Infrastructure funds in sub-Saharan Africa continue to draw keen interest from the institutional segment. On Thursday, African Infrastructure Investment Managers (AIIM) announced the closing of its third African Infrastructure Investment Fund (AIIF) with $320 million in commitments. The fund has already made nine investments in thermal power, renewable energy, ports and logistics, and airport sectors, according to IREI. This latest commitment raise brings the fund’s total AUM to $2.2 billion since inception.
AIIM—founded jointly by Macquarie and Old Mutual—manages investments in 15 countries in the sub-Saharan region, including toll roads, renewable energy, power generation, ports and telecommunications infrastructure. Earlier this year, AIIM took a minority stake in BBOXX, a disruptive affordable utility company whose services provide plug-and-play solar power to 750,000 previously off-grid customers in 12 frontier markets, paid for using mobile money apps on a pay-as-you-go basis. BBOXX is now aiming for 2 million installations of its affordable solar power systems by 2022, and hopes to expand into other utility areas, such as cooking, internet access and water.
Paul Frankish, head of AIIM’s strategic initiatives, told Real Assets IPE that alternative funds focused on African investments have raised an average of $2.5 billion each year over the last five years, with dedicated infrastructure funds drawing $233 million of this amount.