$45m AfDB loan to aid ‘immense’ infrastructure demand

The Emerging Africa Infrastructure Fund has again tapped the African Development Bank to finance its infrastructure portfolio. The fund garnered its first AfDB loan in 2009.

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.