InfraCo Africa – Sub Sahara Infrastructure Fund
InfraCo Africa seeks to alleviate poverty by mobilising private sector expertise and finance to develop infrastructure projects in sub-Saharan Africa’s poorer countries. InfraCo Africa’s support reduces the risks and costs associated with early stage project development and ensures projects are developed to the highest standards, from concept to financeable investment opportunity. It is part of the Private Infrastructure Development Group (PIDG): it is managed as a private company although funded by governments in the UK (DFID), the Netherlands (DGIS) and Switzerland (SECO).
Applying for a InfraCo Africa funding proceeds in a 3 step process:
1) Receive a project proposal or identify an opportunity that meets our investment criteria; Understand the technology, business model, financing and developmental impact; Identify key risks, including health and safety, environmental and social; Confirm government and community support, land ownership and project rights; and Understand and secure approval to the key commercial terms of our involvement. This typically takes 3 to 6 months.
2) Complete technical, legal, financial, environmental and social due diligence (undertaking studies or site visits as required); Get to know the key stakeholders and their aspirations for the project; Complete Know Your Customer (KYC) and/or reputation checks for all significant parties; Secure host government support and confirm resourcing (as required); and Negotiate and secure approval to sign a Joint Development Agreement or equivalent. This typically takes 6 months.
3) Commit funding to develop the project from our entry point to financial close and in some cases operations; Regularly review progress against milestones and budgets, and mitigate or resolve potential issues; Monitor environmental, social, health, safety and other good governance practices (including Anti-Bribery and Corruption); and Source additional support and funding from across the PIDG, or externally as appropriate. This timeline is variable.
As of December 2015, the fund has received USD 131.4m and mobilized more than USD 2bn in investments.
Securing approval to the key commercial terms of our involvement typically takes between 3 to 6 months. Negotiating and securing approval to sign a Joint Development Agreement or equivalent typically takes up to 6 months. Committing funding and monitoring impact is variable for the duration of the fund's investment into the project.