Africa Railways.
To find out more about African infrastructure, read Infrastructure Investor Africa: An Intelligence Report, published in February 2011.