This EAIF investment creates value for Allianz’s insurance customers and fits excellently into the international investment strategy of Allianz Group. The African continent offers positive long term growth outlook driven by factors such as favorable demographics, an expanding middle-class and urbanization.
EAIF is part of the Private Infrastructure Development Group (PIDG), a donor-backed organisation that encourages private sector infrastructure investment in the world’s lowest-income countries. PIDG blends public and private finance to reduce investment risk, promote economic development and combat poverty. Allianz’s investment in EAIF marks the start of PIDG’s drive to attract greater levels of funding from institutional and commercial sources.
Nazmeera Moola, Head of EAIF’s fund manager, Investec Asset Management, says, “Bringing the vision and support of a lender of Allianz’s calibre on board represents a milestone in terms of mobilizing private capital into infrastructure projects across the continent. This debt raising exemplifies the gains to be made from PIDG’s blended finance approach. IAM has a successful track record of co-investing private and public funds side by side in both private credit and private equity funds in Africa.”
“We believe in Africa’s growth potential and will invest across different asset classes across the continent. The partnership with EAIF and Investec Asset Management is an important contribution to this initiative and illustrates how to create attractive risk-return profiles with the necessary downside protection for our policyholders,” says Sebastian Schroff, Global Head of Private Debt, Allianz Investment Management.
Nadia Nikolova, Director, Infrastructure Debt at AllianzGI, says: “We are delighted to put our infrastructure debt expertise to work to help facilitate Allianz’s investment strategy in Africa. Over the last five years, our global infrastructure debt platform has invested over 10 billion euros into infrastructure projects across the globe. As Africa unlocks its economic potential, the continent will become increasingly important for institutional investors.”
In addition to Allianz, KfW has again made a key contribution of around $140 million. "We are pleased to expand our commitment to the EAIF. This partnership and the investments in renewable energy and cleaner technologies strengthen economic development across large parts of the African continent and improve the quality of life of those living there," says Helmut Gauges, Head of the Africa/Middle East Directorate at KfW Development Bank.
Since its foundation, EAIF has invested around $1.3 billion, which has been instrumental in attracting over $10.9 billion of private capital investment to over 70 projects in some 22 sub-Saharan countries. The EAIF portfolio has also been mapped against the UN’s Sustainable Development Goals, ensuring that projects can directly, demonstrably and quantifiably contribute to positive impact across the continent.