Baar-Zug, Switzerland, October 26, 2023
Blue Earth Capital (“BlueEarth”), through its investment vehicles, has committed USD $ 20 million to African Infrastructure Investment Fund 4 (“AIIF4”). AIIF4, managed by African Infrastructure Investment Managers (“AIIM”), seeks to support the development of sustainable infrastructure in Africa, which remains the most underserved continent with a significant structural imbalance between the demand and supply of high-quality essential services.
David Moore, Principal of Funds and Co-Investments at BlueEarth stated: “We are delighted to partner with AIIM as we together seek to address the chronic shortage of quality infrastructure development across Africa. Their work in developing infrastructure projects across the continent aligns with BlueEarth’s ‘total impact’ model, and we look forward to beginning our partnership”.
Despite strong demand-side tailwinds, including rapid population growth particularly among the under-25-year age group (comprising more than 50% of the continent’s total 1.1 billion residents) [1], investment in African infrastructure remains low. Across the continent, there is an estimated infrastructure funding gap of c. USD $ 68-108 billion per annum [2], with less than 1% of the USD $ 587 billion raised for global infrastructure funds since 2016 allocated to the continent. [3] This underinvestment has led to heavy fossil fuel dependency, high data costs, poor energy grid connections, and limited transport infrastructure. [4]
Blue Earth Capital believes that AIIM is well positioned to tackle these challenges by targeting growth and value-add infrastructure within the digital infrastructure, energy transition and mobility sub-sectors. AIIM will invest growth capital in its target portfolio companies offering strategic and operational support via its experienced, sector specialist investment team and significant, dedicated value creation resourcing (including a Senior Advisory Panel of infrastructure industry veterans).
BlueEarth will partner with AIIM to continue to develop its environmental, social and governance processes and align on a clear set of impact priorities related to the targeted sub-sectors of the AIIF4 investees.
About AIIM
AIIM, a member of Old Mutual Alternative Investments, has been investing in the African infrastructure sector since 2000 with a track record extending across eight African infrastructure funds. AIIM’s team of 40+ investment professionals is based out of five locally staffed offices across the continent in Cape Town, Johannesburg, Nairobi, Lagos and Abidjan providing direct on-the-ground coverage of their key markets.
AIIM currently manages an aggregate AUM of USD $ 2.7 billion in assets across the power, renewable energy, digital infrastructure, mid-stream energy and transport sectors with operations in 19 African countries. AIIM’s power portfolio extends across renewable energy and thermal power assets which have a combined generation capacity of over 3,290 MW, of which 73% is renewable energy providing clean power to more than 2.0+ million households a year.
AIIM is a licensed FSP approved by the Financial Sector Conduct Authority in South Africa.
About Blue Earth Capital
Blue Earth Capital is a global, independent, specialist impact investor, headquartered in Switzerland, with operations in New York, London, and Konstanz. Blue Earth Capital seeks to address the world’s most pressing social and environmental challenges by delivering measurable impact alongside aiming for attractive and sustainable financial returns. The company operates dedicated private equity, private credit and fund solutions. Blue Earth Capital is owned by the Blue Earth Foundation, a Stiftung (charity/trust) registered in Switzerland that focuses on deep impact to support initiatives and business ventures to help deliver a more equitable and sustainable future.
BlueEarth media contact
Kekst CNC
M +44 7581 034797
Email: Blueearthcapital@kekstcnc.com
[1] African Development Bank Group (2023). Cities Alliance (2020).
[2] United Nations (2022).
[3] Preqin (2021).
[4] World Economic Forum (2021). Brookings Institute Africa (2021). World Bank (2021). African Development Bank Group (2021).