OFID signs commitment agreement for infrastructure fund for sub-Saharan Africa
The OPEC Fund for International Development (OFID) has signed a commitment agreement of US$15m to the Pembani Remgro Infrastructure Fund (PRIF). The fund will invest in the full spectrum of infrastructure projects in Sub-Saharan Africa, covering sub-sectors such as transport, energy, telecoms, water and sanitation.
The geographical focus of the PRIF will be the whole of sub-Saharan Africa. The primary target countries will include Ghana, Uganda, Kenya, Tanzania, Zambia, Mozambique, Botswana, and Namibia. Selected transactions may also be considered in other Sub-Saharan Africa countries, such as Congo, Sierra Leone, Ethiopia and Rwanda.
Investments in infrastructure provide significant opportunities for sustainable development impact, particularly in job creation. This is due to both project construction and the knock-on improvements in business productivity of businesses derived from reliable electricity and better transport and logistics.
According to the Africa Infrastructure Country Diagnostic, the poor state of infrastructure in sub-Saharan Africa cuts national economic growth by two per cent every year and depresses business productivity by as much as 40 per cent. African countries significantly lag behind their developing country peers, particularly in transportation infrastructure and energy.
OFID will support this fund alongside the CDC Group plc, Germany’s DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and local African investors.